Current Market Scenario by Anuj Puri

Anuj Puri, Chairman & Country Head, Jones Lang Lasalle Meghraj:

There has been a moderate-to-mid slowdown overall. Retail investments have shown a sharper decline than institutional investments.

Financial institutions are finding it attractive to enter projects at reasonable valuations in the current market situation. Retail investors in residential property probably need to wait and watch till after Diwali to get good value.

Mumbai, Delhi NCR and Pune would have been the best investment options three years ago. The returns were about 30% p.a. Despite the current slowdown, returns are likely to be between 20–30% if an investor holds on for the long term. In the short-to-medium term, they will be considerably lower.

Provided that one does not pay excessively for a property, and further provided that one holds it for a sufficiently long period, thereafter exiting at the right time, returns will be the same. Only the time-frame for these returns has changed – not the potential. It is now a matter of holding power and investor maturity.

Short-term investment would yield much lower returns. To illustrate:

Delhi / NCR- Residential: 7-8%, Commercial: 11-13%
Mumbai - Residential: 7-9%, Commercial: 11-13%
Bangalore - Residential: 6-8%, Commercial: 11.5-13.5%
Kolkata - Residential: 6-8%, Commercial: 11-12%
Chennai - Residential: 6-8%, Commercial: 11.5-13.5%
Chandigarh (incl. Mohali, Panchkula, Zirakpur) - Residential: 6-8%, Commercial: 12-14%
Indore - Residential: 7-8%, Commercial: 12-14%
Cochin - Residential: 5-7%, Commercial: 12-13%

These figures are a reflection of rising property prices and increased risk. Expected returns are higher in riskier markets.

Contributed By : Arun Chitnis

The new Realty Action – The Apartment Action

The trends are changing and the preferences as well in the capital and the regions around it. Delhi has been always known for its business environment, shopping bazaars and stand alone houses where the Delhites have satisfied themselves with either duplex or stand alone houses. However, the living trend is somewhat different in cities like Mumbai and other Metros where living in expensive apartments has always been a matter of pride.

But nowadays such trends can been seen emerging in the capital and the NCRs rather not just emerging but frenzying people. For example, a complete block in Noida that was dedicated to the residential apartments got booked in a matter of few days despite of the high cost of Rs 4 crore.

Well these apartments are worthy of such huge amounts and people going crazy for them as they from offering the ultimate comfort and security, has also become a status symbol for many. These apartments are ultra modern and are associated with various advantages of in-house clubs, gyms, spas etc.

Delhi and NCR are not alone in this race of luxury living but places like Chandigarh, regions around Mohali and Zirakpur are also entailed in full pace. For instance the upcoming township in Mohali called “Ansal API golf Links” by the well-known Ansal Group houses a multi usage mall, a multiplex cinema, and a hotel of international standards and a lot more. Another example that can be considered is the West End Estate of Chadha Group coming up in Mohali. This Estate is to be developed as a sports village where various world class sports facilities will be available to residents of the township only.

It seems like that these trends will soon change the lifestyle of people not only in the Delhi NCR but across India and will leave the so-called contemporary living way behind.

Contributed By : Rahul Gandhi