Chennai is currently witnessing a stunning growth in the Real Estate Market. Chennai has a diversified economic base. The main industries are software services,hardware manufacturing, automobile and financial services. Chennai has emerged as the top candidate for 'Location Ranking Survey' among the other three Indian metros- Delhi, Mumbai and Kolkata. Software services and Business Process Outsourcing (BPO) has emerged as major contributors to Chennai's economy. Chennai is experiencing a major real estate boom. The primary cause of this is the rapid development of the Information Technology in the city.
This has attracted young professionals with considerable disposable income and a consequent consumerist mindset. The consumerist culture has also encouraged the growth of organized retailing. International automobile manufacturers like Ford and Hyundai has also set base in the city. In order to attract the business traveler several up-market hotels have been established at Chennai in the last decade. International hotel chains like JW Marriott, Radisson has constructed hotels in Chennai. The prospective property buyer in Chennai is highly fragmented; the majority work in the I.T sector followed by Financial Services.
There is also another segment- the NRI's or the Non Resident Indians who usually buys high value 'cream' properties in Chennai. Land prices in Chennai has showed an upward trend in the last few years; this has led to an active demand for flats or apartments. For the well heeled there is the choice of purchasing independent houses like villas and semi detached cottages. These high value properties usually come with other 'frills' like swimming pools, gymnasium and exclusive club memberships.
The unique feature of such properties is that they are usually located on the I.T corridor (old Mahabalipuram Road)- making the daily commuting of residents easier to the office. The promotion of Chennai as an investment destination has resulted in developers promoting I.T Parks. Commercial and Industrial land is getting costlier every passing day. The old industrial heartland of Chennai situated in the western part of the city has attracted commercial developers.
The increase in property prices has also been a boon to the government authorities; higher property prices mean higher revenue collections! There has been a 40% increase in revenue collection compared to the previous years.
Wednesday, March 11, 2009
real estate scenario in kolkata
Real Estate in Kolkata is in a high growth phase, especially in office, hospitality, retail and residential sectors.
Real Estate in Kolkata have appreciated in monetary value in the last few years. A rapid industrialization and creation of a better infrastructure has contributed to development of Real
Estate in Kolkata. Real Estate in Kolkata is defined as the land in the Kolkata metropolitan region along with anything attached to the land like buildings and its fittings. The demand of real estate in Kolkata is fueled by the development of the Information Technology(I.T) and Information Technology enabled Services (ITeS) sectors. The real estate in Kolkata is also driven by the following factors:
Real Estate in Kolkata have appreciated in monetary value in the last few years. A rapid industrialization and creation of a better infrastructure has contributed to development of Real
Estate in Kolkata. Real Estate in Kolkata is defined as the land in the Kolkata metropolitan region along with anything attached to the land like buildings and its fittings. The demand of real estate in Kolkata is fueled by the development of the Information Technology(I.T) and Information Technology enabled Services (ITeS) sectors. The real estate in Kolkata is also driven by the following factors:
- Lower land acquisition cost
- Attractive government initiatives
- Lower asset prices
Availability of scalable infrastructure All these factors make Kolkata Real Estate a magnet of premium developers from all over India and abroad. Foreign real estate investors makes Kolkata Real Estate as their first port of call. Prices of Kolkata real estate have shown a steep upward graph- especially in South and South central Kolkata where the price per square feet has risen a mind blowing Rs 800 in just six months!
For example real estate prices in Bhawanipore has risen to Rs.3000 from Rs.2,200 in only six months! The other boom areas are the Eastern Metropolitan Bypass area and the new Rajarhat township. The unprecedented price rise in Kolkata Real Estate is seen in south Kolkata localities like Ballygunge, Prince Anwar Shah Road and Elgin road.
The factors behind such a steep rise in select localities are the limited availability of real estate options, successful retail and commercial projects and improved connectivity with improved urban road build quality. There is also an abstract reason- aspirational quotient of the consumer. The inflow of Foreign Direct Investment (FDI) has also led to an appreciation of the overall quality of real estate projects. Movement in real estate market has given push to Kolkata Hotels too.
Sunday, January 4, 2009
IBA Reduce Intrest Rate on Housing loan
New Delhi: Working in tandem with the government to resurrect the economy and boost growth, the Indian Banking Association on Monday decided to reduce the interest rates on home loans. Now, interest rate for home loans upto five lakhs and for a maximum period of 20 years will be 8.25 percent while the loan of Rs 5-20 lakhs will attract an interest rate of 9.25 percent.
In a move which would come as a relief to borrowers, the IBA has decided to freeze the interest rate for the first five years, meaning that his EMIs won’t fluctuate. After the freeze period, the borrowers will have the option of choosing between floating or fixed rate of interest.
The new package has also done away with the processing fee and pre payment charge on loans upto Rs five lakhs. A free insurance will also be provided to the borrowers, the premium of which will be borne by the bank.
The IBA has also announced a margin of 10 percent for loans upto Rs five lakh and 15 percent for loans between Rs 5-20 lakh. It means that a borrower will have to pay 10 or 15 percent of the purchase value upfront, as per the loan amount.
The new home loan rates will be valid till June 30, 2009.
The new package also assures the borrowers in case the lender bank comes up with a home loan product of lesser value. In such a scenario, the bank will match the older package with the lower one.
The package is aimed at boosting growth, and will be available only for new home purchases and not for refinancing existing borrowers.
The special package will only be offered by state-run banks.
Leading private lenders, including ICICI Bank and HDFC, appeared favourably inclined to cut their rates, with sources saying that the two lenders would study the PSU banks’ package before taking a call. The sources said any decision would be taken after ascertaining whether PSU banks are getting any government subsidy for implementing the package.
The banks have also decided to cut the lending rates for the micro and medium enterprises by 100 basis points.
In a move which would come as a relief to borrowers, the IBA has decided to freeze the interest rate for the first five years, meaning that his EMIs won’t fluctuate. After the freeze period, the borrowers will have the option of choosing between floating or fixed rate of interest.
The new package has also done away with the processing fee and pre payment charge on loans upto Rs five lakhs. A free insurance will also be provided to the borrowers, the premium of which will be borne by the bank.
The IBA has also announced a margin of 10 percent for loans upto Rs five lakh and 15 percent for loans between Rs 5-20 lakh. It means that a borrower will have to pay 10 or 15 percent of the purchase value upfront, as per the loan amount.
The new home loan rates will be valid till June 30, 2009.
The new package also assures the borrowers in case the lender bank comes up with a home loan product of lesser value. In such a scenario, the bank will match the older package with the lower one.
The package is aimed at boosting growth, and will be available only for new home purchases and not for refinancing existing borrowers.
The special package will only be offered by state-run banks.
Leading private lenders, including ICICI Bank and HDFC, appeared favourably inclined to cut their rates, with sources saying that the two lenders would study the PSU banks’ package before taking a call. The sources said any decision would be taken after ascertaining whether PSU banks are getting any government subsidy for implementing the package.
The banks have also decided to cut the lending rates for the micro and medium enterprises by 100 basis points.
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