Real Estate Industry

Vertical expansion – Answer to urban land scarcity

India is witnessing an unprecedented growth in urbanization. Better health care facilities and educational and job opportunities are driving people from rural areas to urban centers and resulting in huge population growth. This brings the challenges of land planning and environmental control to town planners. Expanding cities horizontally to make room for all these people will end up destroying more natural resources and therefore vertical growth of cities is being considered as a viable option. Building upward instead of outward enables us to host large number of people in a small area, conserving land and natural resources. The remaining and available land, therefore, could be used to create civic infrastructure for the population living in the locality.

Vertical expansion – Answer to urban land scarcity

The advent of high-rise buildings have also coincided with provision of world class amenities in housing projects. A vertical growth also offers people living on higher floors a panoramic view of the city around and makes life beautiful. A high floor living also avoids noise pollution and other challenges which affect quality of life in low rise developments. Various amenities including car parking etc can be managed in the basement and lower floors to ensure a smooth passageway to walkers. With fast lifts fitted in these buildings there is no challenge in moving between floors. In fact, all the premium buildings in mega cities like Mumbai and Delhi NCR are vertical developments.

Vertical buildings could also offer other environmental benefits. Having numerous services and amenities in the same tower would reduce the need for moving around. This can also save fuel and energy.

These buildings also create social connectivity by making it easier for individuals to socialize in common areas and visit friends. More like minded people in one place also offers opportunities to create micro-communities based on interest in these housing societies, reducing the need to go out and socialize. As more families live in a small foot-print, it is easy to develop social and civic infrastructure in that area as the users are already there.

Earlier people were concerned about multiple inconveniences related to high-rise living. However, with advent of better technology in almost every aspect, these are no more the real challenges. The modern building design and construction technologies ensure that we can keep building higher without worrying about structural safety. In fact, these building designs are more resilient than the traditional low floor construction. Most Indian cities have now 24*7 power supply, resulting in no downtime for various equipments including elevators in these buildings. The building safety norms are in place and following these is mandatory, making these buildings safer. Also, a behavioural factor weighs in, as high rise developments are done only by large developers with help from reputed construction companies, they offer better construction quality than the houses built by part time developers.

Vertical expansion of cities, without a doubt is viable solution to urban land scarcity. For the people who live there, also taste the luxuries of life which are not easily available in low height developments. It is not uncommon to see a prestige associated with this living.

Luxury affordable homes – Mid income home buyers’ choice

Last few years have been tough for Indian real estate market. RERA and GST took a huge toll on the real estate market of India from 2018 onwards and it took a couple of years for developers and buyers to understand the implications and reorganise themselves. The tension in this market was palpable after the liquidation of the Non-banking Financial Companies. The NBFCs had been the main stay of growth in Indian real estate sector for last many years, as they helped bridge the cash flow gaps between the customers and real estate developers. This resulted in customers looking out for houses that can offer modern lifestyle but are available at an affordable price. This gave birth to a new phenomena in Indian housing sector – Luxury affordable homes.

Luxury affordable homes have been a paradigm shift in Indian housing market. While earlier, one had to choose between a house with all modern amenities at a steep price, or a home deprived of any amenity and located in a poor location available at a discounted price. Hitting a middle ground between cheap housing and international amenities, luxury affordable homes are meeting the expectations of new age consumers without charging a premium. It also brings a great hope for mid-income buyers. These are the buyers who could not afford a luxury home with all amenities and wanted a balance between price and facilities offered in a decent location. These customers are well travelled and expected the world standards to be followed in construction as well as surroundings and finishing of their homes. This new segment has met the expectations of these mid income families and customers have supported such projects with enthusiasm. The design and planning elements like infrastructure, amenities, nearby convenience and availability of transport have become important considerations for a contented life and affordable luxury homes have met the requirement of customers well.

Let’s understand some of the attributes of these houses. These housing projects are generally a part of large housing complexes and economies of scale allows builders to offer houses with modern specifications at a price that is steep. Development teams also spend considerable time in choosing a location for such projects which are in a well connected area but has not seen land prices appreciating absurdly over last few years. Typically such projects will have excellent surroundings and good infrastructure development inside. They have landscaped gardens and other essential amenities like swimming pool and  gym. However, these are not ostentatious and are more functional, catering to higher number of residents, with ease and with lower cost of maintenance. Another hallmark of such projects is the detailed planning and use of latest construction technologies to bring down the time and cost required to build these projects ground up.

Innovation in architectural design, space management, sustainable solutions and much more are now essentials for any new development compared to how it was earlier. Consumers are attracted with the offers of affordable yet modern looking housing options. Newer methods of construction and architectural designs are making maximum possible use of sustainable development, to which a big value is attached by today’s discerning customers. The provision of solar power, rain water harvesting etc. make these projects much sought after. The mid income customer finds this as a great proposition as he can get what he wanted at a price which he can afford.

Good time for NRIs to capitalise Indian RE market

Indian diaspora is one of the largest in the world and has contributed immensely to the Indian economy over the years. People migrate from India for better opportunities in education, employment and business. Indians are the richest group of foreign origin residents in most of the developed world. A well-trained IT manpower and their requirement in these countries have accelerated this process of migration in the past few years. These non-residents have always invested back in their country of origin and several factors have contributed to NRIs investment come strength to strength in the Indian housing market over the years. Till a sometime back, they had small investments in Indian real estate, but now the expatriate community accounts for a big chunk of Indian housing demand. Some analysts expect this investment from NRIs in Indian housing market to grow in 2020-21 by more than 5% to account for more than US$13billion. That is a sizeable amount, which has grown to double already in last 6 years.

Indians abroad have been crucial growth drivers for the Indian real estate consistently. A lot of them were also fooled by some unscrupulous developers and a loss of trust was evident. However, with passing of RERA act and all the states tightening the noose on errant builders and brokers, the confidence seems to be growing back. Traditionally, major sources of NRI investments include the USA, Canada, Middle-east, UK, Singapore, Hongkong etc. Not surprisingly, Middle-east is the biggest source of NRI investments, accounting for more than 40% of the total NRI investment inflow in Indian real estate sector. Probably this also originates from the fact that these countries don’t a give a permanent residence to people of foreign origin and therefore those working there certainly plan for their return to homeland and live here. Another interesting observation on analysing the investment pattern emerges that a good percentage of NRIs are maintain a portfolio of properties and are entering the market primarily for investment purpose.

The interest in Indian housing sector by NRIs is also helped by the emerging importance of India in global attention. Internal stability, infrastructure improvements, improved foreign relations and low inflation rates are also contributing factors to this investment pattern. Traditionally, Indians abroad invested in various financial products like fixed deposits, equity, mutual funds etc., but with declining interest rates and a fluctuating stock market, real estate sector offered an opportunity to multiply their investments much faster. In addition to this, the emotional security and prestige that one derives by owning property in the motherland, is incomparable. Revision in certain legalities and government support for schemes like “housing for all” has further fueled the interest in this sector  and it is on an ascent currently.

The opportunity to invest in the sector is also being supported by a strong dollar. Due to current situation world-wide, the dollar is appreciating, resulting in better value per dollar for NRIs. Also, with the sector in a perilous state in India, developers are sitting with inventories, which they are ready to offer with substantial discounts. Prices in India are not touching the peaks they witnessed a couple of years back. However, after being stable for sometime, the housing prices in new projects in India are finding an upward trajectory. Which means that this window of opportunity is limited and the NRIs who will enter the market now, are expected to reap rich dividends in future.

Good time for NRIs to capitalise Indian RE market

Let us also look at some of the government regulations in the area. It is critical for a non-resident investor to understand and comply to these norms set by government to ensure safety of their investments.

Categories of permitted real estate purchase for NRIs: An NRI/ OCI is allowed to invest in any immovable property in India as per the prevailing laws. This however, does not include the agricultural land, plantation related property or a farmhouse. New housing projects, however, launched by reputed builders are all in the investible category and a number of developers have special support cells for NRIs. It will therefore be important to choose wisely the correct category and take help from an attorney or developer team while completing the deal.

How to invest: Investment in real estate can be made in different ways. One can purchase the real estate in the allowed category directly. It can also be obtained as a gift from a person who is resident of India or a gift from a NRI relative. As per foreign exchange regulation act, a relative is defined as a spouse, brother or sister or any lineage ascendant or descendant of the person receiving the gift.

Real estate may also be received by way of inheritance from a person living in India or from a person living outside India, who would have acquired the said property in accordance with the foreign exchange law in force at the time of acquisition.

Payment for purchase: Investment in real estate has to be be made through regular banking channel transactions. The purchase could also be by way of debit to the Non-resident account held by the NRI purchaser in India. Payments can not be made by using foreign currency and/or traveller’s cheque.

It is important that the person buying the property ensures a personal inspection of the property before buying instead of depending on feedback from others. It is also critical to buy only from one of the reputed developers to ensure complete transparency. It is important to make all the payments through official channels to ensure complete safety of investment. It will be worthwhile to check the past record of the developer and visit some of the completed projects before signing the cheque and closing the deal. While references in India may be a way to get information, verifying each detail yourself or through an attorney avoids troubles in future. There is no doubt that this is the best time to buy property in India for investment purpose by a NRIs, and if done with some caution this could prove to be a big right decision.

What Changes we can see in Property Sales Amidst Coronavirus?

Real estate is a big economic activity in India. In fact, real estate activity is a good measure of economic growth of any geography and therefore India being an economic growth engine, has a fast growing Real Estate sector. There have been a few years when Real Estate contributed to as high as 14-15% of India’s GDP. Though in last few years the industry has faced clear head-winds and is currently contributing only about 6-7% of GDP. Even at this level it is big and has an important place in life of many a people.

The Real Estate Industry has evolved in India over a period of a few years and with regulations like RERA in place, there is a method to how this business can be done. The sales efforts have been more transparent in recent years, which has made the selling more customer friendly. Also, entry of a few corporate and stock exchange listed players in the field has meant that a system driven approach to sales and marketing is being given preference to highly arbitrary practices earlier.  Also, the slowdown over last few years meant that there were fewer new launches and developers started selling products which were constructed and therefore customer could check these before buying. Also, the advent of newer technologies have meant that even when the customer is away from the construction site, he could understand how it would look like.

property in lucknow,property in gomti nagar extension lucknow

These changes had been coming at a slow pace, especially in smaller towns. However, with Covid-19, one could expect this to change very rapidly. On one hand, there will be concerns about repeated visits by a prospective customer to a construction site and hence, customer would like to short-list properties sitting at home. This would force companies to switch to latest available technologies of visualization. While earlier having a few videos of sample flat were considered to be par for course, it will change to developers developing interactive 3D models for buildings and units within this. The scale models, which were a very effective sales tool earlier, may lose the significance as customer is expected to visit a sales office only in the final stage. Also, the ability of a developer to be able to make a customer feel committed to buying, will depend less on sales talk and more on ability to convince him with specific details. This will happen because a customer surfing the internet about various projects will do a more thorough research as he will have the ability to keep flipping till he shortlists certain properties.

In summary, therefore, it is only fair to expect higher level of transparency in the sales calls and property related literature. The company website will be a very important tool to get customers connect and this will hopefully propel marketing teams to spend good time to inspect every single detail that is being put on website. The times of web-calls and effective objection handling on telesales are here as the time for site visits may be limited.

Future of Real Estate Industry in Lucknow

Lucknow has been one of the fastest growing towns in India. The real estate market which has struggled across India has been able to keep the momentum going in this city, especially in certain localities, due to various factors. A positive government, which is great at execution, a city that is known for being peaceful and the presence of excellent infrastructure created by successive governments, make this an ideal place to live and earn a living. There is no doubt that lower GDP growth affected the price appreciation here too. However, if there is one town which will start looking up quickly and it is Lucknow.

The reasons for this optimism are not hard to come by. For migratory laborers, who fled from large industrial towns in west and south during the early days of Covid-19, are closer to Lucknow than any other developed city. Therefore, the supply of labor will not be a constraint here. Similarly, the town also has huge investments coming in from rural areas of Eastern UP. The rural economy is doing well and the recession in the consumption of other items will result in people with a substantial agricultural income to have a higher surplus income. This will find its way into the Lucknow housing market as people will look for towns with good health infrastructure. Lucknow will be the first choice in this entire region for people.

One thing which is important to be kept in mind during this time is that it is foolhardy to assume that all the localities in Lucknow will see good appreciation. There will be areas that will be preferred over others. And the factors which will decide this are simple – Availability of apartments with world-class facilities, safe and well-sanitized areas, and social and medical infrastructure suitable to fight repeated outbreaks of pandemics. If one scans through Lucknow city a few areas stand out in this test. Areas in Gomti Nagar and Gomti Nagar Extension around Shaheed Path and near Airport can be expected to appreciate much faster than other residential areas. These areas are located near some of the best social and medical infrastructure. These localities also boast of some of the best housing developments with excellent amenities and are considered to be the safest and most hygienic parts of the town.

Real estate in lucknow,Real estate developer in lucknow

The growth of the housing market in Lucknow city is getting on track gradually and is certainly waiting for an opportunity to start its march up. It is of course difficult to precisely predict as to who will this start happening but for any keen eye, it is not difficult to find this opportunity. And this opportunity is being looked at by people across the state and nation, which makes the outlook even brighter. The current state government is ranked high on various parameters of governance and industry is showing a higher level of trust in the state than shown ever in the near past. These factors will weigh on what looks a logical flow of money and it is, therefore, easy to conclude that the future of the housing market in Lucknow is one of the brightest spots one can locate right now.

3 BHK v/s 2 BHK Apartment

While buying the first house, a question which one faces all the time is as to whether one should buy a 2 BHK or a 3 BHK apartment. Needless to say that it depends on one’s needs and affordability, but it is not such a simple decision. It is important to understand that the decision being taken now will stick for a long time for one doesn’t change a home easily. The important considerations in this decision are – 1. Current and planned family needs, 2. Available budget and 3. Purpose (self-occupation or investment (renting).

Buying a home is a long term and an emotional decision. Therefore, the decision most of the time can’t be limited by the above 3 considerations very strictly. It is especially true for people buying their first home. There is a certain amount of pride involved in buying a first home on your own – you may have started earning a few years back and now look to invest the surplus money in a way that provides you long term security in the form of a home. First home buying is also an emotional moment in countries like India because of the association of this event with one’s status in society. Therefore, it is important to do consider all the aspects, while buying a home. Let us now look at each of the above-mentioned 3 aspects in detail.

The first thing one needs to do is to understand the family needs currently as well as planned requirements for the future. It is also important from the perspective that the family requirements change at various stages of life and one doesn’t want to keep moving house every time. It is important to consider points like how many kids are there in the household and if the grandparents are going to be staying in the same house. If there is a plan to start a home office for either of the spouses, it is important to put it down as part of the requirement. This needs a detailed thinking process and should not be hurried into.

Another important factor that needs consideration is the budget. One needs to make a personal financial plan to understand the money which can be taken out without affecting other functions of life adversely. Though, housing financing companies offering home loans at attractive rates and terms has helped people stretch beyond their current means. However, it is advisable to take help from a financial planner on this aspect. Housing finance companies also offer help in the form of guiding a prospective home buyer on calculating the loan eligibility and the resulting EMIs.

The purpose for which one is buying a house is also very important. While for self-occupation, it may be advisable to stretch the budget a bit and look for a bigger house, the investments have generally grown faster in the case of smaller units. It is also easy to find a renter or a buyer of a smaller house.

It is, therefore, important to consider all these factors in detail and strike a balance between needs and budget before deciding what size of the home is preferable.

5 Things to do When Planning to Buy a Property

Families grow and so do the requirements. Modern times have also brought in a lot of gadgets into life. It has also widened the range of expectations that each member of the family has. All this results in aspiring for a property different from the one you are living in. One always wishes to live in a place that can help meet all the expected pleasures of life. However, this is not always possible. The only way one can be successful in this endeavor is by planning in advance.We understand that buying a property is once in a lifetime event and hence, listed here are 6 points everyone should remember to help make the right decision:

property gomti nagar extension lucknow
  1. Understand Your Future Requirements – As we discussed earlier, buying a property is generally a once in a lifetime affair. It, therefore, is important to plan the same well in advance. Please sit back with your family and work out a plan of how you see the family growing over next decade. It is also pertinent to know as to what will be the requirements of each member of the family and how will they evolve during this period. This exercise will help you make a list of what is essential in the house that you would buy. Anything more than this is fine but less would trouble you later.

  2. Work out Financial Resources – While the above analysis gives you an understanding of your requirement, the other important variable is the financial resources that you can use to invest while buying the property. It is important to make a future plan of earning basis your employment status. If you are a self employed person, make an intelligent guess as to how your profession will do over the years and therefore what kind of money you will earn year after year for next 10 years. You should also make a list of essential expenditure that you will face over this period of time to ensure you work out the investible surplus.

  3. Check your Credit Rating – In almost all the cases today, one looks to take a housing loan. It helps you to buy a bigger property in gomti nagar extension lucknow than what you can pay for purely from internal accruals. There are also attractive tax breaks and the rate of interest in general is the lowest on a housing loan. Now, it is important to understand that the rate at which you will get a housing loan depends upon your credit rating. So , go ahead, and check this and work to improve it if needed.

  4. Shortlist Localities – It is important to read through the news and make an intelligent guess as to which localities will grow faster in terms of commercial values and neighbourhood facilities. Look at the Master plan of the town created by development authorities for future. Shortlist the localities that you think will grow and provide the kind of lifestyle you are looking for.

  5. Checkout latest Trends – It is important to know what are the latest development happening in building technology worldwide. Move around and see for yourself the latest trends and list down the developers who are using these technologies and integrating the latest amenities in their plans. Remember, something that looks like futuristic today will be a basic requirement in very near future. 

I am sure if you do these 5 things, you can plan your property in lucknow buying well and your experience will be smooth and you will not regret your decision.

Is Gomti Nagar Still the Best Area in Lucknow to Buy a Home?

Lucknow takes the pride of place as the most preferred destination for people to buy a home in Eastern and central Uttar Pradesh. There are multiple reasons for this and it being the most happening and safest place of the region is just one of them. Lucknow has also grown faster than another town and its expansion has been matched by the development of facilities in the town. While Lucknow has grown in all directions, the development has not been equitable, as can be expected basis the modelling one would do basis the development of other large cities in India.

When one looks at the development of Lucknow city over the last 30 years, Gomti Nagar stands out as the best developing residential area. Every time you go to this place, you get surprised by the frantic pace of development here. Although there are other areas like Kanpur road, Sitapur road, Faizabad road, and Raebareilly road, which have also seen rapid progress. But the charm of Gomti Nagar is still as strong as it has been at any time in the last 30 years. There have been claims at times by some real estate developers for other areas to be more futuristic than this area, but none of these claims have proved to be right. In fact, Gomti Nagar extension has continued the same level of development as was associated with Gomti Nagar. The real estate developments here have been good and infrastructure facilities that have sprung up here are better than men what was planned for Gomti nagar.

So whether one talks about Ekana international cricket stadium or Phoenix market place, you see incomparable development of the future. The planning of roads, office spaces, and connectivity to other important parts of town is at a level unrivaled by any other locality in Lucknow. There is no surprise then that all the best international brands are clamoring to set up shop here. We have always seen across the country that the best residential property market growth happens wherever leading commercial projects are launched. Therefore, one should not be surprised by the huge demand for Property in Gomti nagar extension lucknow area.

Another reason which fuels the demand for housing in an area is the lifestyle choices being made available. This could be reflected in the kind of schools and hospitals and sports and leisure facilities. With the best-branded schools and hospitals making this area their home and most of the new sports and leisure projects being announced by government falling in Gomti Nagar extension, for years to come, the area will keep growing. The best real estate developers have also announced their projects in this area with the best of amenities. The building technologies being used here are state of the art and therefore give it an edge. Another strong post is that despite all these advantages the home prices in this area have not seen run-away inflation. Though one can’t say that for the future, with continuously increasing demand and decreasing inventories. No doubt, therefore, that Gomti Nagar remains the best area in Lucknow to buy a home.  For more information please visit:http://paarthinfra.com/

property in gomti nagar extension lucknow, flats in gomti nagar extension lucknow
property in gomti nagar extension lucknow

Why should You Research for Buying your Home During Lockdown?

The world is currently going through a phase inimical to whatever we have seen over the last so many years. Most of it has left us with negative impacts and thoughts. However, one thing which it has contributed positively to almost all of us is the time to reflect back. A time to connect with our current selves and plan for the future. It is needless to say that financial planning is one of the most important aspects one has to look at in these circumstances. Let us understand it more in detail.

Apartments in Lucknow,Flats in Lucknow,Flats for sale in lucknow

One of the most important things to look at in terms of financial planning is the insurance cover for various types. It is important to calculate what is a good level of insurance cover both in terms of life and health cover that is needed for each member of the family. There are various guides available for the same. You can visit the website of any insurance company in India and can arrive at the broad value of cover that you will need. The other important aspect is to understand how will the Covid-19 impacts the economy and thereby the valuation of assets.

Now to do that, one has to use one’s own analysis and it can’t be left to be guided by a single source. How does one decide where to invest. Should it be in gold or share market or bond market or Fixed deposits? Or should one use the available time to stay in the Real Estate Developer in Lucknow and make an investment there? This is actually a good time to spend time planning this. There is time available to research various sources and discuss with family and friend in peace. A good indicator to deciding this will be the understanding of past such events. There have been no such events in the near past which have destabilized the world so much. However, the middle east oil shock of the 70s and the Lehman crisis of 2008 are the best simulations available.

When one looks at what happened during each of these times, there are a few things stand out. In every single case, the reaction of the market was extreme, resulting in value being lost quickly and the regained in double-quick time. The other lesson is the relatively different effects on different products and countries. While in the short term and during the crisis Gold and bonds did better, in the long term it has been the real estate that has been a clear winner. When looked into from the perspective of a developing country like India, this is even starker. This time, it is expected to be even clearer and faster due to a clear indication of industries moving out of China and setting shop in India. The good news is that the CM of UP has been proactively targetting these industries and the response has been good. If that happens real estate will see a huge upside in the coming years. So use this time to look around what is available of value in real estate and invest.

For more information please Visit our website: http://paarthinfra.com/

Why Architectural Design

Home is the place where we spend most of our life, along with our near and dear ones. Our parents and children would need all their requirements to be met in the house you buy. It could only be achieved if a house is designed well. What we keep hearing from our friends, who have bought houses, all the times – no air-circulation, no sunlight, lot of seepage etc. This problem is more acute in an apartment than an independent house. But how does a good house design help this cause. Let’s understand.

We all understand that different parts of the world have different weather conditions. It is also well explained by scientists and engineers by now that at different times of the year, sun rays reach earth at different angles. In fact the movement of sun and where it rises (the direction) also varies through the year. Winter and summer solstices amply provide this understanding. In this situation, it is very important to realize that sun rays have to fall at different parts of an apartment at different times. Good architects use this to design great houses, which are also energy efficient.

Another aspect which affects good home designing is the fact that air movement in different parts of the world is different. It depends on factors like proximity to sea or mountains as well as the location near or away from tropics. The strength of storm-like winds is also a crucial factor to be noted. When the elements of a house or a building are designed basis this, the result will be a house which will have a good ventilation. A good ventilation always ensures a home free of micro-organisms, which is critical for good health. A well-designed home also reduces energy consumption, as it ensures optimal temperature to be maintained at all times. One can argue that with today’s technological development, Air-conditioners and heaters can be used to maintain optimum temperature, however, without proper ventilation, the air inside the house will not be healthy. Also, such devices make air drier, which has negative impact on various body organs.

But how to get a well-designed flats in Lucknow. The only answer to this is that one needs the services of a good architectural team, who understands these aspects and has a portfolio of projects can achieve it scientifically. Especially when one is talking of an apartment building, it becomes extremely important. You can’t have wannabe designers creating a house design which can provide the required amount of sunlight and air circulation. One of the best designed building, I have seen in Lucknow in Gomti Nagar Extension area in Lucknow is Paarth Infrabuild’s Arka. This is designed by Hafeez contractor, arguably the best architectural team in the country. A half-circular shape of the project ensures great air circulation to every single flat. The beauty of it lies in designing each apartment as if these have been designed individually to create perfect homes. The direction for each is managed to ensure optimal sunlight and air – circulation as needed.