Source of Dreamz Infra Reviews & Discussions - Report Your Complaints: dreamz infra bangalore

Your home must be one of the most valuable assets that you own or will own. It’s quite natural that one would become emotional and would overlook the necessary precautions that one needs to take while buying a home. Nowadays with the increasing fraud and deviation from agreement by the builders, background check of the builder is essential. Apart from that verification of title and other documents of the land is also a necessary step that one needs to take. Dreamz Infra walks a mile extra and has organized a home fair on the 27th and 28th of June 2015 in which they framed a four step process for the buyer. The company took the customers to their existing projects which they have completed and allowed the prospective customers to gather information and get recommendation form past customers.

Dreamz Infra throws an open challenge to the customers to be doubly sure about the quality, talk to the land owners and verify the land title and other details and then take an informed decision to buy. After scrutinizing the genuineness of the company by the customers the company offers the apartments at 50 percent lower price than the market rates. The company wants to make sure that everything is transparent and nothing is hidden between the customer and the builder. A great idea indeed!.

The fair was organized with projects across 12 locations in and around Bengaluru and mostly the locations are in the sought after places. This must have attracted maximum sales as this is a unique kind of offer to the customers.

The good news is that Dreamz Infra extends this Home Fair on the 4th and 5th of July and this time as well the company extends the seven step offer to verify the credentials of the builder and then book your homes. The company also assists customers to help them manage their finances. If you want to grab a home at half the prices with full transparency, assurance and assistance from your builder you should visit the Home Fair. Happy Home Shopping!

Follow adreamz infra reviews regulary for updates on property news and Company offers

Apartments in Bangalore South - 04:47

Dreamz Extends Never before Home fair with builder verification

Your home must be one of the most valuable assets that you own or will own. It’s quite natural that one would become emotional and would ...

Dreamz Completed Projects - 02:04

Dreamz Infra Under Construction Projects across Bangalore

Dreamz Infra is well known Residential Construction company in Bangalore. Dreamz Infra is providing Flats / Apartments at very affordable ...

bangalore real estate - 23:16

Bangalore tops as the Luxury Homes market in the Country

One of the international property consultancy firms says that Bangalore tops the luxury homes market and has set its yardsticks. The major...

It has been noted that the Government is very hesitant while acting against 23 landlords and builders who have not as of now surrendered to it. It is believed that after the Congress-led state government actually took some steps to clear the files relating to public interest that were pending for action, its inactivity was evident. It was reflected in the fact that that despite two years’ time of relapse, no action was taken against 23 builders who have not handed over flats under the Urban Land Ceiling and Regulations Act (Ulcra) to the state. All in all there are a sum of 191 flats of that kind.

The sad part is that the file which makes a proposal that the government must take action against this damage is simply being ignored and is lying in the chief minister’s office. The government’s swiftness can be deciphered form the mere fact that it has taken over one and a half year simply to part with the names of the dwellings in question and the developers. Moreover, in the legislative council queries were elevated.

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According to some sources, it has been noted that the 23 developers did not even think of handling over the flats, finished the housing projects on land that forms a part of the Ulcra some years ago. However, they have now either refused to surrender them or sold to third parties.

Survey conducted
When it was noticed by the state that there was a rupture, the office of the additional collector of Ulcra for Mumbai carried out a survey. Moreover, a plan to start forward an action was sent to the state urban development department too. This is being chaired by the chief minister. There was noticed that there was too much interruption in registering cases against the erring parties.

Hence, with an intention to curb the situation, the government came to a conclusion to hire a committee headed by the then principal secretary T C Benjamin. This was done with an intention to figure out if any steps were delayed at any level.

Delay in action
According to the Leader of Opposition Tawade, he stated that it would certainly be wrong to state that the CM was not in favor of the builders lobby regarding the delay in timely action. However, the fact is that the builders were being protected by him who have declined to part with the legitimate state share. Moreover, in spite of constant reminders, no action was taken against the developers by the state.

dreamz infra bangalore - 01:11

No Action Taken by Govt against Builders Holding on to 191 State Flats

It has been noted that the Government is very hesitant while acting against 23 landlords and builders who have not as of now surrendered ...

The last year failed to impress the customer sentiments in the nationwide realty network. Things were not much different for prominent regions as well as the outskirts. In this scenario, Bangalore city remained kind of stable with better results.

Trends-in-Bangalore-Realty-Sector-adreamz-infra

This is a great achievement considering how worst things proved to be in the last year. The city could show better stability in terms of realty developments and sales due to several factors, chiefly owing to the IT/ITES sector. The other factors remain increased employment and educational opportunities, impressive lifestyle and availability of several options in terms of residential sector.

The last year witnessed several peripheral areas being converted into active real estate hubs. The areas include Bellandur, Whitefield, Marathahalli, Bannerghatta Road and a few others.

The realty prices in the city have been more or less steady during the last few years. Prices went in for a slight increase in 2013, due to the unfavorable circumstances prevailed.

This year is likely to see more number of new launches and the city is observed to present a healthy mix of luxurious and mid-level properties. Affordable housing sector also showed similar results with a significant number of launches.

The city has options for all, be it a luxurious housing, mid-end segment or budget properties.

Adding to the number of fast developing areas are regions like Old Madras Road, K R Puram, New International Airport Road and Outer Ring Road. Apart from these, several northern, western and suburban locations are coming up. More builders are coming up with flats or houses well within 1 to 2 crores. And, reports indicate that people are willing invest in a luxurious home which allows them to live a life on par with global lifestyle standards.

The Bangalore Metro Rail Projects Deserves mention here as a game changer that brought in overall improvement in the sector. The demand was quite stable in areas surrounding the metro and more and more builders are showing interest in these regions.

Bangalore also witnessed many projects coming up in the category of environmental-friendly homes.

Yet another development, though not very recent has been the new international airport in Devanahalli. With the airport, surrounding regions gained huge popularity as residential hubs.

With more development coming up, in the form of proposed infrastructure projects would play a big role in shaping the future of Bangalore realty sector.

Update yourself about real esate news by following Dreamz Infra Review blog

bangalore real estate - 23:05

Latest Trends in Bangalore Realty Sector

The last year failed to impress the customer sentiments in the nationwide realty network. Things were not much different for prominent reg...

dreamz infra bangalore - 22:39

Happy Republic Day - Adreamz Infra Reviews

Adreamz-infra-reviews

It is being contemplated by the Securities and Exchange Board of India (SEBI) to make Real Estate Investment Trust (REIT) a novel investment mechanism. Basically, what a REIT does is it owns and manages income-generating developed property. Furthermore, it is designed to offer common units to the public as an investment option. These units symbolize ownership in the business of managing income-producing properties.

It has been observed that REITs will in future provide an opportunity to real estate developers to commercialize developed property, thus providing an exit avenue. What else it will do is also provide overleveraged companies an opening to deleverage. Moreover, it will increase the profundity of the Indian real estate market and provide extra liquidity.

RealEstate-Investment-Trusts-adreamz-infra-reviews

Through a regulated mechanism, REITs will also allow people to channelize their investments into India's realty sector. It makes an ideal choice for investors wanting to invest in real estate without the botheration of checks on property titles and the excess of regulatory approvals since the investment in REITs is asset-backed. Moreover, REITs are expected to infuse a fresh lease of life into an otherwise choppy market while considering the current economic slowdown and paucity of funds.

Uneven Road to REITs
The draft SEBI (Real Estate Investment Trusts) Regulations, 2013, seems to be well thought out. But the fact is that there is still much to be done to make the REIT structure commercially feasible. What are being considered as the major road blocks are foreign investments in REITs, taxation of REITs and stamping of agreements relating to transfer of property to the REITs. Apart from these problems, there is also an urgency to fix the following issues to make the REIT regulations workable.

One of the essential grounds of the draft REIT regulations is the need to provide an exit path and liquidity. But the definition of "real estate" seems rather thin. The definition of "property" or "real estate" must be broadened to include all residential and commercial property and completed infrastructure assets such as highways and roads that have a regular income flow.

Policy Marshland
What this policy will do is it will give a broader coverage of REIT regulations to supply to the funding requirements of not just real estate but the wider infrastructure sector in India too. Moreover, the sponsor eligibility condition of five years' experience in the real estate industry on an individual basis must be broadened to make sure non-core real estate players like hospitals, hotels and other corporate houses with real estate to participate in REITs as well. According to the draft REIT regulations, it makes sure that a REIT cannot undertake an initial public offer without the prescribed minimum asset value.

dreamz infra bangalore - 22:32

The Need for Real Estate Investment Trusts in India

It is being contemplated by the Securities and Exchange Board of India (SEBI) to make Real Estate Investment Trust (REIT) a novel investm...

In a recent a report by Liases Foras, a real estate research firm revealed that in the last year, most of the apartments sold are priced below Rs.5,000 per sq. ft. in cities like Bangalore, Mumbai, NCR, Pune, and Chennai, where almost three out of four homes sold are priced alike. The data also showed that around 73 percent of the total sales in these areas were priced below Rs.5, 000 per sq. ft., whereas Bangalore and Pune saw total sales of 84 percent, which was the highest.

The figure give by the data was like this, where Chennai comprised total sales of 78 percent in Chennai, NCR witnessed a sale of 80percent under this category, and whereas the Mumbai Metropolitan Region (MMR) saw a total sale of 42 percent under this segment, which was the lowest.

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Lalit Kumar Jain - chairman of Confederation of Real Estate Developers Association of India, a builders' association said that people in this segment realise understood that prices will increase in future and this kind reasonable price will be difficult to get.

The report also said that property prices increased between 2010 and 2012 and over the past one year prices are steady in most places and in some places it has dropped.

Another data by National Housing Bank (NHB) Residex showed that the quarter to September saw decline in prices in 10 cities and in 12 cities the price raised marginally. In the NCR the prices declined by 4.5 percent and in Bangalore prices dropped 1 percent.

The data by Liases Foras also showed that around 711 million sq. ft. of homes continued to remain vacant in the country by the end of September and in just one quarter 41 million sq ft of vacant homes increased.

Shiv Priya - Executive Director of Amrapali Developers said that since the prices have reduced in recent quarters people in this segment are still buying and developers are offering discounts and schemes to attract buyers and also added that post general elections the property prices will increase.

RV Verma - Chairman of NHB said the need of loan in this segment is fairly lower and much more reasonable. Prices correction has also taken place; hence, people think it is the ideal time to buy a house.

Indiabulls Housing Finance gave a data, which showed that 80 percent of home loans account in this segment and more people in this segment are working in the middle management of companies with a job continuity viewpoint.

Gagan Banga - Managing Director and Chief Executive Officer of Indiabulls Housing Finance said that people in this segment are with job secure that has encouraged them to buy property.

dreamz infra bangalore - 04:40

Homes Sold Utmost are Priced Below Rs.5, 000 Per Sq. Ft. In Metros

In a recent a report by Liases Foras, a real estate research firm revealed that in the last year, most of the apartments sold are priced ...

In a recent report by NHB Residex, the Indian property prices saw a slow increase abruptly. The survey done in 15 major cities across the country by the NHB Residex showed that the house price in increased minimally in 9 cities and dropped in 6 cities all through the year to end-June of 2012. But, when the house prices were adjusted for inflation it was observed that only in 4 cities house prices increased and in 11 cities house prices dropped.

New Delhi
According to the National Housing Bank (NHB), in the year to end of second quarter in 2012, New Delhi witnessed increase in house prices by 17.01percent, which was the lowest annual price increase since the fourth quarter of 2010. However, when the house price was adjusted for inflation, the increase in house price in Delhi was only by 6.23percent.

Mumbai
In Mumbai, house prices increased by 8.84percent during the year to end of second quarter of 2012, and when adjusted for inflation the house prices in Mumbai accounted to -1.18percent.

Pune
Pune recorded highest increase in annual house price by 33.33percent and by 21.06percent when adjusted for inflation y-o-y to Q2 of 2012.

Jaipur
Jaipur also witnessed strong increase in house prices by 21.88percent and 10.65percent when adjusted for inflation during the year to end-June of 2012.

Chennai
Chennai recorded sturdy increase in house prices by 24.6percent and when adjusted for inflation, the increase in house price resulted to 13.12percent.

Kochi
On contrary, Kochi City in Kerala saw a huge drop in annual house price that accounted to 31.78percent and when adjusted for inflation it resulted to -38.06percent.

Bhopal
Bhopal observed drop in annual house price by -7.59percent and adjusted-inflation was -16.10percent during y-o-y to Q2 of 2012.

Hyderabad
Hyderabad witnessed drop in annual house price by -6.59percent and adjusted inflation was by -15.19percent during the same period.

Patna
Patna recorded a drop in house price by -4.11percent in the year to end second quarter of 2012 and the adjusted-inflation was -12.94percent.

Surat
Surat saw a drop by -2.58percent in annual house price and the adjusted-inflation was -11.65percent in the year-on-year to second quarter of 2012.

Faridabad
Fardiabad observed fall in annual house prices by -1.36percent and the adjusted-inflation was -10.45percent in the year to end-June of 2012.

Lucknow
Lucknow City saw a rise in house price by 6.88percent in the year to end-June of 2012 but the adjusted-inflation was -2.97percent.

Kolkata
The annual house price in Kolkata increased by 1.03percent but the adjusted-inflation was -8.27percent during the same period.

Ahmedabad
The city of Ahmedabad followed Kolkata, which showed an annual increase in house price by 2.96percent and the adjusted-inflation was -6.52percent.

Bengaluru
Bengaluru recorded an annual increase of house price by 8.70percent, but when adjusted for inflation the result was -1.31percent in year to the end of second quarter 2012.

The report released by the NHB Residex as of June 2012 showed that Chennai City had the most expensing housing in India and Kochi with the low-priced.

According to a report of First post, property sales in Mumbai City have dropped by 70percent late-201l against the peak sales in 2007. The figures of unsold units in Mumbai was more than 45percent over the launched the units by late-2011. Alike, drops in demand were observed in other cities as well across the country.

Major developers in the country like DFL and Unitech have decided to cut short new projects for a while.

Boom in housing sector in Indian Realty Industry
The house prices in India saw a brisk increase from 2002 to 2007. The drive in the rapid increase of house price were the strong economic growth and urbanization and in city centers the housing slosh was stimulated by scanty infrastructure, lack of planning and outdated land use laws.

The increase in house prices was accompanied by low interest rates and home loan rates reduced to low rate to 7.5percent in initial 2004 till 2005.

After 7.6percent per annum growth from 2003 to 2004, the economy grew at 8.9percent per annum from 2005 to 2007 that made India has one of the world’s fastest growing country in realty sector.

The rapid growth in major sectors of the Indian economy during the early 1990s fetched a rapid inflow of foreign direct investment into the country. A boom in the Information and Communications Technology (ICT) and BPO industry created rapid employment growth that drive the demand for house and lead to a surge in the construction and telecommunications sectors.

Residential property became considerably less affordable from 2000 to 2006. In 2002, generally the cost of a house in Mumbai was around 85 times the average annual income, which turned out to be 100 times the average annual income by 2006.

Real estate developers’ assets rapidly grew as their property prices increased, which they used it to bid high prices for large plots of land and then sold properties at very high prices.

Recall of Global Catastrophe
During the world economic recession in 2008, developers in India cut prices and announced profitable deals like sponsored furniture and internet connections.

According to a survey done by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in May 2009 showed that demand for luxury homes dropped by 50percent and affordable housing demand dropped by 10percent. During the year to H2 2009, Delhi saw an abrupt drop in house prices by 13.08percent, which made developers to come-up with low-income homes.

However, India’s economy bounced back quickly and house prices started rising again.

Rise in Interest rate could remain
In September 2011, the RBI increased its basis points in lending rates by 25 to 8.25percent, which was the 12th interest rate rise, since March 2010 after it hiked rates from 4.75percent to 5percent to hold inflation.
The RBI’s primary lending rates are also moving up, to a low of 7.50percent and high of 8percent in July 2010 from 11percent and 12percent respectively. As of March 2011, the principal lending rates are 8.25percent as low and 9.50percent as high.

Justifying this, Finance Secretary RS Gujral said that the government is now focusing towards slowing growth and inflation and also added that as the inflation continues to be high at 9.87percent, the RBI may rise the rate again.

The construction sector is already seeing an increase in interest rates by 1.2percent in second quarter of 2011, which fell by 8.2percent from the previous quarter.

India’s small loan market
Regardless of changes since 1991, India’s mortgage market is facing many issues:

Banks choose to offer loans to middle and high-income sectors, giving limited funding options for low-income individuals.
The government has a huge power on chief domestic banks, thereby restricting favoring initiative.
There is no proper legal outline for foreclosures
Title hitches are extensive.

As a result, in 2010 housing loans were only 4.04percent of India’s GDP and the leading mortgage lender being the Housing Development Finance Corporation (HDFC) and the State Bank of India (SBI).

In 2010, total housing loans increased by 8.66percent, which accounted to Rs.3009.29 billion (US$ 61.21 billion) against Rs.2769.57 billion (US$ 56.33 billion) of previous year. Interest rates offered by major banks and financial institutions for floating rate mortgages varied from 10.75percent to 12percent and 13percent to 14percent for fixed-rate mortgages, while the loan to value (LTV) of most Indian home loans is 85percent.

Low rental yields

In the Global Property Guide report, rental yields continue to remain low in India and it was recorded that smaller apartments have higher yields.

Smaller apartment prices at Mumbai are around US$11,600 to US$14,000 per sq. m and yields are meager at 2.52percent to 2.76percent.
Smaller apartment prices at Delhi prices are cheaper at US$4,000 per sq. m. and yields are also low at 1.71percent to 2percent.
Annual yields in Bangalore are fairly higher than in Mumbai and Delhi and the yields ranged from 3.48percent to 4.19percent.

According to Colliers data, residential rents from Q1 to Q2 2011:

In selected Mumbai areas, rents increased from 2percent to 5percent.
Bengaluru major residential property rents increased from 3percent to 7percent.
Delhi prime residential property rents increased by 2percent – 4percent
Rents in Chennai increased by 2percent to 5percent, because of rising demand and lack of residential properties

IMF sated that a viewpoint is remarkably indeterminate:
According to the International Monetary Fund (IMF), the Indian economy grew by an average of 8.3percent per year from 2003 to 2010. But, the country’s real GDP growth dropped to 7.2percent in 2011 and subdued in 2012.

The real GDP expanded by 5.5percent y-o-y, during the first quarter (April-June) of the fiscal year 2012-13, which was the decades worst Q1 performance.

The IMF reviewed its GDP growth forecast this year for India to 4.9percent from 6.1percent. Similarly, the World Bank reviewed its GDP growth forecast for the country to 6percent in 2012 against the previous forecast of 6.9percent. On the other hand, the Reserve Bank of India (RBI), reviewed the GDP growth by 6.5percent this fiscal year.

The exports and imports in the country fell by 9.7percent and 5.08percent that accounted to Rs.2 trillion (US$38 billion) respectively and resulted in a wider trade deficit of Rs.831.3 billion (US$15.7 billion). India’s present account deficit stood at 3.9percent of GDP during the quarter end-June of 2012.

According to IMF, the country’s total fiscal deficit was 9percent of GDP in 2011 and it may increase to 9.5percent in 2012 and may drop faintly to 9.1percent of GDP in 2013.

According to Bloomberg, from 2006 to 2011 the average inflation was 8.7percent, which was an abrupt against the average inflation rate of 3.9percent per year from 2000 to 2005.

The IMF said that the viewpoint for India is remarkably ambiguous, hence monetarist policy should stay on hold until a continued decrease in inflation happens.

Restoration of economic policy
After Prime Minister Man Mohan Singh was re-elected in 2009, the government eased economic policies and gave way to more foreign investment.

The economic policy revamp includes the following:

A 51percent stake in multi-brand retail stores are allowed for foreign companies
The cap in broadcasting agencies on foreign stakes has been upraised to 75percent from 49percent
49percent of national airline carriers are allowed to foreign investors.

In order to tackle the country’s budget deficit and taper the deficit to 5.1percent of GDP this fiscal year ending in March 2013 from 5.8percent of GDP of previous year, subsidized diesel prices have been raised by almost 14percent, which is the first rise in 14 months.

dreamz infra - 04:50

A Summary of India’s Realty Market Data

In a recent report by NHB Residex, the Indian property prices saw a slow increase abruptly. The survey done in 15 major cities across the ...

Placed in central part of the city, Chennai’s Kodambakkam is recognized as one of the full-fledged localities and currently it is witnessing rise in demand for multistorey apartments. According to a recent data of Magicbricks.com, the region has recorded 67% demand for multistorey apartment over the last three months.

The reasons behind this sudden spur in demand are:

Demand versus supply
Being a well-established region, the lack of land is one of the major reasons for the demand. The data by Magicbricks.com revealed that in the third quarter of 2013 (Jul-Sept), the region witnessed 67% in demand but the supply was only 34%, which shows the variance between the demand and supply.

Preferred Location
Mr. Venkat Reddy of Vshagna Developers and Dealers says that Kodambakkam locality houses well-to-do people of Chennai that include movie directors, producers, television stars, and famous musicians, as many Tamil movie studios are located in and around the locality. With the provided statistics of Magicbrick.com, Kodambakkam has seen a rise of 6% in Jul-Sept quarter of 2013 and presently, the property prices in and around the locality ranges between Rs.7,500 and 8,600 per sq. ft.

IT hubs and social infrastructures in the locality
The reason behind the drive in the demand is also the social and civic infrastructures in and around the locality that includes a number of schools and colleges hospitals and nursing homes that offer 24 hours medical facilities. Furthermore, the location is close to many IT companies, malls and local as well as is provided with cyclical and well-developed amenities such as drainage and sewerage system.

Accessibility
This locality is also easily accessible to many other hotspots in and around the city; it is also close to Grand Southern Trunk Road (GST), which connects it to the other parts of the city. This area is also well-connected to major city centre areas, such as Nungambakkam, T Nagar Vadapalani and Koyembedu that are just 5 to 15 kms away. On the other hand, Kodambakkam is only 4 kms from the Chennai centre, 12 kms from the Chennai International Airport, and 29 kms away from railway station. Ingersoll Surya of Property Shoppe says that the Rangarajapuram flyover also serves as ease traffic conditions for Kodambakkam. Some owners in the locality say that the region is ideal for residential living as it presents security, infrastructure and easy accessibility.

The sudden surge in demand in the Kodambakkam locality shows that the growth in real estate in any locality largely depends on the civic and social infrastructure, connectivity, which the buyers more often look for while buying a property.

dreamz infra bangalore - 01:06

Rising Real Estate Demand in Kodambakkam - Chennai

Placed in central part of the city, Chennai’s Kodambakkam is recognized as one of the full-fledged localities and currently it is witnessi...

There is a glut of office spaces with the country’s economy slowing down. This in turn, has pushed freezing development, up vacancy rates and prompted some builders to change commercial projects into housing establishments.

It is believed that the demand for offices in India has been on a steady decline. It faces the gentlest development in a period of 11 years. In the three months to September 30, new supply in India’s seven major office markets, which includes Hyderabad, Bangalore and Mumbai, fell to a low.

Reduced Demand

About two years ago, India was the favorite of the global investors. In the year ended March 2011, the economy expanded more than 9 percent. According to CBRE, which started gathering data that year, it stimulated 55 million square feet (5.1 million square meters) of new office space across India’s key cities in 2010.

With the economic growth falling by 50 per cent, and investors expressing very less faith in the government which was fighting corruptions, the building boom ended with that.

Cheaper Rents

The rents are less costly owing to the increase in empty office space in New Delhi and its surrounding areas, like National Capital Region, and Mumbai. According to a data by Jones Lang LaSalle, average prime office rents in Mumbai’s Bandra Kurla, was $581 per square meter a year. On the other hand, rents in Delhi were $374 per square meter. Whilst rents in Hong Kong was the highest at $1,486. This was followed by Beijing at $1,004.

Price Correction

According to an executive from Jones Lang LaSalle India, in the third quarter of 2008, Indian cities did not recover from the rental and price correction of between 20 percent and 40 percent. Moreover, what kept the prices and rents in check was the oversupply created in Indian cities.

According to CBRE, Bangalore, which is an established technology hub of India, has the largest office market in India with about 100 million square feet.

Bangalore – The CBRE also stated that Bangalore which is home to Qualcomm Inc., and Texas Instruments Inc., – has posted the sharpest deterioration in office space. Whereas, the NCR witnessed an 80 percent slide.

Rising Vacancies

What are prompting the developers to put off projects is the declining rents and rising vacancies. DLF Ltd. (DLFU), which is India’s biggest publicly listed builder, is presently holding off building new office towers until it witnesses a recovery in demand.

Turning Residential

In order to counter the decline in demand, there are some developers, like Oberoi Realty Ltd. (OBER), India’s second-largest by market value, who are considering converting plans to build offices into residential buildings.

Already, many developers have converted their commercial projects into residential owing to the fact that they provide positive cash flows upfront.

Economic Outlook

According to Cushman, It has been noted that DLF switched to plans for housing from office for a 17.5-acre (7-hectare) plot in central Mumbai before deciding to sell it to the Lodha Group last year.

According to a survey by the Reserve Bank of India, the country’s economy may expand 4.8 percent in the year through March 2014. This will be the slowest since 2003. From a year earlier, Gross domestic product rose 4.6 percent in July through September.

Bangalore Offices

However, not every builder is hesitating from adding supply. RMZ Corp., which is the largest office developer in south India, is still building offices outside of the central business district in Bangalore. Bangalore is home to Goldman Sachs Group Inc.’s third-largest office globally too.

dreamz infra bangalore - 03:18

With Vacancies That Are In Surplus, India Office Boom Turns Glut: Real Estate

There is a glut of office spaces with the country’s economy slowing down. This in turn, has pushed freezing development, up vacancy rates ...

bangalore property sales - 04:24

Non-IT Estimated To Take a Big Bite of Bangalore's Property Sales

It is believed that the ITeS and IT sectors' tight hold on Bangalore's residential real estate market has noticeably loosened ove...

Real estate sector has been very badly affected by liquidity tightening in the banking system, the rising interest rates and slowing down of economy. It has also been noticed that the demand for residential realty has come down. With regard to this, the prices across the markets in India have started showing a downward trend.

According to a CMD of National Housing Bank (NHB), he stated that rising interest rates have badly affected the demand from the end-users. Moreover, this has led to a rise in the inventory of unsold property. The fact is that the builders have complete the already started projects as well as meet the loan repayment liability. Hence, they find it more practical to cut prices to sell the units and create cash.

Amongst the 26 cities surveyed by the NHB, around 22 cities, during the April-June quarter saw a drop in property prices. This was as compared with the first quarter of the calendar year. It is believed that it would be the first time that in recent years the residential unit prices have fallen in many big cities. It is also considered as a sign of developers opting to cuts to shoot up demand in a slowing market.

According to the NHB Residex, as compared with the previous quarter, in April-June 2013 the biggest price fall was seen in Ludhiana, of 5.99 per cent which was followed by other cities. The CMD also stated that the downward trend in the realty market was good for both end-users as well as builders. Moreover, the investors are absent as the price of money has gone up and the chances of making money in the short-term are not very promising. However, it will be a positive development for end-users to buy house.

The CMD also stated that if prices came down, transactions would increase. This would improve the cash flow in the sector. When in 2008 and 2009, the whole country was twirling under the global financial crisis, real estate came out of it intact. It was primarily because of the fact that the strategy adopted to increase turnover and cut prices.

dreamz infra bangalore - 03:34

Property Prices Seeing a Plunging Trend in India

Real estate sector has been very badly affected by liquidity tightening in the banking system, the rising interest rates and slowing down ...

Bangalore

Economic slowdown has cast a shadow on Bangalore’s housing market, with the rising cost of living and poor salary increments forcing an increasing number of IT professionals in the city to put their upscale homes on sale.

Gen Y techies, who had invested in apartments, row houses and bungalows in Bangalore — India’s IT capital, some 15 years ago, are now finding it difficult to service their expensive home loans or even maintain these houses amid falling rental yields. Resale inventory in this housing segment has grown 30-35% over the last six months, according to property portal CommonFloor.

Six of every 10 such properties are owned by IT executives, up from around four about two years ago, it said. “The booming real estate market was a major incentive for techies, but now that salaries are not going any higher, inflation is getting the better of these people, they are feeling the heat and the burden of hefty EMIs,” said Mohandas Pai, the former CFO and head of HR at Infosys, who has seen the IT industry grow in Bangalore over the last 20 years from close quarters.

“Now they are eager to get rid of any excess property they possess while they can still getting a good deal,” added Pai, who is chairman of Manipal Global Education. Since 2001, the city has seen an addition of 350,000 apartments, about 8% of which are now up for sale. During this period, about 45,000 villas and penthouses were added to the city and 8% of these are now in the resale market.

“These properties would fetch a huge premium now, running into a crore or more. Why not sell them off,” said Kalpana Murthy, associate director — residential services at Cushman & Wakefield, a property consultant.

Bangalore’s realty sector had witnessed steady investment by salaried IT professionals till a few years ago, with well-paying jobs making even a second or third home affordable for some. Around this time, real estate prices were low and the return expectation high, which helped push up rentals. That demand, however, began to peter off as recession set in, hitting company bottom lines and employees’ salaries. Salary increments in the IT sector this year have been in the 6-8% range, compared with a minimum of 15% between 2007 and 2010. Adding to the gloom is IT industry body Nasscom’s forecast that the domestic IT sector could generate 50,000 less jobs this year, down 17% compared with last year.

“Looking at the appraisals for the year, I stalled my shifting plans, which would only increase my expenses,” said 35-year-old Ankit Jain. The Accenture employee recently sold his 1,500 sq ft, three-bedroom apartment on Sarjapur Road, which he had bought in 2009, for twice the purchase price. But not everyone is as lucky. With several such professionals in the market to sell, and builders launching new projects every month, Bangalore is facing an oversupply of sorts while demand has been dropping steadily. “The market is certainly slow and sellers are finding it difficult to find buyers.

The slowing economy and rising inflation is making matters worse,” said Srinivas Reddy NS, senior manger — research at Jones Lang LaSalle, another property consultant. Home sales across the country have been slipping over the last few quarters. According to property research firm Liases Foras, new home sales in Bangalore in the June quarter were down 23% from a year ago. Another techie, Shameer VK, 35, who works with Cisco and lives in a 2,000 sq ft apartment in Marathalli, said his home is “too lavish”, given the current economic scenario.

“I bought my apartment for close to Rs 50 lakh in 2008, and I pay an EMI of Rs 39,500. A similar house in the same project now goes for Rs1.3 crore,” Shameer said, adding that if he is able to find a buyer for his flat, the money will help him pay off his debt and also buy a smaller property in the neighbourhood. The housing resale market in Bangalore is dominated by peripheral localities in the east and south of the city, which are close to major IT hubs.

According to Sumit Jain, chief executive of CommonFloor.com on Sarjapur Road, which is equidistant from Whitefield and Electronic City, more than 11% of all properties are available for resale. At Whitefield and Bannerghatta, it is 10.9% and 6.9%, respectively. Marathalli has 4.9% while JP Nagar has 4.6%. With the rupee having fallen sharply against the dollar, experts say it could be an opportunity for non-resident Indians who are repatriating dollars.

Source - TOI

dreamz infra bangalore - 02:40

Resale housing inventory rising due to economic slowdown in Bangalore - Dreamz News

Bangalore Economic slowdown has cast a shadow on Bangalore’s housing market, with the rising cost of living and poor salary increment...

The government has recently introduced the Real Estate (Regulation and Development) Bill, 2013 in Parliament. Once voted into law, the Bill will set up a strong regulatory architecture for the residential real estate sector with strong provisions for consumer protection. HT takes you through the details:

Why is there a need for regulation in the real estate sector?

The real estate sector plays a catalytic role in fulfilling the need and demand for housing and infrastructure in the country. While this sector has grown significantly in recent years, it has been largely unregulated, with absence of standardization, and lack of adequate consumer protection, which has constrained the healthy and orderly growth of the industry.

What are the most important provisions of the Bill?

The proposed Bill applies to residential real estate—housing and any other independent use ancillary to housing. However, it is important to know that the Bill only intends to regulate ‘transactions’, that is, buying and selling of residential real estate, and does not intend to regulate ‘construction’ which is the domain of states and urban local bodies. The Bill is aimed at infusing the much-lacked transparency in the sector and provides for mandatory public disclosure of all project details, with specified functions and duties of the promoter.

What about dispute settlement and grievance redressal?

The Bill provides for establishment of Real Estate Regulatory Authority and Appellate Tribunal for a speedier dispute redressal mechanism.

What does the Bill stipulate for regulation of intermediaries in the sector?

One of the provisions of the Bill is the mandatory registration of real estate agents, which so far have been unregulated, with clear responsibilities and functions. The Bill also contains strong penal measures including imprisonment of promoters to clamp down on non-compliance and flouting of norms and rules. The punitive provisions include DE-registration of the project and penalties are provided in case of contravention of the provisions of the Bill or the orders of the Authority or the Tribunal.

Is it a populist move, with realtors’ body CREDAI saying the proposed law should govern all stakeholders of the industry and not only the developers?

There has been a need for a real estate regulator, on the lines of telecom or those related to the financial sector including capital markets and insurance. Lack of regulation, it is sometimes pointed out, has slowed down domestic and foreign investment into the sector, which could have contributed to enhanced activity, and increase in GDP growth. The Bill regulates ‘transactions’ in the sector, and thus all the stakeholders involved in the ‘transaction’ — the promoter/seller, the allotte/buyer and the real estate agent, all three are regulated under the proposed Bill, with specified functions and duties.

Why doesn’t the Bill seek to regulate construction?

The Bill does not regulate ‘construction,’ which is the domain of States and urban local bodies. The main concern of the developers is the need for a single window system for project approvals and clearances, for which the ministry of housing and urban poverty alleviation-has constituted an Expert Committee represented by industry bodies to recommend to the States on ways and means to set up a single window system. As far as the Real Estate Bill is concerned, its mandate is limited to transactions, and thus regulates all parties involved in it.

Why is there a concern that the Bill, once passed in Parliament, would result in about 30% rise in realty prices?

According to the government the Bill is aimed at consumer protection, by creating an online system for information-sharing so that there is mutual trust between the developers and the buyers, and to ensure projects implemented in time. The enactment of the Bill will lead to enhanced activity in the sector, leading to more housing units supplied to the market. In the government’s opinion, the Bill will bring in the much-needed confidence to infuse more investment and, in turn, stabilize house prices.

Commercial real estate property is not covered under this regulation. Why?

The proposed Bill only regulates the sale of residential real estate, and not its development. The promoter is free to carry on development, but what the Bill provides is that he can only sell after all approvals are in place and he has registered his project with the regulator.The registration requirements under the Bill are on a real-time basis, which does not lead to another layer of approvals. According to the government, limiting the application of the Bill to residential properties is to ensure the focus of the regulator on the retail consumer.

Registration will not be mandatory for projects below a certain threshold. Does it not mean that many small developers will escape from registration and the government regulator’s control?

The initial draft had provided for 4,000 square meters, which later has been reduced to 1,000 square meters or 12 apartments, whichever is applicable, after extensive consultations with the states and other stakeholders.

Developers are selling flats on the basis of super-built area, which includes common passage area, stairs and other areas resulting in 20-30% more than the actual flat area. How does the Bill address this aspect?

According to the Bill, disclosure of the number of apartments for sale by the promoter has to be based on a defined carpet area. The buyer should know what he is actually getting and paying for. The Bill intends to standardize the requirements to reduce the asymmetry prevailing in real estate transactions.

When will the Bill become law?

The Bill has been referred to the Parliamentary Standing Committee. The Bill will be taken back to Parliament after the committee submits its report.

Source: hindustantimes.com/business-news/BusinessRealEstate/Building-trust-the-real-estate-bill/Article1-1113821.aspx

consumer complaints - 23:03

Strong Measures for Improvement: Real Estate Bill Reviews

The government has recently introduced the Real Estate (Regulation and Development) Bill , 2013 in Parliament. Once voted into law, the ...

The realty sector can more than double its contribution to GDP to 13 per cent by 2025 on rising housing demand, if the government removes bottlenecks in infrastructure, lowers borrowing cost and makes process of approvals shorter, global property consultant CBRE said.

The share of the real estate sector in GDP is likely to be 6.3 per cent in 2013, CBRE said in a report titled ‘Assessing the Economic Impact of India’s Real Estate Sector’.

The size of country’s gross domestic product (GDP) was USD 1.8 trillion in 2012-13 fiscal.

The report projected that the realty sector will generate employment for 17.2 million people and supply 8.2 million sq ft by 2025, more than double the figures for the current year.

“India’s real estate sector is poised for significant growth in the coming decade as it benefits from significant opportunities such as increasing urbanisation, demand for new housing and the expanding urban fabric of tier II and tier III cities in the country,” CBRE said in the report.

That sector, however, faces numerous challenges like high borrowing costs, slow and uneven infrastructure development and lengthy approval processes, the report said.

“Once these bottlenecks are addressed, we can expect the economic contribution of the sector to increase considerably, with its share of the GDP to more than double from 6.3 per cent in 2013 to almost 13 per cent by 2025,” it added.

Commenting on the report, CBRE South Asia Chairman and MD Anshuman Magazine said the sector has the potential for significant growth provided country’s economic growth does not stagnate and these bottlenecks are removed.

The real estate and construction sector would continue to remain one of the largest employers in the economy, CBRE said, adding the annual employment opportunities generated in the sector are expected to increase from 7.6 million in 2013 to almost 17.2 million in 2025.

The annual real estate supply in India is expected to increase from about 3.6 billion sq ft in 2013 to about 8.2 billion sq ft in 2025. Majority of this space is expected to be concentrated in the residential sector.

Urbanization in India has been increasing at an unprecedented rate, with almost 71 million people being added to the urban population from 2001 to 2011. At this rate, close to 534 million people will live in Indian cities by 2026. This offers tremendous opportunities for real estate development

Source: realtyfact.com/realty-sector-can-double-its-share-in-gdp-to-13-by-2025-cbre/

consumer complaints - 02:38

A positive GDP growth of 13% cited by 2025 : CBRE reports

The realty sector can more than double its contribution to GDP to 13 per cent by 2025 on rising housing demand, if the government remov...

A quiet hike on guidance value by 40%-50% on official land cost by the government of Karnataka would make buying property costlier. Following suite Bangalore's rates will be revised by August 1.

This move has increased the guidance value in 20 districts till now said Inspector General of Registration and Commissioner of Stamps Syed Adoni Saleem.

Governments revenue will also witness an additional revenue boost of Rs. 1,000 crore. The proposed increase on stamps and registration duties marginally will rack in almost Rs 500 crores to their kitty, sources said. By the upcoming budget.

Explaining further Saleem informed nine districts already has revised rates, including Dharwad and Mysore, by June 1. The revise in prices was effective in another 11 districts by July 1. Four other districts including Bangalore will come under changed prices by August 1 final phase of the revision.

This hike over the guidance value has drastically increased the prices of residential sites, commercial properties and industrial properties by 50%,60%,25% respectively.

The price increase is supported by justification from the authorities stating "The proportionate increase in the value of land along with unprecedented growth of secondary cities.

The decision directing the local valuation committees to increase rates to fund its populist schemes from the state government was directed through a gazette notification vise June 13, It had specific guidelines over the valuation of the gated communities property and also along the state and national highways.

Effects post the increase in guidance value:

Variation over the guidance value would be between 40% - 50%

No increased trends since past 4 years.

20 districts already subjected to the hike over guidance value.

Marginal increase over the stamps and registration duties.

Sustaining further would need drastic measures like loan waivers, increased subsidy for construction of houses under various schemes. Were money being the major player, with anticipation over further available alternatives.

Follow Dreamz Infra Review regularly for more updates.

dreamz infra bangalore - 05:07

Bangalore Real Estate to witness Hike in Guidance value by Aug 1

A quiet hike on guidance value by 40%-50% on official land cost by the government of Karnataka would make buying property costlier. Fol...

dreamz - 23:55

New to Bangalore? Find your dream Flat here

Dreamz Infra India Pvt Ltd. Bangalore New to Bangalore? Searching for property in Bangalore? Here is some valuable information how...

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