If you are planning to look for an apartment for rent, you will see that the owner should have fixed a price that you are to pay.
However, if you feel that you have all the required amenities and find it little expensive, then you will try to negotiate for a reasonable rate before agree for the deal.
The sum of lease will be contingent from the time the property is in the market. Check whether the owner and the house is reliable and whether he has good credits and references. Further, ensure that the flats of your type have been rented for the same amount in the vicinity
If you’re a renter, then make sure that you cross check with the price of other rental prices in the realty market and then bring it to the table.
Keep Updated with the Present Market Rates
Before getting a home for rent, make sure that the prices are average in the city where you prefer to stay. Speak in the neighborhood apartments and go through the review in classifieds and ensure to note on how much it is paid in that locality. Check on the Apartments Rate in the Market
If the apartment has not been rented for a while, then the owner might be willing to negotiate more and offer rent at a lower price. Since the property was stagnant for few months the owner will not tend to lose the money that you would have decided to give. Prepare Mentally
Be precise and bold to negotiate on the amount for a reliable rate that you desire, else it would be a tough time to get rents at cost-effective price. Ask guidance from your pals and colleagues who are well-versed in negotiating if you hesitate to speak to the seller if you have planned to choose that specific apartment. Proofs to be taken
Bring all the requirements like copy of bank balances, credit reports and references before meeting the seller. Ask the owner to do a background check, credit check and verify about the place of work etc. Flexibility in Rents
If the amount to be payed is not negotiated upto your expectations ensure whether the facilities and usage of things are inclusive within the rent. Find out if you have any additional facilities and allowance like free cable, free Extend Your Lease on Lower Rents
As a lot of money gets spent when every tent vacates or comes in, the owner may decide to offer you an extension on your lease with the same rental rate. In such cases, do not avoid but instead sign and extend your lease to the maximum since it is a rare opportunity.
Think and analyses on these guidelines, choose the best of flats to rent to enjoy a stress-free and peaceful living.
The ORR connect and social infrastructure make the area a strong and viable long term investment.
Khaja Guda on Outer Ring Road enjoys special preference by both developers and buyers. The reason is not just its strategic location but also guaranteed ROI on properties housed in this locality. Its price history since the last 6 months has been impressive and has registered an increase by 1.7 percent as per Magicbricks research.
Khaja Guda shares its border with Nehru Outer Ring Road. Its popularity amongst consumers can be because of its nearness to the IT hubs of Financial District and Hitec City, both located within 5 to 7 km radius.
Mehboob Khan, marketing manager, Ace Constructions talked about the locality. He said, “Not only does the locality have close proximity to the IT/ITeS hubs but another positive aspect could be the new developments coming along in the locality. Government efforts to improve its buy legal anadrol cervical stretches trapezius connectivity to Outer Ring Road has further captured the attention of buyers and developers.”
Increasing property values
Khaja Guda witnessed a price rise of 1.7 percent in the Apr-Jun 2016 quarter. In the Apr-Jun 2015 quarter the average price of apartments was Rs 4,361 per sq ft which increased to Rs 4,636 per sq ft in the same quarter of 2016. The graph depicts that in the last two quarters, the average property values have increased.
Connected and developed
Khaja Guda being one of the localities along the ORR, is well-connected to the Financial District. Its growth potential is immense as prime areas such as Manikonda and Hitec City are also linked through the ORR.
Khan adds, “Some major international schools are within the vicinity. The airport is only a couple of minutes drive away.” The IT hub of Hitec City has garnered attention of many IT professionals who would like to stay close to their work spaces. ORR stretch in Khaja Guda being the closest, within 3-km distance, tops buyer’s preference charts.
Nehru Outer Ring Road is connected with the Gachibowli Flyover and Old Mumbai Highway that connects Khaja Guda with Gachibowli, Nanakram Guda and many other significant parts of the city. Telangana State Road Transport Corporation offers public mode of transport.
Investing in Khaja Guda
If you are a first time buyer, Khaja Guda will not disappoint you. The locality offers both under-construction and ready-to-move-in properties. Popular housing formats are 2, 3 and 4BHK units.
Under construction properties can be priced from Rs 30 lakh to Rs 2 crore and above. Ready-to-move-in units are priced up to Rs 3 crore depending upon its size and amenities.
In terms of amenities, residential projects offer facilities keeping in mind the needs and requirements of professionals, families, kids and elderly citizens. New constructions offer modern amenities such as parking lot, cafeteria, drinking water, round-the-clock security, bench seating arrangements, club house, water storage, elderly parks, among others.
However, it is advised to check the amenities yourself as every project differs from another. Also, invest in amenities that you will use. Buyers in the past have complained that they pay a hefty annual deposit for the maintenance of facilities that they might use once in a year only.
The city markets witnessed a 25 percent rise in new launches and more buyers are coming forward.
Optimism rides high in Hyderabad’s real estate market. Investors will be delighted to know that residential inventories are moving as buyers become enthusiastic towards making a purchase. Developers have already caught the pulse of the market and as a result one can witness new launches.
Supply of residences
The city markets witnessed a 25 percent rise in new launches by reputed developers. This is a mammoth change in the attitude of the developers who last year were extremely cautious. Late last year, there was rather a decline by approximately 10 percent in the number of launches. Ready-to-move-in properties also saw demand from consumers.
If the current sentiment and transactions continue, the market will endure stability in times to come.
As a buyer or an investor, one can expect all kinds of property types if interested in making a transaction. Average value of properties which is most in supply is Rs 3,000-4,500 per sq ft.
A healthy mix of local and reputed developers are optimizing the positive sentiment. Some of them include Godrej, Mahindra Life space, Prestige, Lodha, TATA, etc. The presence of strong names is also suggestive of the future potential of the real estate market. Most of the big names are offering modern amenities within gated housing societies.
“Local buyers are opting for affordable properties which is understandable. Hyderabad is known to be a price-sensitive market, therefore the new inventory mostly settles in this price category,” says Siva Sankar from S4 India.
Triggers of consumer demand
What triggered the change in attitude? Several reasons actually. Infrastructure development can be one of the prime reasons behind the optimism riding in the market.The state government has painstakingly taken steps to initiate city development which will boost consumer demand.
The government has brought about a change in policies which favour the entry of companies within city limits. This has been quantified by a report which estimated 107 percent growth in demand for office space in the early months of this year. To name some biggies Amazon, Micromax, Google, etc are expected to better the employment market of the city. The ripple effect would be the development of the residential market. This effect can already be witnessed as acclaimed developers are constructing projects along the ITI/TeS corridor indicating confidence amongst buyers. Apart from the ITI/TeS industry, the manufacturing domain has also fuelled residential demand in the region.
Like other cities, connectivity should also be factored in for infusing optimism. The Metro project will improve connectivity to other parts of the city. The metro link between Miyapur to LB Nagar is anticipated to bring in a significant change in the lives of daily commuters. National Highway-9, connecting Hyderabad and Pune and Outer Ring Road (ORR) connecting to other areas of Hyderabad, will also contribute in improving the connectivity of the region.
Commercial developments in nearby localities such as Kukatpally and Miyapur will also improve consumer demand. Proximity to ITI/TeS zones in Hitec City and Gachibowli can also improve transactions in the market.
Areas with new launches
Tellapur, Gachibowli, Lingampally and Kondapur in the north-western node of Hyderabad are some areas with the highest number of new launches.
The popular property configurations include 2, 3 and 4BHK units and property types available mostly comprise of apartments and houses and villas. The budget brackets however vary.
Amenities being offered are modern but may vary depending upon the developer and the property values. The spectrum of amenities include: In the next 5 years, the city market has the potential to enjoy up to 7 percent property value appreciation. With so many positives in favour of the real estate market, Hyderabad does indeed ride on optimism.
Share with us your expectations regarding home price movements and your decision to buy a house.
Source: Namrata Ekka, Times Property, Magicbricks Bureau/ Hyderabad
Why NorthFace Services?
NorthFace services is an independent Property Management and Verification company backed by experienced professionals to provide you with best Service and genuine advice on property Management and buying. NorthFace is the one and only property consultancy in India to think on behalf of the customer and provide with detailed analysis on the property which client proposes to buy.
We provide professional services to take care of all aspects of Hyderabad Real Estate needs of NRIs. This is the right place for you because we are fully committed to meet your property management needs in Hyderabad while you are abroad
We offer our clients with various services in the core areas of property consulting, verification, valuations/appraisals of the proposed property, future development of the property along with the surroundings i.e. upcoming government plans & projects, Competitive analysis of the property and legal advice on land registrations. NorthFace is a service provider & NOT A BROKERAGE FIRM. We are not real estate agents or brokers, we will work 100% for the customers and make sure our customers are not victims of fraud or misrepresentation of real estate agents and brokers. Our thumb rule is to provide our clients with useful and strategic solutions for a profitable property transaction.
Despite having a sizeable customer base with high consumption and retail spends, modern retail format stores and malls in Hyderabad stands at a meagre 9%, the lowest among top seven cities in the country. This reflects a big opportunity for growth, as per a report.
While it has been known for a while that Hyderabad is an underserviced modern retail market, research from Knight Frank suggests that the city is set to double its retail spends in five years and this perhaps will make the city be seen in highly favourable terms by PE funds and national builders alike.
Samantak Das, chief economist and national director, research, Knight Frank, says “Hyderabad per capita expenditure on consumption is higher than Chennai, but is a hugely underserviced. In our estimation, based on NSSO and many other inputs, in Hyderabad people are spending Rs.51,000 per person per year only on retail expenses (retail here not only includes apparel and fashions, but electronics, food, and so on). This money is being spent not only on mall and modern formats that is certainly driving spends, but also on the other smaller retail stores, including ecommerce. But as modern retail is only 9 % of total expenditure (Bangalore has 26 percent), there is a clear indicator of the space that can be occupied by modern retail format stores. Says Das, “In rest of the cities we have seen transformation towards modern retail a little earlier, but there also formats that have not been always successful in the past.”
Today, there is more clarity on what works with the Indian consumer in the long run. The location, store size, price points, product mix, catchment area, and overall experience decide if any retail mall works, as footfalls are not the only indicator. Even the convenience of the entrance and parking available matter, and India has any number of malls that don’t work as well as they could just for these reasons.
An interesting new trend is that many new malls are dedicating 35-40 percent space to f&b and entertainment while department stores in malls are truncating space as they are competing with entailers as well.
In a recent report JLL India stated “Fast fashion is emerging as an important and growing category in the Indian retail sector. Consumers, on an average, are buying apparel eight to ten times a year now compared to a few years ago, when it was lesser than half a dozen times. Retailers also now change their stock several times a year, and provide latest fashion merchandise all year around.”
While buyers are becoming more discerning, in India, destination malls have not worked so well. As per research, on an average, people do not want to drive more than 20 minutes to buy anything. So each modern retail format store normally works best when it serves the demography that surrounds it, unless it is a high-end premium store with exclusive products. Returns are also impacted when there are too many malls in one space.
Increasingly, across India, unless malls are delivering a somewhat unique experience, they are finding long-term loyalty difficult to sustain. It is estimated that by the year 2040, modern retail penetration in Hyderabad will increase to 50% from the current 9%, with both brick-and mortar and e-tail formats contributing significantly to the growth.
Dipal Gala, Times Property, The Times of India, Hyderabad
The Goods and Services Tax (GST) is the most radical taxation reform that is set to alter India’s economic prospects. A single indirect tax, encompassing all goods and services, is surely a welcome change. GST is built into the value-added structure that would eliminate the cascading effect of taxes and is expected to boost tax collection by making compliance easy for retailers and other businesses as also reduce overall taxation levels. The results, however, will be evident only two-three years after GST gets implemented.
The existing, top warehousing hubs are:
Delhi-NCR, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad. These eight city hubs put together had a cumulative supply of organised Grade-A and Grade-B warehousing space of around 97 mn sq ft in 2015 and this is expected to grow to around 116 mn sq ft by the end of 2016. Moreover, GST will result in emergence of new hubs: Belgaum, Bhubaneshwar, Coimbatore, Goa, Guwahati, Indore, Jaipur, Kolhapur, Lucknow Kanpur, Ludhiana, Nagpur, Patna, Raipur, Ranchi, Vapi and Vijayawada. Though GST will give a big push to the manufacturing, warehousing and logistics sectors in India, there are implications beyond these sectors too. The retail industry and residential property buyers stand to gain in particular.
Benefits of GST to different sectors:
Cost reduction from manufacturers:
As the current tax structure has three layers at the central, state and city-levels, manufacturing units have to shell out a good amount of money to transport their goods. They end up paying multiple taxes on the transportation. Once GST is rolled out, there will be a common tax structure and thus, the burden of paying multiple taxes will go away. Such units will not have a varied tax structure for transportation of their goods to different locations and will not have to pay each time they transport goods, thus, reducing the overall cost.
Cost reduction for logistics players:
Logistics players create a stock transfer between inventory stocking points within states to avoid this multi-tax scenario. They have a large number of smaller warehouses at various locations amounting to more than 50 small warehouses in some cases, which increases the overall cost of logistics. Also, management of such small warehouses increases the cost and reduces the overall efficiency of the logistics players. With the implementation of GST, the tax burden will reduce and thus need to have such a fragmented warehouse system will decrease.
Hub-and-spoke syst tem:
Organizers will now be able to explore a different distribution model such as setting up a mother warehouse and regional distribution hubs, which will be different than the traditional carrying and forwarding (C&F) distributor-based models currently adopted.
Merger of smaller warehouses and development of new technologies:
With a new tax structure, the focus would shift on efficiency rather than tax saving (through the means of smaller warehouses). The smaller warehouses will merge to form a more efficient warehouse system. The current scenario prevented use of new technologies as the cost structures in place resulted in margins of less than 5% on a turnover of few million rupees. Also, installing the latest warehouse management software at multiple warehouses is a costly affair. With implementation of GST, smaller warehouses will re-align merge into more productive and logical locations. Without the tax burden, automation will give excellent cost benefits.
Increase in organised warehousing sector:
As a result of the GST, there will a reduction in unorganised warehousing. Price charged by the organised sector will reduce the price advantage that unorganised sector presently enjoys.
Reduction in transit time:
The introduction of GST will reduce transit time taken for border crossings and paper work. The retail industry too will see an indirect impact due to increased efficiencies in the supply chain. The cost to customer, which is linked to taxation, will go down as the multiplicity of taxes will no longer apply.
Currently, in the case of buying an under-construction flat, a home buyer needs to pay both Service Tax (4.5%) and VAT (1% in Maharashtra, varies from state to state). Additional indirect taxes are paid by the developer during procurement, which get built into the cost of an apartment. Stamp Duty (5% in Maharashtra, varies from state to state) which is payable on property transfers, is not going to be subsumed into the GST. The direct impact of GST on real estate, in terms of tax outflow for developers and consumers, will depend on whether the final GST rate is more or less than the taxes paid currently. The compliance costs will go down too.
It is important to note that the real estate sector shares positive symbiotic relationships with more than 250 other sectors such as cement, steel, IT, BFSI, etc. Due to this, the benefits or drawbacks of GST on each sector will also have an indirect impact on real estate and vice versa. At this point in time, we may see very limited tangible benefits on the real estate industry but the cascading effects will definitely be higher.
Anuj Puri – Chairman & Country Head, JLL India
Source: Times Property, The Times of India, Hyderabad
New Delhi: The goods and services tax (GST), cleared by the Rajya Sabha on Wednesday, is expected to benefit the real estate industry, though the impact will depend on the final GST rate.
“The enactment of this law will single-handedly solve many of the challenges faced by the real estate sector and help in pulling the sector out of its long slumber,” said Parveen Jain, president of the National Real Estate Development Council, an autonomous industry body under the ministry of housing and urban poverty alleviation.
The real estate industry contributes about 7.8% to India’s GDP and is the second-largest employment generator after the IT industry.
However, the direct impact of GST on real estate, in terms of tax outflow for developers and consumers, will depend on the final GST rate.
“It will be important to see what the final rate of GST would be because if the rate is higher than the existing cumulative taxes, it will certainly be a dampener as it will increase the final cost for buying an adverse reactions under-construction flat and defeat the purpose of the bill,” said Neha Hiranandani, director, House of Hiranandani, a property developer based in Mumbai.
After a majority of states approve the constitutional amendment, Parliament will need to pass another bill to implement the tax. Finally, a GST council made up of federal and state officials will decide the overall rate, which may vary for different goods.
“While it is still too early to definitively predict the bill’s impact on the real estate sector, we can expect the sector to benefit in the long term on account of rationalisation in tax-related compliance and slated gains in related sectors such as cement, steel, IT and BFSI (banking, financial services and insurance),” said Anita Arjundas, chief executive of Mahindra Lifespace Developers Ltd.
“Under GST, developers would see lesser burden of tax on input items like cement, and steel, as tax credits would be available for set off at various stages. This can lead to lower construction costs for developers across all asset classes, which could likely be passed on to property buyers,” said Anshul Jain, managing director for India at Cushman & Wakefield, a property consultant.
However, the fact that the stamp duty payable on property is not subsumed in the GST could prove to be a dampener for buyers.
With fast paced development, West Hyderabad is gaining momentum and seems like a good option for investment.
Property owners in the west zone of Hyderabad should be pleased to know that real estate prices have risen by 1.9 percent as per Magicbricks research. West Hyderabad has been favoured by potential consumers in the past and this quarter (Apr-Jun 2016) was no different. The localities which stand out in the west zone are Manikonda, Gachibowli and Kondapur.
One of the main reasons behind consumer preference is the establishment of office clusters in this region. The advent of IT/ITeS offices have led to a string of developments in the retail, hospitality and residential sectors. Hence, it will be right to mention that Hyderabad has grown primarily in the western direction. Magicbricks estimation states that 50 percent of consumer preference is concentrated on West Hyderabad.
Price change in the western precinct
West Hyderabad accounts for most of the realty transactions in the market. And why not? With an impressive background of developments, it is not surprising that the quantum of movement is greater than any other zones of Hyderabad.
Every buyer or an investor has their budgets for a property investment. A comprehensive list detailing the price change in different budget segments has been mentioned below:
Overall, the entire region witnessed a price rise. Properties in the budget segment of Rs 3,000-4,000 per sq ft were spread across localities such as Nallagandla, Manikonda and others. These two specific localities saw a 4 and 3.9 percent increase in property prices, respectively. Similarly, Gachibowli and Kondapur had a spread of properties in the price bracket of Rs 4,000-5,000 per sq ft and saw a price rise of 2.5 and 3.3 percent, respectively.
Top localities by consumer preference
Localities in the western zone which seem to have garnered the most attention from consumers for specific budget segments have been mentioned below: Consumer investment preference says a lot about a locality. Everyone researches about a project, a property and a locality before putting in their money. The preference list can be seen as an indicator towards these localities. Obviously, one needs to conduct their due diligence as the requirements of a family and from a property will be different.
Price variations in under construction and ready to-move-in units
After having selected a locality, one might be in a dilemma about the construction status of a property. In both categories (under-construction and ready-to-move-in), there mostly seems to be a price increment.
The difference between the two categories does not seem wide. Therefore, whether an under-construction or a ready-to-move-in unit, an investment in either type of property is lucrative. With the growth in property prices, West Hyderabad does seem like a good option for investment now.
A competent property manager can add significant value to your investment, which is why many seasoned real estate investors will tell you that a good management company is worth their weight in gold. Here are a few ways that a good property manager earns their keep:
Higher Quality Tenants
Think of tenant screening as the moat and draw bridge around your castle. It is certainly possible to get a bad tenant out of your home once they are in, but it’s a real hassle and you are so much better off never accepting them in the first place. A thorough screening process results in reliable tenants that:
Pay on time
Put less wear and tear on the unit
Generally cause less problems
An experienced property management company has seen thousands of applications and knows how to quickly dig for the real facts about candidates and analyze that information for warning signs. By allowing a management company to handle the screening, you will also be shielding yourself from rental scams directed at owners, and discrimination lawsuits resulting from an inconsistent screening process. This kind of experience takes time, and insomuch as it means avoiding bad tenants, scams and lawsuits it is arguably one of the most significant benefits a property management company will provide.
Fewer costly and time consuming legal problems
Veteran landlords know it only takes one troublesome tenant to cause significant legal and financial headaches. A good property manager is armed with the knowledge of the latest landlord-tenant laws and will ensure that you are not leaving yourself vulnerable to a potential law suit. Each state and municipality have their own laws, these plus federal law cover a number of areas including but not limited to:
Safety and property conditions of the property
Handling security deposits
Avoiding a single law suit can more than pay for the property management fees, and spare you time and anguish.
Shorter vacancy cycles
A property manager will help you perform three critical tasks that affect how long it takes to fill your vacancies:
Improve and prepare the property for rent – A property manager will suggest and oversee cosmetic improvements that maximize revenue.
Determine the best rent rate – Too high and you are stuck waiting, to low and you’re losing money every month the tenant is in the unit. Determining the optimal price requires knowledge of the local market, data on recently sold comparables, and access to rental rate tools.
Effectively market your property – An experienced property management company has written hundreds of ads and understands what to say and where advertise in order to get a larger pool of candidates in a shorter period of time. Additionally because of their volume they can usually negotiate cheaper advertising rates both online and offline. Lastly, they are familiar with sales and know how to close when they field calls from prospects and take them on showings.
Better tenant retention
While its easy to see the effects of lost rent, there are other equally serious problems with a high tenant turnover rate. The turnover process involves a thorough cleaning, changing the locks, painting the walls and possibly new carpet or small repairs, not to mention all the effort associated with marketing, showing , screening and settling in a new tenant. This is a time-consuming and expensive process that can often be averted by keeping tenants happy and well cared for.
A good property management company will have a time-tested tenant retention policy that ensures happy tenants with lengthy stays in your properties. These kinds of programs require a consistent, systematic approach, which is where a good property management company will shine.
Tighter rent collection process
The way you handle rent collection and late payments can be the difference between success and failure as a landlord. Collecting rent on time every month is the only way to maintain consistent cash-flow, and your tenants need to understand this is not negotiable. By hiring a property manager, you put a buffer between yourself and the tenant, and allow them to be the bad guy who has to listen to excuses, chase down rent, and when necessary, evict the person living in your property.
If you let them, your tenants will walk all over you. They have to be trained to follow every part of the lease or deal with the consequences. Property managers have an advantage because tenants realize that they, unlike the owner, are only doing their job and are obligated to enforce the lease terms. Many property managers will tell you that it is considerably easier to manage other people’s units rather than their own for this reason.
Regarding evictions, there are strict laws concerning the eviction process, and doing it wrong, or trying to evict a “professional tenant” can be a MAJOR fiasco. A good property management firm knows the law and has a good process for obtaining the best possible outcome given the circumstances. Never having to handle another eviction can be a compelling reason to consider hiring a property management company.
Assistance with taxes
A property management company can help you understand which deductions you can claim, as well as organize the necessary forms and documentation to make those claims. Additionally, the property management fees themselves are also tax deductible.
Lower maintenance and repair costs
Good maintenance and repairs keep tenants happy and preserve the value of your investment which make them a very important part of land-lording. By hiring a management firm you gain access to both their in-house maintenance staff, as well as their network of licensed, bonded and insured contractors who have already been vetted for good pricing and quality work. This can translate into significant savings compared to going through the yellow pages and hiring a handyman yourself. Not only is the firm able to get volume discounts on the work, they also know the contractors and understand maintenance issues such that they are capable of intelligently supervising the work.
Increase the value of the investment
Preventative maintenance is achieved through putting systems in place that catch and deal with maintenance and repair issues early on, before they grow into larger more costly problems. This requires a written maintenance check program, detailed maintenance documentation and regular maintenance visits. The management firm can also offer you suggestions and feedback on upgrades and modifications, both how they will affect the rent you can charge, as well as their impact on maintenance and insurance.
Personal benefits for owners
Less stress – Avoid having to deal with middle of the night emergencies, chasing down rent, evicting people from your property, tenants who wreck your property, rental scams, lousy vendors, piles of paperwork.
More freedom – Live and invest wherever you want with the constraint of needing to be near your properties. Additionally you can live and travel without the requirement of always being available in the event that your tenants have a need you have to tend to. Once you have found a good management company, it doesn’t matter if you live in the same state. Some landlords live in other countries and simply collect their check every month without ever seeing the property.
Free up more of your time – Time is money, and for many investors, their time can be more profitably spent in areas other than servicing their properties. When you focus on asset management you’re working ON your business, when you manage your own properties you work IN it. Additionally you have more time to spend with family or friends doing things you enjoy.
Hyderabad is known for its affordable rents, and people are able to defer or delay their final property purchase due to the abundant availability of rental properties. A report on rental preferences today.
In Hyderabad, the trend of living in rental accommodation usually involves multi-storey apartments followed by other kinds of property types. A couple of years ago, the city came under the siege of corporates. Since then, the rental market has had a good run.
Magicbricks conducted a Rental Housing survey, which unveiled some interesting facts. The survey indicated tenant preference in terms of housing types, their preferred budget, amenities that they wish for, amongst others.
The survey tells us that the most popular rental budget segment is the Rs 7,000-8,000 per month, followed by the Rs 12,000 -13,000 per month and the Rs 10,000-11,000 per month rental segments.
From the supply side, the top budget segment per month is the Rs 10,000-11,000, followed by Rs 12,000-13,000; and Rs 15,000-16,000 segments.
This shows that though low rental budget is most in demand, it is not being catered to on the ground. However, the budget segments of Rs 12,000-13,000 per month and Rs 10,000-11,000 per month are being met fair and square.
Localities to consider as rental options
The top micro-markets housing the maximum number of rental units include Banjara Hills, Madhapur, East Maredpally, Begumpet and Gachibowli.
Primary requirements of tenants
Demand for proper water storage facility has received the maximum number of votes for facilities most saught after. Other close requirements would be separate meter for electricity, security of the locality, a developed social infrastructure, a semi-furnished unit, etc. Whereas, the option of proximity to commercial hubs received the least number of votes from the respondents. Here’s a quick summary of their needs as per their preference order.
Respondents from all over India shared that location was key to their final decision. Morevoer, renting in Hyderabad and the nuances of the tenants does indicate their inclination towards new age projects offering multi storey apartments.
Though the preference is clearly apartments, the rental budget is usually in the mid range. This comes as a surprise as the needs expressed by the tenants is pretty modern.
Amenities come at a price, be it the convineance of a gated community or facilities such as security, soft furnishings such as geyser, power back-up, reserved parking, nearness to malls entertainment zones, etc.
Having said this, it is important to point out that water storage seems to be the looming factor in the minds of tenants.
This has been clearly defined with the most number of votes.
Suburban location is the choice of tenants which is understandable. Given the fact that new projects are rampant in the suburbs with office hubs emerging in those areas and comparatively inexpensive properties their selection is logical.
Source: Namrata Ekka, Times Property, The Times of India, Hyderabad.
Everybody around you is either planning to invest in a property or has already done so. You might have been holding back waiting for the right property at the right price developed by the right person. While there are many parameters by which you can judge a right property, how do you go about selecting the builder?
Here is something you should know –
The Mantra: Research Well
Most buyers look into the budget and the location.Ideally, the developer is of prime importance too. A good builder will see to it that your house is delivered to you just as you like it clean title, with all the approvals and value for your money.
Take for instance, the case of delayed projects.These have in the past crippled home buyers. Project delays can happen if approvals are not in place or the developer is facing a financial crunch.
There are a number of reasons, “Some developers try to sell property even before they have obtained the license to do so, some other mismanage their cash inflow, others go overboard with their expansion plans,“ says Arun Alok, an individual consultant at Top Properties.
Always research on the track record of the developer. Check whether the builder has delivered projects on time, of good quality and takes care of his brand even post sales.
Arun gives a classic example of a developer who had a track record of late project deliveries. “This one time reputed developer grew so ambitious that with the money he got from buyers, he used it to buy plots in his next construction site.“
In a slow market, just like how it is today, marketing strategies flood the market. Even real estate sector is open to it. While marketing does bring more information on your plate, do not give in to it blindly.
You may have heard of discounts, deals, assured returns or buy back guarantees. It is an indicator of stress in the market. To boost sales, developers may be ready to give waivers on the total cost of the house, gold coins, free appliances and fittings or even a car! Sounds wonderful, doesn’t it?
Though these marketing tactics are ethical, as a buyer, you must be careful about where you are putting your money. If the house suits you, go for it, with or without a deal.
Check if the project has all legal approvals and NOC’s from related regulatory authorities.Find if the project land is registered with the builder and if he has all necessary sanctions generated with clear information on approved FAR.
You also need to know if the sewage, water connection and electricity sanctions have been obtained. Check whether the project is rated by any credit rating agency. Generally, agencies give ratings after detailed survey and due diligence of the project.
Do not restrict yourself
Magicbricks reached out to first home buyers across the country through a recent survey. The findings were interesting.About 39 per cent first home buyers indicated that they would consider family advice as sacrosanct.
A close second was reliability on real estate portals with 33 per cent relying on the online medium for research and options. Consulting brokers and newspaper advertisements were other mediums.
When it comes to property purchase, everybody around has advices for you. They may be talking from previous good or bad experiences. It is good to lend a ear. At the same time, do not restrict yourself from exploring.
Shortlist the kind of house you are looking for. Zero in on the developer firms that offer you with what you have in mind. Different developers have different levels of expertise and ideas about how to go about the plan and construction.
A new developer in the market may not really be a bad choice. Do explore your options and then make the final choice. Be ready with all your homework so that when the best deals come, you are ready to plunge.
How good is the firm after sales?
The developer-consumer relationship does not end with the close of sales. Brand management starts after the sale is over.Many realty giants have established their base only because they were able to woo buyers with a commitment that they would address any problem that may crop up.
Similarly, many big developers have lost their image because they failed to stick to timelines, original maps etc.
If a firm extends help in terms of maintaining a website that documents construction updates and encourages after sale meets regarding discrepancies in clauses, the firm has already won a lot of hearts. Refrain from investing in properties owned by unstructured and flyby-night developers.
For most buyers, a property purchase is a very big investment. Depend on the best.
Sneha Sharon Mammen, Times Property, Magicbricks Bureau/ Hyderabad