Re/max India Real Estate Concepts

02/05/2016

10 reasons why Real Estate prices must be brought down
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Raghuram Rajan read out the riot act to the real estate lobby. He wanted them to do their bit, in reducing the cost of real estate, before the banks reduce interest rates. Here are MY 10 reasons why a fall in real estate pricing is most important to India.

1. The enormous unsold inventory has to be brought down. It starts with the cost of homes and not interest rates on home loans.
2. Much of the parallel economy (read Black money) starts and ends with real estate. Bring down the cost, and the black money evaporates. Real estate is bigger than those we are searching in Swiss banks.
3. It is only in India that the rental yield on real estate is 2% and interest cost is 12%. Only fools still borrow to invest in real estate. Especially, when there is zero capital appreciation. This gap is because of black money. They have to converge, and it starts with the cost.
4. The rental cost of real estate for business is as high as 10%. Businesses cannot survive with such high cost. Many businesses will become viable if real estate costs come down.
5. The surest way of hitting at politicians and Mafia is by reducing cost of real estate. It breaks their spine and hits them where it hurts the most.
6. Real estate is now a bubble. It has to be burst before many ordinary people get sucked into it. We have to save their hard earned money from being evaporated.
8. Real estate in India costs as much as in US or any other developed country. However, Cost of living is not even 1/3. The difference has to be bridged.
9. Housing is a need, not a luxury. And land is a national asset, not to be hoarded or profiteered. State intervention through market forces and fiscal interventions must be ex existed to make home buying affordable.
10. Reducing real estate costs reduces inflation and allows RBI to work on reducing interest rates. The cycle kicks off with real estate lobby than with RBI.

http://economictimes.indiatimes.com/wealth/real-estate/reduce-prices-to-attract-more-buyers-raghuram-rajan-tells-realtors/articleshow/51984191.cms

19/10/2015

Can the RBI rate cut of 50 bps revive sentiment in the housing sector and bring back buyers as EMIs (equated monthly instalments) would now be lower?

I don’t think so.

http://qz.com/524780/why-renting-a-house-in-india-is-a-better-idea-than-buying-one/

Real estate sector is staring at a collapse.

13/10/2015

https://www.linkedin.com/pulse/why-indias-home-prices-crash-ritesh-kumar-singh?redirectFromSplash=true

In a recent media interaction, Finance Minister Arun Jaitley urged RBI to reduce interest rate, as lower interest rate will fuel growth in India's re

10/08/2015

Circle rate is the minimum value at which the sale or transfer of a plot, built-up house, apartment or a commercial property can take place.

Market price is the value of such an asset for a transaction between a seller and buyer which is done at an arm’s length principle — with the price determined by the market forces of supply and demand.

Across all property markets in India, the circle rates are invariably much lower than the actual market rates.

This is because:
a) Circle rates are not reviewed regularly to bring them in line with the market prices and
b) They do not represent the actual barometer of ground realities.


http://indianexpress.com/article/business/business-others/circle-rate-and-market-rate-what-you-need-to-know/

In terms of impact, there is an additional burden on property buyers in terms of higher stamp duties, resulting in marginally higher transaction costs and overall cost of ownership.

02/08/2015

http://timesofindia.indiatimes.com/city/delhi/Delhi-wants-CM-to-head-DDA-with-LG/articleshow/48313572.cms

Signalling another Centre-state turf war, the Aam Aadmi Party government has made a pitch for making the Delhi chief minister co-chairman of Delhi Development Authority.

02/08/2015

https://teekhapan.wordpress.com/2015/07/30/buyers-cant-be-fooled-all-the-time-lessons-from-a-50-fall-in-home-sales-in-delhi/

Vivek Kaul If you are still in denial that all is well with the real estate sector, this should wake you up. The real estate consultant Knight Frank has released a research report in which it point...

30/07/2015

https://sachmittal.wordpress.com/2015/07/29/land-pooling-the-hope-of-new-urban-development/

Ever since the land acquisition drive took place in the vicinity of Noida Extension, the area has been witnessing a furore and protest from the farmers. A large number of angry farmers came out to...

30/07/2015

“The plan is to carry out various mohalla sabhas and find out if the residents of these areas want the policy. Once that happens, a final decision will be taken,” said an official.

“Since the land pooling policy has been notified, land acquisition cannot happen, unless it is compulsory (for public infrastructure projects). So any residential or commercial development in the area will be completely stalled till a decision is taken,” the DDA official added.

http://www.hindustantimes.com/newdelhi/land-pooling-policy-stuck-because-of-confusion-over-classification/article1-1374473.aspx

While the Delhi Development Authority notified the Land Pooling Policy a month ago after years of waiting, the project cannot proceed further unless Delhi government classifies the identified agricultural lands as ‘urbanisable’.

30/07/2015

The top 10 implementation challenges for smart cities in India

http://india.smartcitiescouncil.com/article/top-10-implementation-challenges-smart-cities-india-0

Having recognised that cities are the engines of growth and are drawing a million people every minute from rural areas, the Government has introduced the ‘Smart City Challenge’, handing over the onus of planned urbanisation to the states. In the approach to the Smart Cities Mission, the objective is…

30/07/2015

http://www.businessinsider.in/Way-to-Smart-Gurgaon/articleshow/48236126.cms

A luxurious city with crystalline structures, sumptuous apartments, ritzy malls and shopping arcades—that's what comes to mind when we think of Gurgaon. But

29/07/2015

The Delhi budget increased circle rates of agricultural land between Rs 1 crore and Rs 3.5 crore. The current rate for regular agricultural land is Rs 53 lakh per acre.

What should be its impact on Delhi end user, who is looking for a flat under DDA land pooling policy?

http://timesofindia.indiatimes.com/city/delhi/New-circle-rates-still-on-paper/articleshow/48258934.cms

17/06/2015