Thursday, 15 December 2016

Current Economic and Policy Changes lead to a positive 2017 for Real Estate Industry

 With the government seeking advice from the industry experts for the RERA act,  it’s a good move towards building the Real Estate community stronger and making the act feasible for the industry to prosper in the right direction. The act has covered many aspects of the industry but still there are a few provisions in the act that are prejudicial to  the legitimate business of the brokers. There are a few changes that the government should consider keeping in mind the interest of the serious and professional brokers. For example the Single Window Clearance for the developers that will help them to avoid delays. Also, a few qualification barriers should be added for agent to be a registered broker. Apart from this, the government should also try and incorporate a few suggestions from the broker community to safeguard their business as well. 
RERA norms, will bring long-term fundamental changes in the Real Estate sector which is also set to gain from the increased transparency.
With the positive move in the right direction, buyers will feel secure for his investments and will help in regaining the market sentiments.

With the Ongoing Demonetization drive by the Government, we as Real Estate Industry are going to be the biggest benefiters in the long run.  The concept of parallel economy is going to be a thing of the past. This will also help our industry by making it stronger and transparent. With the transactions taking place through a transparent channel, the industry will grow towards becoming more organized and hence increase the general public’s trust in this industry.

In the Long run, bigger and structured companies are going to play a larger role in shaping up the industry and making it more professional with their business model and education system.

With the RERA coming in, the time has never been so perfect for the real estate industry to move in the right direction. Coupled with reforms like Demonetization, FDI in Real Estate and Benami Transaction Act; this industry is going to witness a ground-breaking change in the way real estate is dealt in India. The coming year 2017 is going to be  a great year for the industry and I assume that the annual sales of 2017 will be higher than the combined sales of 2015 & 2016. The significant change in the way business is conducted will also lead to the buyers regaining confidence. The Professional Realtors and Brokerage houses are going to prosper in the long run. 

Tuesday, 29 November 2016

Second Home in Delhi NCR

Second Home in Delhi NCR

1.      What should be the areas of focus in terms of amenities in a project or apartment?
As an investment option, the buyer needs to look at the amenities that are going to be a part of the project once delivered. Since the second home purchase is generally for investment purpose and once delivered it will be reaping rental income for the investor, the buyer needs to ensure that the project has good amenities like swimming pool; separate kids play area, club, gym etc. These amenities are a good tipping point for families who are looking for house on rent.  They add value to your property and help you in quick rental deal.
Also, second home is purchased by joint families who are looking to live nuclear due to long work travels. For these kinds of buyers, it is essential that they invest in a property that gives high security and surveillance, beautiful landscaping and good connectivity.

2.      Which areas in the region are most suitable to buy a second home at?
There are a variety of options in the real estate market, you can have second home in the city and lease it with a steady income filling up your assets. Delhi NCR is a growing market and the real estate sector is picking up momentum in the resale market. Areas like New Gurgaon, Golf Course extension in Gurgaon; Central Noida, Greater Noida Expressway, Noida Extension locations are gaining traction from the buyers for second home investments.
Since the sole motto is investment, buyer prefers the projects by trusted builders who have delivered good quality before and have good expected rate of return in future. The areas that have high infrastructure development plans with good connectivity, metro accessibility, proximity to corporate and retail hubs are always the safe bets to invest for long term.

3.      Other legal issues that the buyer should keep in mind while going for a second home.
As a buyer, you must conduct proper research about the property and avoid any impulsive decisions based on the marketing gimmicks by the builders. While buying a second home, one needs to keep in mind the credibility of the builder and the delivery date promised. Also the buyer needs to do his research and check the project viability and whether the land deed and other title deeds are clear. Also one needs to consider if all the necessary approvals have been taken by the builder for the said property that the buyer is willing to invest in.  

Wednesday, 23 November 2016

RE/MAX Agent count crosses 110000 gobally!

Big news for everyone in RE/MAX: The worldwide network has topped 110,000 agents!
The global network, in over 100 countries and territories, has grown every quarter for four straight years. That growth means more yard signs, more homes sold, more satisfied clients and more top professionals working together to serve buyers and sellers.

It’s another reminder that RE/MAX is the right choice for agents who strive to be great – and for clients looking to work with the best. This milestone confirms that greatness attracts greatness and the immense talents and achievements of the agents have built a brand others want to join.

Quote by Dave Liniger, Founder, RE/MAX LLC- “The people drawn to RE/MAX are a mix of established producers and newer agents aspiring to get better. And the growing agent count benefits us all – it brings more listings, more yard signs, more advertising, more brand power, more phone calls, more web traffic, more referrals and more satisfied buyers and sellers.
So celebrate the fact we’re 110,000 agents strong. And know you’re in good company – because more and more professionals are choosing to call RE/MAX home
Quote by Sam Chopra, Founder & Chairman, RE/MAX India- “ The network’s global presence is exciting to me, and it’s a significant addition to my business. The fact that there are so many services available and that RE/MAX promotes the individual agents makes me very excited. In 2009 We decided that we had the experience, dedication and drive needed to bring the RE/MAX brand to the country. Our goal is to be the dominant real estate organization in the country and we took the master franchise of RE/MAX in India. We play pivotal roles in organizing the local real estate market into a cohesive professional marketplace.”
RE/MAX thrives to grow across the globe and cover the world by appointing the likeminded people in all the countries and further spread the RE/MAX business. The International development team at RE/MAX LLC works very proactively to appoint the Master Franchises across the globe. With a presence in over 100 countries and territories, the RE/MAX network’s global footprint is unmatched by any other real estate brand.
As RE/MAX India our focus is also to build a strong network of agents pan India and target a 4 digit agent count in the coming year.
The Real Estate market of India has always been an attractive market for investment purpose, the reason being the increased economic growth. India is a growing economy and has witnessed many big infrastructure and Real Estate companies keen on undertaking projects in both the big as well as small cities in India. I feel that if our sector becomes more structured and introduces some industry standards, the way it happens in developed countries; the major challenges can be taken care of.
RE/MAX has been a successful phenomenon in around 100 plus countries. It has played a pioneering role in organizing the unorganized Real Estate market in various countries. As RE/MAX India our aim was to recruit and train Real Estate people at various levels of the Business Model to create an unprecedented network spanning the entire country which will not only organize the Indian Real Estate Market but also create an unmatched referral system.

The RE/MAX concept combines maximum commissions and the best support services to attract top agents. The agents share office overheads, pay management fee, and in return receive a wide variety of Real Estate services like International as well as National Referrals, high commissions, benefits from National as well as Region centric advertising campaigns, superior training, professionalism and growing market share. It was something that no one in the Indian real estate industry had thought of but was much needed to enable the agents to not only provide quality services to their prosperous clients but also change the way real estate is taken

Thursday, 17 November 2016

Impact of Demonetization in Real Estate

Impact of Demonetization in Real Estate

The year 2016 has been very imperative in shaping the Real Estate industry with the government of India initiating some key reforms in this sector. The Major initiative being the implementation of Real Estate Regulatory Bill (RERA) on pan India basis. Other key reforms like REITs, Benami Transactions and FDIs in Real Estate. These reforms have a common agenda to bring in transparency in the Real Estate sector and help the industry become more organised and professional.

The latest “Surgical Strike” against black money is the historic Move taken by the Modi Government. The long-term impact will lead to stabilization of economy which ultimately will be in the favour of the Real Estate sector. Since this sector has significant amount of cash involvement, the impact of this government crackdown will be felt in the short term and eventually help in correcting the market sentiments. There is undeniable truth that there is 20-30% of cash component involved in the real estate transactions due to the disparity between the circle rate and market rate.

The ratio of cash involvement is dependent on the type of property transaction. In Primary market majority of the residential purchases are financed through mortgages. Though the sales will decrease for a certain period but eventually with Banks getting richer and having high liquidity, the Interest rates will decrease in the days to come. The service class population who have been sitting on fence to buy the property will finally purchase their long dreamt homes with easy mortgage plans offered by banks. With the lack funds for a developer to park it in a land for new projects, they are also finding it difficult to monetise their land bank to cut down debt obligations. These developers in the short term will fall prey to the cash crunch. To get some money in their accounts, they will have to offer price cuts to sell out the unsold inventory. This will be the Bonanza time for the buyers to purchase their dream home at never before offered prices.

Secondary market transactions essentially involve higher cash payouts. As discussed this is generally due to the variation in the circle rate and market rate of the property. Now that the government has come down heavily on black money, the cash component in property transactions will go down. This will result in a drop-in land prices and land deals will likely see a considerable dip for few months. 
As RERA becomes effective and home buyers are secured under RERA of their investment, sales will additional pick up, especially in the affordable segment, much to the benefit of the government's Housing for All mission. The government has taken some brilliant moves all in sync with the Master stroke of Demonetizing the higher currency from the market. And, since corruption and approvals' bottlenecks are major factors responsible for price inflation, demonetisation, coupled with the government's next big reform to introduce a single-window clearance system, will make property affordable for the masses. 

All in all it is a positive step taken towards increasing transparency in the Indian real estate industry.

Monday, 24 October 2016

Current Scenario of Real Estate in India

Current Scenario of Real Estate in India

With the year 2016 approaching towards an end, we look forward to the New Year and revisit the Real Estate developments and the changing trends in the industry. It makes a lot of sense to revisit all the developments that have happened so far in this sector and how it will impact the coming year of 2017 for Real Estate Growth.

India’s Real Estate Sector is the second largest employer after agriculture and is expected to gain its reputation after the implementation of RERA in each state. It has been gathered that the real estate sector will generate revenues worth US$ 180 billion by 2020 as against US$ 66.8 billion in 2010-11. The real estate industry has evolved over the past decade and have moved towards being a more mature and organized industry. It is moving towards a direction where we are having global investors amongst others seeing the long-term potential as our economy is amongst the fastest growing economies in the world. With a lot of action and regulatory changes, the industry has a mixed reaction but I feel that the year 2017 will be positive for the investment purposes.

Speaking specifically of the year 2016, the secondary market had been booming at a good pace. As a matter of fact, the last two years were more of a policy formation and adjustment phases starting from the supply to the demand phase. As per the industry experts, the market is slow but this slowdown in Real Estate is not an indication of problem, rather it’s a return of normal market rates and a more balanced and mature market. With a majority of home buyers between an age group of 28-35, the changing economic conditions of the country will surely add to consumers’ wallets and allow them to either make the purchase of their first home or upgrade to a new one. The trends like smart cities, green cities, high rise cities, affordable housing etc are attracting a lot of investors and developers to cater to the these buyers. With the upcoming RERA guidelines this is playing a very crucial role in making the developers serious with their delivery timelines. The developers are not trying to put their act together and be RERA compliance and avoid any penalties and fines. Also, with the history of all the undelivered projects in the past, there is now a lot of demand for ready to move in properties and projects nearing completion.

Moreover, the residential market is moving towards the realistic pricing and is attracting the end users who were sitting on the fence to take a decision in buying a property. For them this is the best time to buy Real Estate.  We suggest that don’t expect exorbitant returns in the present scenario but a decent upward graph will be seen in the Real estate prices starting 2017. Investor sentiments are still not that great but it is bound to revive in the coming year 2017. With the real estate regulatory amendments; credibility and positivity is building up confidence in the minds of investors who will sooner or later get drawn back into the market.

According to data released by Department of Industrial Policy and Promotion (DIPP), the construction development sector in India has received Foreign Direct Investment (FDI) equity inflows to the tune of US$ 24.19 billion in the period April 2000-March 2016. The central government is expected to execute a slew of big ticket economic reforms over the next 2 years as it strengthens its presence. Ease of Doing business, freedom to operate 24 / 7 - The central government is taking numerous steps towards cutting red-tape which has delivered positive results.

In 2016, office space demand was mainly driven by IT/ ITeS, e-commerce, start-ups and large consulting firms.   As per the research surveys by research companies, Commercial market remained strong in Q2 2016 with 10.4 million sq ft of office absorption totaling to about 19.2 million sq ft YTD. The demand was well supplemented by the new supply and existing vacant stock, but vacancy levels have gone down in most of the cities due to limited addition of new supply.
The central government took fresh steps to boost foreign direct investments (FDI) in real estate. Several clauses governing entry and exit of foreign investors were relaxed or removed. Several steps have been undertaken by the central government over the last 2-3 years which have helped enhance investment inflow in the country. As per industry data- Foreign Direct Investment (FDI) inflow in the country increased by 29.32% compared to previous year and stood at $40 Billion for FY 2016. The FDI stood at $30.9 Billion for the same period, previous fiscal. Foreign Direct Investment (FDI) inflow in the country increased by 29.32% compared to previous year and stood at $40 Billion for FY 2016. Private equity inflows in the real estate sector rose 33 per cent to Rs. 5,193 crore in the first half of 2016 on an improved investment climate following reforms like the real estate regulatory law, easing of FDI rules and introduction of real estate investment trusts (REITs), according to property consultant. The Indian real estate sector has witnessed high growth in recent times with the rise in demand for office as well as residential spaces.

With the Union Budget, I am sure that the Government is affirmed and committed towards affordable housing and real estate sector by the announcement by RBI on the repo rate cut immediately after the Budget announcement. This cut in home loan interest rates is very beneficial and one of the most effective way of boosting property sales. With it helping more individuals with lower – middle income group to buy their own homes, this will also help to offset the slump faced by the real estate sector. With a lot of initiatives being taken by the central government to boom the Real Estate market, I am sure that with the cash flows in and out of the country the market will get impacted positively. Currently Real Estate is in a mid phase of policy formation and implementation. The need of the hour is to move towards a corrective side where there are realistic rates with realistic transactions taking place. To conclude, the sentiments of the domestic market in buying and selling of Real Estate has changed over a period of time and looking at the current trends we expect a huge turnover in Real Estate transactions by 2017.

Monday, 17 October 2016

Self Promotion for Realtors

Self Promotion for Realtors

We hear over and over that networking is a critical component to any successful business. But there’s something else that goes hand in hand with networking: Self-promotion is a crucial element to your success in spreading your business horizons and attracting new clients. It is a very common saying that in sales, you’re not just selling real estate, you’re selling yourself and that is why in a business like Real Estate self promotion becomes all the more important.
Real estate agents may not have huge marketing budgets. In fact, even agents who work for more recognized brokers need do some personal marketing to stand out from the competition, so it makes sense to have a few dependable low-cost promotion strategies on-hand. Marketing your real estate business does not have to be expensive. Prime time advertisements may be an effective way to get in front of a lot of viewers, but it can also break a typical agent's promotional budget. Luckily there are more than a few low-cost strategies for self-promoting in the real estate business that produce great results.

Take a look at the ideas listed below.

Business cards are one of the effective ways to self-promotion. Sharing your business card not only looks professional but also is one of the easiest and cost effective ways of promoting yourself.  Many Big International Brokerage companies use business cards with our professional pictures on it. It has a very general psychology behind it. Your picture makes your face as a familiar face and people feel that “they know you” when they meet you next!

Keep your elevator speech ready:  It is always good to be ready with your elevator speech about yourself and your business whenever you meet a new person because you never know, he/she might be your next potential client. The best part about real estate is that everyone loves talking about it and is keen to learn what’s happening in the market. Keep your facts and market updates ready so that they find value in what you are speaking. To make clients for lifetime, your first interaction with them should be memorable so you should already have in mind some key points of your conversation with them. 

Presence on Social Media: An active online presence on social media platforms like Facebook, Linkedin, Twitter, Instagram, what’s app etc is also a must to reach out to masses. You should keep posting about your initiatives, marketing activities, best practices, market updates etc and make your profile more interactive rather than jut information sharing. You need to capture every new lead and maintain a contact with all your current and past clients. Strengthen your relationships with them and give them great advice. Once people will start viewing you as an expert, they will themselves come back to you when they need your services.  As a fresher in this industry, make sure you touch base with maximum number of people you can to create your own clientele.

Focus on referrals: Real Estate is one of the biggest financial decisions of a person’s life and a large percentage of your business comes only from referrals. People feel more comfortable in working with a person whom they can trust and with whom they have done business in the past. Referrals only come when you provide an excellent customer service. A simple thing such as wishing your past clients on their birthdays or other special dates is a way to stay in touch and be remembered when they need you.

Also we have to consider the point that as an agent the person has to market himself amongst the clients as an industry expert. He needs to be well versed with the upcoming developments in the real estate in that area of his work. Moreover, the market has been changing in the Indian realty sector and there has been a lot of efforts put together to furnish the real estate demands and the sanity of this industry. The goal of self promotion is to be remembered in a particular way, ideally, right at the time they need your service.  You cant just wait around for others to promote you.  Get out there, promote yourself and do a great job for those you work with.

Sunday, 16 October 2016

Trends in Real Estate Brokerage

It is very interesting to see these new trends taking up the traditional methods of doing Real Estate. It is a fact that gone are those days when the customers used to completely  rely only on Real Estate brokers and agents for all the information required for their home search. The property portals now provide sufficient and the right amount of information in just a few clicks so that customer knows what he/she want and what fits in their budget. The role of an agent has now shifted from the first point of contact to a Consultant whom the buyer finally contacts for an expert opinion, guidance on financial planning and a quicker closure. Even with so much of information and facilities available online, in the end you would still need a Property Consultant to guide you through the process as the information available online is not sufficient to crack a transaction. You would always need proper expertise from the time of the booking till the last piece of documentation is complete. Internet has been successful in shifting their role from the keeper of the listing to a guide and a negotiator for their client.

Internet is now the first point of contact when it comes to research and it has a huge influence on the final decision. With so many opportunities available sitting in your comfort zone and without doing the leg work, online Real Estate helps the buyer to search for properties in a city where he/she doesn’t reside. Online resources provide us with all the requisite information to do their preliminary home research without actually visiting the project site. With maximum amount of information provided about a particular property with reference to the property details, prices, locations, 360 degree view, nearby amenities, contact details of the Consultant, price and feature comparisons with other similar projects etc; the trend of researching online is the technique followed by most of the home buyers now days. Also, seeing the success rates and the increased number of individuals using these platforms, the online portals have started incorporating processes to verify the listings and avoid any kind incorrect listing on their portal.

Moreover the age bracket of people buying or investing in property has drastically gone down and a lot of young people who are technically savvy prefer to go online before anything that they purchase, be it a phone or the most expensive investment of their lifetime i.e. their home. They look for listings through mobile apps and websites for searching the house they want and then consult a Real Estate professional who could show them the properties they have shortlisted. With Internet having so much influence on the final buying decision of today’s consumer, most of the retailers like Snapdeal, Amazon, Flipkart etc are working heavily on their app based shopping platforms as they are getting majority of traffic from the mobiles. Moreover, a lot of “angel investors” have been investing in these start –ups to capitalize on this booming market.