The Top Notch Real Estate Companies India

The booming property market of India proves the rapid growth of the real estate companies India. The realty companies of India are involved in varied activities ranging from infrastructure development, residential complex, commercial real estate to retail space development.

The favorable government policies are one of the major reasons behind the growing real estate companies India. The government approves of 100 % FDI encouraging people from all across the globe to invest in India. Let us take a look at few of the major real estate companies.

Major Real Estate Companies India

Ambuja Realty Group The company is a joint venture organization between Ambuja Housing and Urban Infrastructure Company Limited and West Bengal Housing Board. The objective of the company is to develop affordable homes with strong base and close nature.

DLF The developer is considered to the be biggest builders of India. The first project developed by the company was on the very heart of Delhi. It is a trend setter in the industry. Much of the credit for changing Gurgaon urban landscape goes to DLF.

Sun City Projects It is one of the leading companies in India. The company has till date involved into variety of projects ranging from group housing to townships to luxury apartments, shopping malls, complexes for office to amusement parks.

Merlin Group For the past three decades the company is active in the real estate sector. The builder has successfully developed townships, office buildings, shopping malls, clubs and office buildings in many cities like Kolkata, Ahmedabad and many such.

Mittal Builders The company has been into the real estate industry for the past 5 years. Unlike its counterparts, the main agenda of the company is to develop real estates. It has successfully carried out its development activities in cities like Mumbai, Bangalore, Pune, Secunderabad, Nagpur and many others.

K Raheja Constructions The construction company ranks among top 10 realtors of India. It was honored with Best Construction & Real Estate Sector Implementation. Raheja has built many projects in cities like NCR, Mumbai, Pune, Chennai, Bangalore and many such.

There are numerous other real estate companies India that are coming up with innovative commercial and residential projects, changing our very form of living.

Growing Indian Real Estate Market


India’s real estate market is on a high growth curve and is today one
of the fastest growing market in the world. It is categorized into four
sub-categories such as housing, retail, hospitality, and commercial.
While housing projects contributes six-seven percent of India’s gross
domestic product, the remaining three sub-categories are also increasing
at a fast pace. The Indian real estate is an infrastructure services
that is driving the economic growth of the country. The role of
Government of India has been instrumental in the real estate
development. There are many developer and buyer friendly policies which
are introduced by government.


The market of India real estate stood at US $ 56.2 billion in the
survey of 2010-2012 and expected to touch US $ 179.9 billion by 2021.
The market is expected to grow at the compound annual growth rate of 20
percent in the period of 2011-2014. With first series the modern cities
expected to account for about 45 per cent of this growth.

The
top eight metropolitan cities such as Delhi-NCR, Mumbai, Bangalore,
Chennai, Hyderabad, Pune, Kolkata and Ahmadabad have maximum office
space absorption were up to 59 per cent during January-March 2014 as
compared to periods of last year. During the period of January-March
2013 Ahmadabad and Delhi-NCR recorded a threefold increase in net
absorption.

In the first quarter of 2014 number of new
residential projects launches with 56,000 units across eight
metropolitan cities and Bangalore recorded maximum number of units at an
increase of 21 per cent at 17,838 units, followed by Mumbai and
Chennai, according to a report by Cushman & Wakefield.


Indian real estate has large number of investment opportunities, all
corporates look to expand businesses, India is expected to witness major
demand for office space in 2014. Office space absorption across the
country’s seven major cities is likely to increase ten per cent this
year to 30 million square feet, according to global real estate
consultant.


The retail space absorption by the top eight metropolitan cities is
expected to more than double to 12.7 million square feet in 2014 and
this will take up the retail space across India’s modern cities to 88.6
million square feet by the end of the year according to a report by
Jones Lang LaSalle.

Real estate construction development sector,
including township, housing projects, built-up infrastructure and these
projects garnered total foreign direct investment (FDI) worth US$
24,211.54 million in the period April 2001-January 2014. Infrastructure
activities during the period received FDI worth US$ 2,539.58 million
according to the Department of Industrial Policy and Promotion.


Indian real estate has some major investments and developments such as
Somany Ceramics plans to invest Rs 160 crores for capacity expansion and
brand building, Lodha Developers has invested Rs 1,254 crores for
acquired Clariant Chemicals’ 86-acre plot of land in Thane, Mumbai,
Xander Group has invested Rs 360 crores in Kapstone Constructions,
Ambience Group plans to invest about Rs 1,80 crores over the next four
years to develop two housing projects in Noida and Gurgaon, comprising
1,100 housing units and Vardhman Group invest $70 in Vardhman Camellias.

The market of real estate is expected to result in high
transaction activity, eminently in income yielding commercial office
equity during 2014.The country still needs to add number hospital and
educational institutes to meet the global average.

Who Invented Super Built Up

All over India, super built-up concept has taken its place in real estate transactions. It is applicable to residential units, commercial premises and now to the open vacant land.

Although, there is no place of such concept in any law for the time being inforce, the transactions cannot take place without it.

Question is, who invented and why ? When builders started selling concepts instead of flats in early 80s, they were asked to sell it on carpet and no due charges were given for the extra amenities they had provided.

The balcony was charged extra premium by the BMC and builder mounted balcony area on carpet area of the flat. And slowly he started adding areas of passage, common staircase, lift wells, compounds, terrace, gardens etc on the carpet area to maximise his profits.

The permissible built up ratio was 18% that time and is still applicable. But the trend changed over the years. Builders started mounting 23% in early 90s then 30% in late 90s and nowadays majority of the builder sells nothing less then 33% to 45% on residential units, 50% to 200% on commercial premises. Government agencies like MHADA, SPPL, DDA and CIDCO are also following the trend.

Landlords are also now very well informed on such practice and hence sell the open land to developers by adding 33% of saleable area.

This is not the practice in Mumbai alone. Ahmedabad, Delhi, Rajkot, Bangalore, Pune, Nashik, Kolkatta, Chennai and elsewhere in India are following the trend.

When Mr. Deepak Parikh, chairman, HDFC, boldly said in CREDAI meeting at Bangalore that the sale must be on carpet area, no developer came forward to announce his intention to sell at carpet area except Mantri Group. CREDAI has itself imposed code of conduct which clearly says that the carpet area must be mentioned in sale agreement. The Confederation of Real Estate Developers Association of India failed to impose such code.

In Model Agreement under Maharashtra Apartment Ownership Act, it is mandatory to mention carpet area in sq.mtrs. And the model agreement is mandatory to be followed for entering into an agreement. But sellers never follows the model Agreement, instead drafts one sided agreement to protect them and attack the purchaser without any fault.

A thought was coined by MCHI office bearer, in a talk show on some channel recently, that we give extra amenities, extra open space, extra lifts and other amenities, we are charging for that. And super built-up area is just a method for calculating the rates. Either you pay Rs. 2600/- as super built up or Rs. 3800/- on carpet, my flat will cost Rs. 18,00,000/- for 2 BHK.

Open spaces are mandatory to be left alone in the Development Rules of BMC. The builder has to keep such open space. By just decorating and using it as USP for the project, it doesn’t give him any reason to mount on the carpet.

It is already written in DC Rules and proven that lift wells and staircase do not count in the total constructed FSI, hence charging such area on carpet is not justified.

Compounds also cannot be charged on carpet, because anything open to sky is not saleable. Non saleable areas cannot be sold by proxy. It cannot be counted in area of occupation. Also, open car parkings are been sold, hence builder should not charge the open compounds twice, once sold as car parking and secondly mounting such areas on carpet. Even open car parking cannot be sold.

Lastly, the customer who register their documents on super built-up area pays higher property tax, society charges for life time. He pays the taxes for lifetime on the area which he is not occupying and only mentioned on paper. Higher stamp duty and Registration charges on super built-up area is also not justified.

It was indeed a great concept two decades ago, but now when transparencies are discussed, the seller must be Caveat Emptor. Let the buyer be beware of everything which he is paying for. Founder Convenor Mr. K.V. Satyamurthy, FAAI rightly raised the voice as “Maap Mein Paap Nahin”. An upcoming rating agency sent a SMS to this author, said “Earth will swell 45%, if developed by a Mumbai developer”

[Counter arguments are invited. Just mail on ]

Divergent Housing Price Trends In Mumbai And National Capital Region Crisi Research

CRISIL Research expects divergent price trends during the year in Mumbai and NCR (National Capital Region), the two largest residential real estate markets in India. In 2011, prices of houses are likely to decline in Mumbai, whereas prices will rise marginally in NCR. Further, the extent of price decline will vary widely across areas in Mumbai, whereas prices will inch up uniformly across areas in NCR.
CRISIL Research studied the price trend in three major supply pockets in Mumbai and NCR western suburbs (Goregaon, Malad, Kandivali and Borivali), Thane (Ghodbunder Road), and central suburbs (Dombivli and Kalyan) in Mumbai; and Noida and the outskirts of Ghaziabad and Faridabad in NCR.

City Reality reports offer an in-depth, area-wise analysis of residential, commercial and retail segments covering 400+ areas across 88 micro markets in 10 Indian cities. Read the real estate developer ratings at CRISIL that has developed two specialized products with their real estate research that help housing customers and financial institutions understand the intricacies.

Accounting for more than 50 per cent of total planned supply in each city, these major supply pockets would represent the trend in housing prices in the whole city. Mumbai and NCR would together account for more than half the 1.5 billion sq ft housing supply planned in India’s 10 leading cities up to 2013.

In Mumbai, falling demand, owing to diminished affordability, and rising interest rates will trigger a decline in prices in 2011. Prices of houses soared by 43 per cent in 2010, in the city’s three major supply pockets. Prices thus surpassed their peak values, attained in the first half of 2008, by 26 per cent, adversely affecting housing affordability. CRISIL Research therefore expects prices in Mumbai to decline by 8-10 per cent in 2011.
In NCR, prices will move up marginally because of relatively better affordability. Prices went up only by 6 per cent in 2010 in the capital region’s three major supply pockets. Prices in these areas currently are 15-20 per cent less than their peak values in the second half of 2007, making affordability relatively better in NCR than in Mumbai. CRISIL Research therefore expects average prices in the region to move up marginally by 3-4 per cent in 2011.

“Reduced affordability and a likely increase in interest rates by the Reserve Bank of India will subdue demand and depress housing prices in Mumbai in 2011. In NCR, relatively better affordability will prop prices despite any increase in interest rates,” explains Nagarajan Narasimhan, Director – CRISIL Research.

In Mumbai, the extent of the price decline would vary widely by area. Prices in premium locations like South Mumbai and Central Mumbai, which have an excess supply of houses priced at more than Rs 50 million, would decline sharply by 15-20 per cent over the next 12 months. Prices will decline more moderately, by about 6 per cent, in areas like Vasai and Virar, where affordability would be relatively better. In NCR, with prices increasing marginally across all areas, the trend, again, will be divergent.

Why You Need To Start Investing In Commercial Property

To most of us, investing in a Residential Property seems to be a more lucrative option as compared to investing in Commercial property for sale or commercial property on lease. However, in reality the scenario is totally different. To know more, let us go through some of the pros and cons of investing in residential property.

Residential Property Investment: Pros It is tax deductible: Most expenses related to Residential property are tax deductible. For instance, the depreciation on the property, property loan are all deductible when you pay your annual tax. This is one of the main reasons why investors often make a beeline for investing in Residential properties instead of commercial property. Money minters: Another advantage of investing in residential property is that you get to make a huge amount of money as and when the value of the property increases. This is particularly true in the case when you invest in a property that is situated in a prime location in various cities. Earn from rentals: An investment made in residential property is an investment for a lifetime. This is because after buying a residential property, you can put it for rent or lease it to a company and earn extra income from the rentals. The cons of investing in Residential property : Why invest in commercial property in Mumbai (and elsewhere ) Rise in interest rates: Many a times, the interest rates of residential property may rise overnight, leaving investors in a lurch. This is not the case with commercial properties and hence, it is a safer bet particularly if you are taking a loan for investment. Bad tenants: Okay, so you give your property for rent and earn extra income. But what if you get really bad tenants/occupants? They may not pay the rent on time, cause damage to your property or even carry out activities that might not go down too well with those living as their neighbors and for that matter you. Commercial property on lease by various companies, won’t encounter such problems. Developing it can take up your time: Many a times, investing in residential property can take up much of your personal time since sooner or later, you might end up using it. This is the reason, you’d want everything to be perfect. Commercial property on the other hand, needs less attention from you as an individual and hence it is a safe bet.

So, these are some of the pros and cons of investing in a residential property. I am sure that after going through them, you might want to reconsider and invest in commercial property in Mumbai. You can either go for commercial property on lease or commercial property for sale – whichever falls within your budget constraints.