Investment

Should you invest in commercial or residential properties?

Should you invest in commercial or residential properties?

May 22, 2019 in Investment News

NEW DELHI: Should you invest in commercial or residential properties? Both commercial and residential properties have their pros and cons. Commercial properties are a little higher in cost as compared to residential properties but they yield higher rental returns. On the other hand, residential properties are bought primarily for end-use as well as long-term investment. So, should one buy a residential property or a commercial one?
“Commercial real estate has been gradually growing in terms of demand with supply just about keeping up; so price points have steadily moved upwards. Presently, growth in capital and rental values of commercial real estate is on a growth curve. Residential real estate has remained largely stagnant since the past few years – caused by the impact of regulatory changes,” says Niranjan Hiranandani, national president, NAREDCO.
Returns on Investment (ROI)
Residential properties are mostly bought for self-use. However, one can also generate income from residential property by leasing it out. Price appreciation of residential properties over a period of time is another factor that attracts investors.
Properties which can create steady income are typically office spaces, warehouses, retail, industrial and institutional real estate. Regular rent is a key factor that makes investors buy commercial property and price appreciation also remains high.
“Commercial properties are good investment opportunities to earn regular income as they offer high rental rates compared to residential properties. While residential properties, during an economic downturn, are much better than commercial properties, said Ravindra Pai, managing director, Century Real Estate.
However, rental income and price appreciation depends on many factors such as current market trends, location, social and physical infrastructure. These are deciding factors for both commercial and residential property to appreciate.
“The residential market has now begun to pick up, although it will take some time for price appreciation to happen. Whereas in commercial real estate, Grade A office properties have been yielding higher returns. The estimated overall return in residential properties is around 3-4% per year and for commercial properties it is 8-10%,” adds Pai.
Arrival of REITS
India witnessed the launch of its first Real Estate Investment Trust (REIT) by Blackstone and Embassy Group in March 2019. The success of this event led to fresh investment avenue for the country’s commercial real estate sector. It also gave retail investors an opportunity to invest in commercial properties.
JLL research indicates that 294 million sq ft (REITable asset from stock as on 2018 and includes Embassy Office Parks REIT) of office space stock would be eligible for REITs. This would translate to a potential investment of $35billion. This is certainly a big opportunity for Indian investors.
Growth of commercial real estate
Office properties in the right location and project attract quality corporate tenants and can, therefore, yield good rental returns over prolonged periods.
“The average rental yield of a commercial property falls in the range of 6%-10%, whereas the rental yield of a residential property is low in the range of 1.5% – 3.5%. Simultaneously, capital appreciation can also be more than satisfactory for the right office assets,” explains Anuj Puri, chairman, ANAROCK Property Consultants.
Due diligence
While investment is an opportunity it has its own set of risk involved. Hence, one needs to take a calculated step and perform due diligence before investing. You need to check the builder’s track record, location, past price trends, connectivity, job opportunities etc before investing in a commercial or residential property. Also, one needs to ensure that a property is RERA registered in case of an under-construction project.
Key markets
Some of the key markets for investing in both commercial and residential markets are Bengaluru, National Capital Region (NCR) and Mumbai Metropolitan Region (MMR). Growing job opportunities and multi-national companies taking up big land parcels in Indian cities are propelling growth of the commercial sector, not just in metros but tier 1, 2 and 3 cities. Residential market is also witnessing demand from buyers where connectivity is good and job hubs are located nearby.
“Traditionally, top metros including Delhi, Mumbai and Bengaluru, have been the favorite destinations for investors, a trend which has been apparent in the past decade. Metro cities, along with neighbouring areas have collectively ended up getting three-fourths of real estate investments over the past few years,” adds Hiranandani.
Investors must compare their options and price trends before investing either in commercial or residential property. A due diligence is a must with regard to price, location and property prospects before buying.

Sources: realty.economictimes.indiatimes.com

Brigade plans to invest Rs 4,000 crore for commercial realty

Brigade plans to invest Rs 4,000 crore for commercial realty

April 10, 2019 in Investment News

Bengaluru headquartered real estate firm, Brigade Enterprises, plans to invest Rs 4000 crore to develop commercial properties in South India by 2020. The firm is also looking to divest stake in the hospitality business.

Brigade Enterprises has chalked out plans to launch another 8.2 million sq. ft of office and retail space in cities such as Bengaluru and Chennai over the next three years. It already has a partnership with Singapore-based private equity firm, GIC Singapore.

“We have an indicative investment platform of Rs1500 crore but as and when there are opportunities that can go up too. We are targeting rental income of Rs 900 crore over the next four years from Rs 250 crore now,” said Atul Goyal, CFO, Brigade Group.

The platform has concluded land deals, two in Bengaluru and one Chennai. Together, both parties invested Rs 1000 crore in buying land parcel across the Southern cities. “With GIC, we are building 5.5 mn sq ft currently that is expected to be concluded by 2020,” he said.
GIC has stuck at least a dozen real estate transactions since 2007 and has been very aggressive in acquiring assets across residential, commercial and retail segments in the country. The sovereign wealth fund had invested $1.4 billion for 33% in DLF Ltd’s rental arm, creating one of the biggest commercial platforms in India’s real estate market. It also has exposure to Godrej Properties.

Additionally, Brigade Enterprises has also moved all its hotel assets into a separate unit to raise funds to fuel future strategy. It plans to increase the number of hotel rooms to 2,000 by 2022 from 1200 now. “We are looking to divest equity minimum of 25 per cent equity in the hotel business depending on investor appetite,” said Goyal.

The company currently has 18 mn sq ft in residential development and plans to launch an additional 9 million sq ft by next financial year. The company sold residential units aggregating to 0.78 million sq. ft. with a total value of Rs 446 crores sold in Q3 FY19 with average price realisation of Rs. 5,741 per sq. ft.
The net debt of the company as on 31st December 2018 stood at Rs 2833 crore.

Sources: realty.economictimes.indiatimes.com  

Withdraw OCS Or CCS Given To Incomplete Projects

Withdraw OCS Or CCS Given To Incomplete Projects

January 15, 2019 in Gurgaon Investment, Investment News, Real Estate News

As part of a landmark judgment, the Haryana Real Estate Regulatory Authority – Gurugram bench has asked the Town and Country Planning Department (DTCP), Haryana, to withdraw the Completion Certificate (CC), or Occupation Certificate (OC), issued to projects that are yet to complete the development.

The authority has also asked DTCP to initiate an inquiry as to how such certificates have been procured fraudulently.

The development is expected to have ramifications across other states and regions too as several developers had rushed to secure these completion and occupation certificates ahead of the commencement of RERA in a bid to escape its jurisdiction.

It has observed many such cases where part CC, or OC, has already been issued even though the development work is not yet complete, which should be the criteria for granting these approvals.

“A fraud has been committed to secure these OCs and CCs even though the projects are yet to be completed. We have issued show-cause notices to such builders and are reaching out to vigilance for an enquiry into the matter,” KK Khandelwal, chairman, Haryana Real Estate Regulatory Authority, told ET.

The regulator has also asked DTCP to take disciplinary action against officers whose connivance builders have secured such clearances.

The authority has provided a month’s time to promoters of such projects to apply for registration, failing which penal proceedings will be initiated against them.

According to experts, the authority has taken cognizance of the trouble faced by homebuyers of such incomplete projects and builders procuring OC/CC even without completing the projects.

“This order would have wider implications benefitting homebuyers, especially since many states have diluted their real estate rules that favour builders. Such developers will be forced to comply with the registration requirement or face penalty up to 10% of the project cost as provided under the RERA,” said Abhay Upadhyay, president of pan-India homebuyers’ body Forum for People’s Collective Efforts (FPCE).

According to RERA, the development scope of the project includes external work such as roads, landscaping, water supply, sewerage and drainage, electricity supply transformer, sub-station, solid-waste management and any other work as may be provided in local laws.

Internal development work means roads, footpaths, water supply, parks, tree planting, street lighting, provision for community buildings, water conservation, energy management, fire protection and safety requirements, social infrastructure such as educational, health and other public amenities as per sanctioned plans.

Upadhyay reckons that in many cases homebuyers face problems because they are being forced to take possession without the promised infrastructure in place. The CC, or OC, can only be granted after the completion of such development work as observed by the authority.

The authority has also ruled that mere applying for Completion Certificate, or Occupation Certificate, will not exempt any real estate project from falling under the ambit of the Real Estate (Regulation & Development) Act, 2016 (RERA).

It has made it clear that the OC, or CC, granted prior to the commencement of the act will be the only condition to get an exemption from RERA registration of the project.

“…mere filing of the application cannot be treated as completion of the project/occupation of the project,” the order said.

However, it has further stated that homebuyers of these exempted projects can still approach the authority for any structural defect in the project within five years of filing the complaint. The authority has also ruled that all real estate projects will be covered for land title defect liability.

Sources: realty.economictimes.indiatimes.com

OYO appoints Rohit Kapoor as head of its New Real Estate Business

OYO appoints Rohit Kapoor as head of its New Real Estate Business

December 29, 2018 in Investment News, Real Estate News

Hospitality chain OYO Hotels & Homes has named former Max Healthcare senior executive Rohit Kapoor as the head of its new real estate business, the Gurgaon-headquartered company announced on Tuesday.

The appointment, effective December 6, will see Kapoor spearhead new real estate business opportunities for the company, which will include exploring new domains and categories, and other strategic initiatives, according to an official statement.
“While we continue to grow our hospitality business, new real estate initiatives such as this will play a key role in driving the next wave of growth at OYO,” Ritesh Agarwal, OYO Group Chief Executive, stated in the company-issued release.

Kapoor, who will report to Agarwal, will be responsible for growing OYO’s business in India as well as across international markets, through strategic partnerships and investment opportunities, the statement added.
“From one property in Gurgaon, to now over 12,000 franchised and leased assets in over seven countries and 500-plus cities, from budget hotels to its more recent foray into resorts business, and most recently its bold entry into the housing business, makes one thing really clear, this place is the perfect combination of ambition and ability,” Kapoor said.

Prior to joining OYO, Kapoor was the executive director and a member of the board at Max Healthcare, a joint venture between Max India and Life Healthcare, South Africa.

“With Rohit taking on this mantle, we are confident that he will be able to help OYO Hotels & Homes set new benchmarks in the accommodations business and evaluate new opportunities in the real estate industry,” Agarwal said.
According to the press statement, prior to his stint at Max Healthcare, Kapoor, an Indian School of Business alum, spent close to a decade with McKinsey & Company as a consultant.

SoftBank-backed OYO has emerged as one of the largest hospitality chains in the country but has announced its entry into a number of new categories, apart from the budget hotel segment. Last month, it launched OYO Living, the long-stay managed home rentals space.

Kapoor’s appointment follows the company’s announcement earlier this month, naming former IndiGo President Aditya Ghosh as its chief executive for India and South Asia.
Additionally, the company, which now counts China as a home market, alongside India, has brought on board several well-known executives from leading consumer internet ventures, to lead its operations in the world’s second-largest economy.

Last week, ET was the first to report that OYO had hired Wilson Li as its chief financial officer for its operations in the country. Prior to joining OYO, Li used to be the finance and operations head at a listed car rental major Car Inc.

Separately, it has also brought on board Google and Uber executive Jia Zou as its technology head and Tony Liang, formerly with Wanda, SF Express and Dianping, as its chief human resources officer.

In an interview with ET, Agarwal had said that OYO, which was valued at $5.5 billion post its last ending round, currently manages 1,80,000 rooms across 4,000 leased and franchised properties in China. The six-year-old company manages 1,49,000 rooms in India and South Asia.

Sources: ealty.economictimes.indiatimes.com

Office leasing dips 46% q-o-q in NCR in Q3 2018: Report

Office leasing dips 46% q-o-q in NCR in Q3 2018: Report

November 24, 2018 in Investment News, Real Estate News

The National Capital Region (NCR) witnessed an overall leasing of 1.72 million sq ft, a decline of 46% quarter-on-quarter, according to a recent report by Colliers International.

The gross absorption was recorded at 7.65 million sq ft in the first nine months of 2018, the company said in a media release.

“Despite a quarterly decline in leasing across NCR, the year-to-date numbers indicate notable growth of 31% at 7.6 million sq ft. The last quarter will gain momentum with the year expected to close at 9.7 million sq ft against 7.9 million sq ft in 2017, said Sanjay Chatrath, executive director (NCR), Colliers International India.

The office market in Delhi recorded gross absorption of 0.14 million sq ft in Q3 2018, representing a quarterly contraction of 6.7%. Over the last three quarters, the continued decline in demand can be attributed to a lack of Grade A space in major micro markets such as the CBD and Aerocity.

In Gurugram, due to slower decision making on the part of occupiers, gross absorption declined 60% quarter-on-quarter and 50% year-on-year. With most occupiers expanding operations in Gurugram, it noted leasing activity of 0.80 million sq ft in the said quarter.

Noida recorded gross absorption of 0.78 million sq ft in Q3 2018. “Compared to the same period last year, leasing has increased by 30% as the average deal size expanded three times to 70,874 sq ft, the report said.

“The engineering and manufacturing sector was the leading occupier in Noida with 38.5% of gross absorption followed by technology occupiers on 32.1%, and the banking, financial services and insurance sector (BFSI) on 23.5%,” said Chatrath.

Sources: realty.economictimes.indiatimes.com

Which is a Better Investment: Real Estate Or Stocks?

Which is a Better Investment: Real Estate Or Stocks?

November 21, 2018 in Defination, Investment

There’s always a long-standing debate among investors on whether property makes a better investment proposition to shares. There’s no denying that the stock market historically outperforms other types of investments. And if you have to choose between investing in real estate and stocks, it might seem like a no-brainer.

Some people think the stock market is the better alternative because the real estate market is unstable at its best. There’s no guarantee that property values will appreciate from year to year and when home price gains slow or decline, investors take a serious hit. The stock market isn’t much better, it’s known for its volatility and there are unpredictable ups and downs.

Without a doubt, stock market investing offers an unparalleled ease. You can invest in stocks with as less as Rs 500. It can be done in the comfort of your home. The case with real estate is different. You have to go and survey the property, inquire about the locality and go through a lengthy process, including government regulations, to invest in it.

Each investment options provide a range of benefits. Real estate and equities, both are a great source of investment and help build wealth in the long term. Success in investing in these assets depends on the knowledge of the asset, inclination and attitude of individual investors and understanding the key drivers of the prices of these assets. Regardless of your asset class, returns are determined by different factors that generate different benefits. It’s important that you investigate and consider investing in both real estate and the stock market for different reasons.

Let’s look at these benefits in more detail and what to consider before you invest:

REAL ESTATE

  • A real estate is a tangible asset. It can be a land or a property that you can see, feel and utilize. It can provide a better quality of life. Moreover, before your purchase, you can inspect the property if it is in good condition to make sure that what you are getting is worth your hard-earned money.
  • Complete control over your investment in real estate is possible. The decision to rent it out to generate passive income, to make repairs or improvements and to sell it in the future is in your hands.
  • The value of real estate properties appreciates over time. It is one of the rare assets that rise with inflation. Even during tough times, it is less volatile. When the economy is down, you can still relax in your home.
  • A property is a source of satisfaction. You can take pride in its ownership. Since it is tangible, you have a constant reminder that years of hard work definitely pay off.

 

STOCK MARKET

  • Stocks are low maintenance. Investment in it can be left alone after the initial purchase and it will still pay out dividends. Because it requires less work, you can focus your attention elsewhere with confidence that your investment is still moving.
  • Investing in stocks is doable even for young investors. It is even preferable to start young to maximize its potential growth. Shares can be inexpensive and you can determine its volume.
  • When you buy shares of stock, you buy a piece of a company. The returns you earn is invested in prominent and are persistently successful, companies can certainly be of considerably high value. And historically, stocks have a high rate of return.
  • With stocks, you can invest not only in your own country but even in different countries and in various sectors.

Why Real Estate is still the best investment class?

When one wishes to invest his or her money in a place wherein a long-term viability and return on assets are at a higher rate, real estate investing is the best choice for you. Real estate investing provides for a more controllable amount of risks that other financial assets cannot match. It’s tangible nature also gives the investor a more peace of mind as real estate pricing seem to be more constant as compared to stock market investments.

However, there are also risks involved in this type of market. These risks could be more tricky to analyze in relation to the constant movement of the market, it can be easily affected by the performance of a particular neighbourhood that could endanger your credits where the property is situated, the need for a larger capital to actually invest in the real estate industry, the nature of the property which is less liquid than other financial assets and lastly, the taxes that come along with it. Stocks and real estate are both smart investments, but the right one for you will depend on your own personal preferences. If you’re looking for quick high returns, stocks may be the better option for you.

The biggest advantage of investing in Real Estate gives you is you can buy below market, add value and rent for positive cash flow. If you buy properties right you can make more than your initial investment back before you even rent the home. Your cash flow can provide you lifetime income with no retirement calculators and you have control over your investment to increase its value.

Regardless of which one you choose, it’s crucial to ensure that you research the investment opportunity carefully. Real estate can offer great returns, but you need to choose the right property. The wrong property can lead you owing more than the property is actually worth. The same can be said for stocks. Invest in the wrong company, and you may see your investment go down the drain.

Sources: blog.zricks.com

Essentials To Know About the Property Transfer

Essentials To Know About the Property Transfer

November 19, 2018 in Investment News, Real Estate News

Nothing can match the joy of buying a Property! We all take months to finalize a property, and then invest our hard-earned money and life savings in buying a Home.

But that’s not where your Home buying journey ends. Most of us are unaware of the post-purchase paperwork that we would need to complete.

Managing the countless legal paperwork which one requires to do for buying a Home is an extremely lengthy process. One such category of legal documents is the Property tax record. Indian Home buyers are unaware about changing the records in the property records when a property changes hands. Although the Municipal authorities maintain the tax record, if the change in ownership is not done, then tax receipts are generated in the previous owner’s name.

Here are two significant aspects of the property transfer process:

Changing Name in Property Tax document
For changing the name on the property tax document, you need to submit a few documents to the Commissioner of Revenue, the post which the verification is done in 25 to 30 days. Following are the documents that you would require:
1. Attested copy of the sale transaction deed
2. Receipt of tax last paid
3. Duly filled the application form with signatures
4. No Objection Certificate from the associated housing society

Mutation of property

This is a process which helps in transferring the title ownership from the property Owner to the buyer after the property is purchased. In common language, it is also known as ‘ dakhil kharji’. It helps the government charge taxes to the new Owner of the property.

All you need to do is submit an application to the Tehsildar with a non-judicial stamp on it. The most essential document is the No Objection Certificate (NOC) for purchase case, and an affidavit for the inherited case.

Sources: blog.magicbricks.com

Dos And Don’ts For NRIs Investing In Indian Realty

Dos And Don’ts For NRIs Investing In Indian Realty

October 24, 2018 in Investment News, NRI News

Besides exercising necessary due diligence, NRIs also need to adhere to certain specific laws and regulations, while buying, selling, or renting out real estate in India

The realty market in India has always seen considerable interest from the Indian diaspora, as an investment avenue. With developers constantly striving to woo non-resident Indians (NRIs), they can choose from a variety of options, in the residential and commercial segments.

“The realty market is in the midst of a slowdown and this is the right time to invest,” says Kalpesh Patel, head – international sales, Rustomjee Group. “Developers are offering good deals and benefits such as flexible payment plans, subvention schemes, etc. Although demand still exists at the local level, buyers are playing a wait-and-watch game. NRIs must take optimum advantage of this situation,” suggests Patel.

Buying and Selling

An NRI can either come to the country and buy or sell a property or give a Power of Attorney (POA) to a relative and get the transaction done, without coming to India. NRIs can also avail of home loans in India. The documents for the loan may vary, according to the country in which the NRI is settled. Generally, the term of the loan will be 10 to 15 years, while the amount that the NRI is eligible for, will vary based on age, income, education, etc. To finance the property’s purchase, it is advisable to use a non-resident external (NRE) account, as this will help the NRI to take back the capital invested in the property when they resell the property.

Investing for the Future

“For NRIs who are on the verge of retiring and planning to settle in India, this is the right time to invest,” advises Ashwinder Raj Singh, CEO – residential services, JLL India. “Social infrastructure in most of the large Indian cities has improved a lot while civic infrastructure is also being ramped up. As more hospitals, schools and shopping malls come up and connectivity improves, it will give rise to better standards of living. This will directly enrich the quality of life after retirement,” Singh adds.

Once the primary residence is secured, NRIs can also use surplus funds, to invest in a second apartment and use it to generate rental income. However, they must be aware of all the bye-laws and regulations that apply to NRI investors, especially with respect to taxes, as rental income is taxable in India. It is also taxable in other nations, except in cases where a treaty exists between the two involved countries, with regards to double taxation, he points out.

“NRI investors should avoid projects by unknown developers. Numerous buyers have fallen into difficulty, by putting their funds in projects that lacked mandatory clearances and fell short of even the minimum standards of quality. Unless an NRI plans to visit India and evaluate projects, s/he should opt only for reputed developers. In all cases, NRIs should strictly verify points, such as the track record and brand visibility of the developer, the social and civic infrastructure available in the location, the amenities in the project and the timelines for possession, in the case of under-construction projects,” cautions Singh.

A project that is targeted towards NRIs, is no different from other offerings in the market. A property should be evaluated, purely on the basis of its location and amenities on offer, the legal validity of its title and the developer’s brand image.

Sources: housing.com

India Office Leasing Tops 32 Million sq.ft. in First Three Quarters Of 2018

India Office Leasing Tops 32 Million sq.ft. in First Three Quarters Of 2018

October 13, 2018 in Investment News, Real Estate News

With sustained interest from occupiers led by the technology sector, commercial leasing activity across India has crossed 32 million sq ft, up 7% from a year ago, across India’s top 8 property markets in the first three quarters of 2018.

Office space absorption during the September quarter rose 3% from a year ago and 12% sequentially to 10.9 million sq.ft.with Mumbai, Bengaluru, Hyderabad and NCR accounting for almost 80% of the leasing activity, said showed data from property consultant CBRE South Asia.

Occupiers from the technology sector, with a share of 48% of total leasing, drove office space take-up in the country during the third quarter. Occupiers from the engineering and manufacturing sector with 14% share were followed by co-working and business centre operators that absorbed 11% of the total leased space.

“India’s economic growth continued on its upward trajectory and real estate services along with financial and professional services sector contributed to this economic surge as it grew from 5% in the previous quarter to 6.5% during the review period. Sectors such as BFSI, engineering & manufacturing, and agile/ co-working/business centres are likely to account for a larger share in leasing activity going forward,” said Anshuman Magazine, Chairman, India and South East Asia, CBRE.

Interestingly, India had witnessed 42 million sq.ft.office space absorption in 2017, while the first nine months of 2017 had seen absorption of 30.1 million sq ft. Even as several mid-to-large-sized deals were reported in Bangalore, Hyderabad, Pune and Gurgaon, more than 30% of the transaction activity was reported in SEZ space.

Similar to the previous quarters, office space take-up was dominated by small- and medium-sized transactions. Mid-sized transactions ranging between 10,000 sq.ft.and 50,000 sq.ft.accounted for around 45% of the transaction activity, while small-sized transactions less than 10,000 sq.ft.had a 42% share.

The share of large-sized deals with over 1 lakh sq.ft. size increased to 7% during the quarter. The agile workspace sector continued to witness a strong growth momentum, with global and Indian majors expanding their footprint in tier 1 and tier 2 cities. Co-working and business operators leased about 3.3 million sq.ft.space in the first three quarters of the year, almost doubling their take-up reported in the first three quarters of 2017. Other sectors such as Banking, Financial Services and Insurance (BFSI) with 7% share also contributed to the increase in leasing activity.

“The trend of agile spaces is rising during a booming start-up era, even as corporate are drawing up fluid expansion and occupation plans. Occupiers are also expected to keep strong checks on space utilization ratios and innovation in workplace strategies while expanding their footprint and implementing their expansion plans. Also, SEZs are expected to account for a larger share of the upcoming supply over the next few quarters. Given the approaching sunset date, we anticipate an increase in demand for SEZ s space,” said Ram Chandnani, Managing Director, Advisory & Transaction Services, India, CBRE South Asia.

Pre-leasing activity rose in during the quarter, largely in Bangalore and Hyderabad, driven primarily by tech and BFSI corporates. Overall, the country witnessed more than 12 million sq.ft.of pre-commitment transactions in mostly under construction assets in the first three quarters of the year, the report said.

On the other hand, supply addition during the quarter dipped marginally by 1% from a year ago to 7.1 million sq ft. Bangalore and Kochi accounted for 60% of the quarterly supply addition, followed by Mumbai and Hyderabad. Except for Pune, Kolkata and Kochi, all cities reported a dip in development completions on a quarterly basis. Slippages were reported in cities such as NCR, Mumbai and Hyderabad.

Sources: economictimes.indiatimes.com

Why A Brand Name Is Important While Investing In Real Estate

Why A Brand Name Is Important While Investing In Real Estate

October 3, 2018 in Investment

Buying a property is considered one of the biggest financial decisions in every household. A lot of factors influence this decision and one of the key aspects is the brand name. A good brand name is an important factor that you must pay special attention to as it’s not only a matter of dignity and pride but also serves as a measure of the value of the property. Following are some of the reasons why you should opt for a builder who has an impressive repertoire and a strong brand image.

Credibility and Expertise

While you’re looking to invest in real estate, it’s important to opt for a trusted builder to avoid any sort of foul play. Their dealings are very transparent leaving no chance of financial fraud. On the other hand, chances of the property being built on an undisputed land are high with a lesser renowned builder.
There’s also the level of expertise that reputed builders come with. They have a great deal of experience and knowledge about the industry. A branded builder will offer apartments with impeccable facilities and superior aesthetics without compromising on the quality of construction.

Delivery on Time

When you’re purchasing a property from a reputed builder, you’re most likely to acquire the apartment on time. They make it a point to not disappoint their customers and ensure a timely delivery of apartments no matter what. Moreover, projects developed by reputed builders are all RERA certified. On-time handover is one of the main highlights of the RERA bill, making it even more certain that you will receive the keys to your new home on the promised date.

Greater Return on Investment

If you’re planning to sell or rent out your apartment, the brand name of the property is going to work in your favour. You are certainly going to enjoy huge revenue from it because the value of the property automatically increases when it comes from a branded builder. Additionally, reputed builders always develop properties in either upcoming localities or well-established areas, with emphasis on good social infrastructure and connectivity. With all these boxes checked, you are guaranteed to enjoy higher ROI.

Ease of Home Loan Sanctioning

A reputed real estate brand comes with the added benefit of easy loan sanctioning. If you’ve invested in a property that has been developed by one of the leading and most popular builders in the market, then the chances are high that your home loan gets sanctioned without much hassle.

Most reputed builders have tie-ups with the prominent banks like ICICI, HDFC, and SBI which drastically reduce any risk of fraud or malpractice. These banks trust the reputed builders and that makes your loan sanctioning process a piece of cake! Avoid making the common mistake of investing in a real estate property developed by a less renowned builder as you might get your hard earned looted.
Invest in a property that has established a bond of trust with its prior customers and has earned a good reputation in the market. One such builder is the House of Hiranandani that has been changing the landscape of real estate in India. Our developments stand as proof of superior aesthetics and top-notch quality construction with all the global amenities.

Sources: www.zricks.com

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