The State Government is focusing on the rental housing model and aims to have three
lakh flats/tenements ready in the next three years through the PPP model, Government of
Maharashtra, Additional Chief Secretary and Mumbai Metropolitian Region
Development Authority (MMRDA), Metropolitan Commissioner, Ratnakar Gaikwad,
said.Hiranandani said he does not foresee real estate prices picking up at least till about a
year. “I don’t see prices rising in the next 3-12 months. Housing demand is expanding
rapidly but prices right now are stagnant,” he said. Prices may increase steadily after a
year as the market takes away ready products, he said. “In five years, there would be a
100 per cent jump in demand over that which existed during peak times before the
meltdown,” Hiranandani added.
Assocham Recommends Escrow Account for Developers for Transparency in Real Estate
Add comment | August 6, 2009
The chamber said such accounts can also be used for payment of property charges,
insurance liabilities and maintenance charges on a regular basis. ‘Mistrust towards all key
stakeholders continues to hamper real estate growth,’ Jindal said. According to him, this
mistrust depresses consumer confidence and delays purchase decisions, while also
limiting the entry of major international players to bring competition and best global
practices to the industry. Read More »
Money by Realty Focused PEs Decline by 72 pc in Q2
Add comment | August 6, 2009
The report said that investors have turned cautious and are now looking at more
established markets. “During this time of economic instability, investors are especially
cautious when making new commitments, and are therefore in many cases looking
towards more established markets, rather than emerging markets, which are perceived as
being higher risk,” Preqin said. Although money raising by the private equity real estate
industry has declined sharply, the fall is particularly noticeable for funds targeting Asia.
Read More »
Country’s capital New Delhi continued to witness a decline in retail rentals of 25 per cent
and ranked 69th in rentals among the list of major cities across the world during the first
quarter of 2009, according to global real estate consultancy CB Richard Ellis.
Prime retail rentals continued with their downward trajectory worldwide during the
period which saw New York maintaining the top slot among cities with high rentals
despite a 10 per cent annul decline. New Delhi ranks 69th globally with an average rental
of $109 per sq ft each month. Read More »
With risk appetite of high net worth customers increasing, wealth managers are
recommending private equity investment of 5-10 per cent of one’s portfolio with special
focus on real estate and infrastructure sectors. The ticket size of such investment varies
between Rs.10 lakh and Rs.25 lakh, depending on customer’s risk profile.
Managers expect to generate returns of 18-25 per cent CAGR on such investments. HNIs
earlier refused to take wealth managers’ call to invest in PE funds. The current market
rally supported by better than expected Q1 results and positive global cues has now
prompted HNIs to take higher risk and take to PE investments. Read More »
Govt should appoint real estate regulator
Add comment | August 4, 2009
Industry body Assocham today said the government should appoint a real estate regulator
to help expedite the redressal of consumer grievances. ” There is a need for an efficient
and focused regulatory body to overlook functioning of the real estate sector in order to
insure the industry development and safeguard of consumer interests in line with
international benchmark,”the chamber said.
The real estate regulator would ensure that the consumer grievances against developers,
development authorities, real estate agents and financial institutions are addressed
without any delay, it said. Read More »
Taking advantage of the fall in property prices, real estate firm Anant Raj Industries plans
to invest Rs 450 crore to acquire a land bank, which it would use for developing low-cost
housing in north India. The Delhi-based firm has Rs 750 crore as cash-in-hand, out of
which, it has earmarked Rs 450 crore for land acquisition while the rest would be utilised
to complete existing projects.
“We feel this is the right time to look at low-cost housing and the most important element
of low-cost housing is land which is now available at an attractive rate,” the company
Director and CEO Amit Sarin told PTI. Sarin noted that land prices have gone down by
up to 70 per cent in north India. In prime areas of Delhi and Gurgaon, land prices have
declined by 30-40 per cent. Read More »
Despite the global financial meltdown owing to overexposure to the housing sector,
Indian banks were quite bullish in their investments to the real estate. The total
outstanding credit to the real estate sector by Indian banks, both government-owned and
private, at the end of March 2009 was Rs 91,500 crore as against Rs 63,000 crore till
March 2008. This was not only an increase of 45% over the previous year but was more
than double the amount of Rs 44,000 crore exposure of these banks during the boom
period of 2007.
The major portion of this huge lending came from government-owned banks. This
despite the fact that RBI had prescribed regulatory limits on banks’ exposure to
individual and group borrowers as a preventive measure given the sub-prime crisis in the
western world. As if it was out to reap the best out of the crisis, Punjab National Bank
(PNB) lent more than Rs 11,000 crore from June 2008 to May 2009, registering an
increase of at least 389% over the previous year when its total outstanding credit to real
estate sector was merely Rs 2,255 crore. Read More »
The booming real estate market that received a jolt during the slowdown last October-
November seems to be recovering. People are slowly purchasing, but only for personal
use. Not for investment purposes.
“In the last few months the real estate market has undergone major changes. The
slowdown that migrated from the US has got corrected in India now. The prices have got
corrected. And whatever pent up demand was there in the market has started getting
converted into business,” Santosh Rungta, president Confederation of Real Estate
Developer’s Associations of India (CREDAI), said. Read More »
Encouraged by price correction and lowering of interest rates, the real estate market, after
a period of relative inactivity lasting the first few months of the year, witnessed improved
levels of activity on the part of retail investors in the residential sector, especially in the
low to mid-end housing segment, said experts as well as market analysis reports of the
second quarter in 2009.
CBRE Market View, India Office , published for the second quarter, said: “Level of
enquiries went up and, more significantly, transaction velocity also increased marginally
as compared to Q1 (first quarter) of 2009… However with most of the activity confined
to smaller format offices, vacancy levels remain high. Most developers deferred plans for
launching any new projects, the focus being on deploying the scarce resources on
completing projects in hand.”
Perhaps, the most protracted parts of property management are the synchronization of
rent gathering and increases. So as to abridge your property management for superior
profitability, focus on the listed three items first:
1) Rent should be due on the first day of the month. Some people gather rent founded on
when during the first month an occupant or tenant moved into the place. This is a
disastrous tactic. Knowledgeable property managers will tell you to at all time pro-rate
the rent of the first month and then gather all upcoming rents on the first of the month.
2) Raise rent on all leases at restitution. When signing the lease, it should be implicit that
rents will ascend at the ending of the lease period. The best way out is to make the
resident or tenant agree to the increase in rent in their original lease. People are usually
excited to get a new place and usually agree to the raise on the rent by say $50 after a
year from now.
3) Raise all month-to-month payments at the same time. If you utilize a rigid lease period
with the inhabitant having an alternative of pulling out on a month to month basis, then
plan all increases at the same time. By this means you can send out a blanket letter to all
residents fitting in that category. This is a way of making everyone feel equal as when a
whole group of people receive the same notice they do not feel singled out for the
increase. What is more is that it is easier to modify your bookkeeping/billing program
one time per year for this function than multiple times. Additionally, if you decide
intelligently what time of year to put into practice these enhances, less people would be
going away from your place because of the supplementary rent for the reason that they
will be too active to look for a different place, the weather would either be too hot or too
cold, or they will wish to have stable holidays. The lifestyle of your residents would give
you a fair idea about the best time of the year.
If you develop your business to take benefit of this kind of management process in a
methodical manner, you will discover that property management is not as hard or time
consuming as is generally believed. Property Management can be a magnificent and
money-spinning part of the business.
Do you own a property that needs to be managed? Do you want a reliable property
manager? Why don't you try our property management directory to find one that suites
your needs and requirements?
Property Management
One of the important roles property management companies play is that of acting as
liaison between the landlord and tenant. Their duties include posing appropriate gross
rent, accepting rent, responding to and addressing maintenance issues, advertising
vacancies for landlords, and doing credit and background checks on tenants.
In exchange for the service provided, property management companies charge landlords a
percentage of the gross rent collected each month, in addition to lease commissions.
In addition to managing income and expense related activity, property managers may also
manage construction, development, repair and maintenance on a property. The direction
of repair and maintenance is quite a large part of a property manager's function.
Special attention is given to Landlord/Tenant law and most commonly evictions, non-
payment, harassment, reduction of pre-arranged services, and public nuisance are legal
subjects that gain the most amount of attention from property managers. Therefore, it is a
necessity that a property manager be current with new laws and practices in their given
localities, cities and states.
Excellent property management can only achieved by top-notch managers. To be the best
in this field, one must know and stay updated on local ordinances and state laws; be
highly honest and ethical in enforcing property rules and rental policies; be detail
oriented and organized with paper works; have good communication and computer skills;
like working with the public; have a strong sense of duty and commitment; and be an
exceptional follow-up person.