Bachelors in Chennai are increasingly opting for apartments

 

Relocating to a new city is always a tedious task. There are many issues one has to deal with, right from understanding a new language to adapting to the environment and most importantly, choosing a home.

Earlier, to avoid the entire process of hunting a house, youngsters chose to move into a PG or hostel located close to their college or workplace. However, in the last few years, the city is seeing a changing trend, where people from the age group of 18 to 30 want a space of their own.

The reasons are many, one being affordability, especially among college students. Instead of paying an entire year’s hostel fees, college students like Annette Francis, an engineering student, are opting to rent an apartment near the college. “During my stay in the college hostel, I had to pay the entire amount at the beginning of the year. Now that I have rented an apartment, I pay a small part of the rent every month. And if you are sharing the house, the rent gets divided, reducing the living cost,” she shares. Another factor that leads most students to move out is the strict timings. “We have to be back at the hostel by 7pm, making it difficult for students who have work in the city to return to hostel on time,” Annette adds.

While women in the city have good options to choose from when it comes to hostels and PGs, men find it difficult to find a decent hostel accommodation. Thus, adding another factor to the trend catching up. “The quality of men’s hostels and PGs is not good in Chennai. They might offer air conditioned rooms and other facilities but the rooms are cramped. There is hardly space to set up two beds and a table. And to add to this, most of these PGs are situated in congested localities with minimal or no ventilation,” shares Karthik Krishna, an IT professional. Like Karthik, many bachelors are left with no choice but to take homes on rent.

With new IT corridors opening up in the city and more homes being available to choose from, agents and brokers are receiving queries from bachelors for homes on sharing basis. “Youngsters want homes in gated communities and societies as it promises them security. With amenities available in many projects, tenants weigh factors like comfort, apart from cost, while choosing a house. Looking at the rise in the trend, many home owners are now open to the idea of accommodating bachelors in their homes,” says M D Palanivelraj, proprietor of Avinaash Realtors.

According to Shanmugan Sundaram, a house owner, who has rented out his apartment in Amjikarai, landlords are particular about two things. “Home owners want tenants who can treat and maintain the home as their own and return it to us in good condition while vacating. Landlords want occupants who do not create any problems for others living in the society or building. Most house owners stay far away from the property rented out so they do not want to be called time and again to sort out problems between their tenants and society members. When we get good tenants, we are ready to rent it out to them,” he shares. This trend is a good sign for the rental market in Chennai.

Source Dishya Sharma, Times Property, The Times of India, Chennai

West Chennai grows due to infra development

What increases the market value of your property

 

The factors that affect your land valuation

Value is the esteem in which the piece of land you own is held or it can be sold out under market conditions. The higher the esteem, the greater is the value and the exchange power of the land. Assessing the present worth of your land and making an estimate of its value in future, is very important before you seal the deal. After all, buying a plot is a long-term investment that involves monetary returns.

The face value of the land is derived from the social and physical infrastructures emanating from it. In urban or suburban areas, the value is mainly linked to the type and nature of the services that can be generated from the piece of land.

What affects the value of your land?

“The location, surroundings and infrastructural development are the major factors that define the value of a particular land or region. In fact, good connectivity is a prime factor in the success of any real estate venture or appreciation of a land. Connectivity through road is directly proportional to the quality of life and it affects everyone’s life. Good quality of roads reduces the travel time between places,” says Aman Agarwal, governing council member NAREDCO & director, KV Developers.

“Well-planned physical and social infrastructure and promising real estate development makes the area potential. Being near the Metro train network has been a game changer in many localities and has changed everything by ensuring an easy commute and faster accessibility. Government policies have always been a major push to enhance the value of a particular land,” added Agarwal.

In order to help buyers, Magicbricks has compiled the key factors and their impact on land valuation:

Location: Location of the land is an important factor. The site plays a key role as it decides the face value of the land. Plots can be located in a gated community or on a barren highway. It may be agricultural land that can be used for productivity.

If it is a gated community, the location is well-established, so it will have a higher value. The plot is also under security of the community, so whoever buys it, has no worries about the illegal interventions of any third party.

Surroundings: After location, the second influencing factor is the surroundings. The establishment of the nearby areas also affects the market rate of the plot. The cost of land varies according to the facilities and social infrastructure available in the surroundings. The neighbouring localities and their development also affects the rates of any property. Prospective buyers would always opt for options that avail them better facilities with a cheaper price.

Connectivity: Connectivity also determines the price of any property. The value of a plot is estimated based on how and what can be generated from it in future. Better road and rail connectivity within the vicinity of the locality can add value to the piece of land. Interlinking of nearby areas by roads gives buyers a reason to invest, which have good rate of returns.

Social Infrastructure: The availability of social infrastructure around the plot is the most important aspect as it enhances the property value. Plots, which have well-established social infrastructure with proper hospitals, schools, markets and other necessities plays a major role in the lifestyle of the consumers. A good inspection of the locality can fetch you a great deal. All you need to do is analyse, explore and then decide.

The value of a property rises when there is development round the corner. The demand-supply scale automatically witnesses a hike, also adding value to the prices of the property. According to the Magicbricks data, in Chennai, localities like Old Mahabalipuram Road (OMR), Porur and Guduvancheri saw a rise in the demand for plots in the last quarter. West Chennai has comparatively good demand for plots across the city. The reason is the overall growth of the area.

“Easy accessibility and a good transportation system are the basic factors that drive the demand for properties. Although the real estate market has dipped a little after the floods, plots ranged between Rs 50 lakh to Rs 1 crore are mostly in demand in Chennai,” says Syed Rahman, a real estate agent from Rahman Properties.

Any new projects and plans contribute to the land valuation. A piece of land located near an upcoming airport, metro or railway station would be costlier than a plot available in any other area. Higher the demand, higher will be the land value.

Determine if the plot, where you are planning to buy, has the necessary infrastructure to build your home. After all, land investments give you the best returns. So, make a choice by determining the plot, considering the factors that affect the value of your investment.

Souce – Sukriti Yaduwanshi, Magicbricks Bureau

How the Real Estate Bill will benefit buyers

real estate bill 2016

The real estate bill slated for passage in the Upper House on Thursday after the Congress indicated its support for the legislation, seeks to set up a Real Estate Regulatory Authority in states and federal territories to oversee real estate transactions.

The real estate bill seeks to set up a Real Estate Regulatory Authority in states and federal territories to oversee real estate transactions. It will help regulate sector and bring in clarity in terms of who governs/monitors realty projects.The bill is touted as a key reform measure in the vast real estate sector.
Here is how the new real estate bill will benefit consumers
1) As of now the real estate sector was largely unregulated in India. If a consumer had a complaint against a developer he would had to make rounds of consumer or civil courts. Also absence of standardization and lack of adequate consumer protection has constrained the healthy and orderly growth of the industry. Not anymore. Once the bill becomes an Act, in case of any grievance, the consumer can go to the real estate regulator for redressal.
Read more: Congress on board after tweaks, Real Estate Bill may pass in Parl today
2) The bill will make it mandatory for all commercial and residential real estate projects where the land is over 500 sq. mt. or eight apartments will have to register with the regulator before launching a project. By making registration of the project compulsory with the regulatory authority, the bill aims to provide greater transparency in project marketing and execution. Failure to do so will attract a penalty which may be up to 10% of the project cost and a repeat offence could land the developer in jail.
3) Developer will have to put 70% of the money collected from a buyer in a separate account to meet the construction cost of the project. States can increase the ceiling but not lower it. This will put a check to the general practice by majority of the developers to divert buyer’s money to start new project instead of finishing the one for which money was collected. This will ensure that construction is completed on time.
4) It is likely to stabilize housing prices. 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, stabilise house prices.
5) The bill also seeks to impose strict regulations on the promoter and ensure that construction is completed on time. Its purpose is to ensure that the buyer gets the property as per the specifications that he had been promised
6) Carpet area has been clearly defined in the bill to include usable spaces like kitchen and toilets imparting clarity which was not the case earlier.
7) A developer’s liability to repair structural defects has been increased to 5 years from the earlier 2 years.
8) Real estate appellate tribunals now required to adjudicate cases in 60 days as against 90 days in the earlier proposal.
9) Regulatory Authorities to dispose of complaints in 60 days while no such time limit was indicated earlier.

How it benefits builders:
The builders will also benefit from the proposed legislation, as it proposes to impose penalty on allottee for not paying dues on time. Also the builder will have the opportunity to approach the regulator in case there is any issue with the buyer.
But, builders believe that the bill was heavily stacked against them. The bill provides for penalty, upto 10 per cent of the total project cost or even imprisonment, if builders do not honour their commitment or fail to register themselves with the regulator

How it works in other countries
United States
Real estate in the US is regulated at numerous levels. Therefore, there is no single regulatory body, but rather a series of bodies that regulate different ownership and usage aspects. To safeguard the interest of the end-users, the US. Department of Housing and Urban Development (HUD) has rules under the Real Estate Settlement Procedures Act to protect consumer interests pertaining to residential properties.
Issues related to end users are not a matter of federal regulation. These are dealt with in a legal contract. If a purchaser enters a contract with the developer, and the developer does not deliver on the terms agreed upon in the contract, the developer can be taken to court for breach of contract. In the US, there are state real estate licensing laws and a code of ethics in place.
United Kingdom
There is an absence of a regulator to monitor development.The Financial Services Authority (FSA), which is now part of the Bank of England, regulates almost all investments in real estate. The Property Misdescriptions Act 1991 prohibits the making of false or misleading statements on property matters in the course of estate agency business and the property development business.
Germany
In principle, no regulatory authority exists. According to the German Civil Code, the seller is generally liable to the buyer for damage compensation, if the delivered property deviates from the description in a guaranty or in a brochure. The seller is generally also liable for damage compensation in case of delayed deliverables.
Singapore
Land ownership and planning is primarily controlled by the public sector. Hence, based on the demarcated use, the respective regulatory authority such as Housing Development Board for residential and Jurong Town Corporation (JTC) for industrial will regulate and guide development. Details such as the possession, allotment date and specifications are usually set out clearly in contracts; end users are able to undertake legal means to claim compensations.
UAE
The UAE Government is considering the establishment of a federal real estate regulatory authority. Currently, the government does not have a body to supervise the sector, although emirates like Dubai and Ajman have their own real estate regulatory authorities — Real Estate Regulatory Authority (RERA) in Dubai and Ajman Real Estate Regulatory Authority (ARRA) in Ajman. The Land Department of Dubai is proposing the Real Estate Investor Protection Law.
China
The Central Government introduced a regulation for real estate in 2010, which is more stringent and specific than it has historically been to control the market. The State Department of Real Estate “New State 10”, is a regulation which enforces an accountability system for the local government to stabilize local real estate prices. This is aimed at promoting the construction of affordable housing to promote social development and enforce stability and accountability. On this basis, local governments have introduced their own control rules in Beijing, Shanghai, Guangzhou and Shenzhen.
The sales agreement contract specifies the area of the property being sold. In case of the sale of residential property, a minor differential (generally in the range of 2-3%) in the area is permissible. In case this is not followed, the buyer can legally get a refund from the developer. The mortgage contract is a legal document and provides legal protection to the bank (lender) and the buyer (borrower).
The sales agreement specifies the terms and conditions for sale and determines the legal rights of both the buyer and the seller. Apart from conditions in the sales agreement, there are no other provisions to safeguard end-users.
Source: Realty decoded: Investing across borders by Ernst & Young and Ficci

Tags Real Estate Bill Parliament Real Estate Regulatory Authority real estate transactions
Source Hindustan Times

Good quality houses drive demand in Chennai

 

Chennai may have been hit by the recent floods and poor sentiment has delayed the process of recovery in the real estate market. However, this unfortunate situation has highlighted some developers because of their product strength and innovative development. What is surprising is that there is a silent revolution taking place in some quarters which escaped the traditional analyst’s radar.

There are two sections of developers who are defying market gyrations even in the current scenario. One, those developing affordable housing segments, limited housing development with broader amenities can be done in a better manner. Housing finance companies and banks are driving the demand with their financing.

For affordable housing, areas such as Oragadam, Mahabalipuram and Tirumazhisai are providing competitive land pricing which enables such developers to price their products so they area acceptable to home buyers. Recently, a developer was able to sell 150 apartments in two days of launching which clearly indicates the surging demand for such units.

In fact, the developer has been successful in implementing similar products in multiple locations. Out of 5,000 units, 2,500 units have already been handed over, 1500 units are under varying stages of implementation and 1,000 units are in the planning stage.

Contrary to perceptions, the margin in such products is not unfair but the developer is sitting quite pretty in the current depressed market scenario. In fact, the developer is looking out for more areas for development with emphasis on connectivity and transport facilities.

property investment chennai

The premium segment may have been hit, as reported data estimates the dip by 36 per cent year-on-year in the city. But the perception of home buyers is different. Even today, there is good demand for products with a range of amenities. Smaller developers with inherent desire to bring in the best products and amenities in the industry to home buyers seem to be winners.

An up-and-coming developer could sell a premium product in Thiruvanmiyur without any marketing effort as he could provide value for money in his project. It is not the imported materials that add value to the project but the way in which every inch of space has been judiciously utilised for the benefit of home buyers that tilted the balance. “Price was the last item that was discussed in the project by home buyers”, said a senior executive of the company while narrating demand for such products.

These may be isolated instances but such products and developers amply reveal that there continues to be a growing demand for the right pricing and the right product at all times.

Source V Nagarajan Magic Bricks /Times of India

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