Growth of Indian Real Estate Sector

The real estate sector is a critical sector of our economy and it also has a huge multiplier effect on the economy. This sector has a major role in the economic growth of the country. After agriculture, it is the second largest employment generating sector and it is growing at the rate of about 20% per annum. It contributes to about 5-6 % of India’s GDP. Generating a high level of direct employment, real estate also generates a demand in over 250 ancillary industries such as building materials, paint, steel, cement, consumer durables etc. Since 2005, the Indian real estate industry has been growing at a high rate. There was a boon in the investment and developmental activities after the government’s policy to allow Foreign Direct Investment (FDI) in this sector. Many new domestic realty players and also many foreign real estate investment companies entered into this sector due to the high returns on investments. After that the real estate sector has been through many highs and lows.

Due to a growth in demand, substantial development and increased foreign investments, the industry grew during 2007 and early 2008. There was a fall in the industry in mid 2008 due to the global economic slowdown. This downturn was also due to the significant drop in the FDI inflow into real estate. The housing and real estate sector attracted FDIs’ of 8.9%, 10.3% and 11% out of the total FDI in India, in the years 2007-08, 2008-09 and 2009-10 respectively. There was however a low 6% FDI in this sector in the year 2010-11. In the year 2010, this sector sprang back after the down period and the global downturn’s recessionary pressures.

By the focus on ‘affordable housing’, the sector came back from the financial crunch it was in. It is of little doubt that the sector will attract FDI in its various segments. But it can progress only by the joint efforts of the industry and the government. Increased transparency, clear land titles, improved delivery and project execution should be looked into by the industry and the government should provide fiscal incentives to developers to build low cost and affordable housing for the people. In order to increase the flow of foreign capital into the sector, the government should also review the existing FDI guidelines for investment and development in the sector. For the industry to deliver low cost, affordable, and sustainable and environment friendly housing and building structures, the government should provide incentives to the public and private sectors. By these incentives, these sectors can take up R & D activities for new building materials and technologies.

In townships, housing, built-up infrastructure and construction development projects, the Government of India vide Press Note No. 2 of 2005, permitted FDI up to 100%. This was done to bring in new technologies in the housing sector and to remove the huge shortage of housing in the country. Tough large amounts of foreign funds was attracted by the original guidelines vide this press note, the FDI inflow was affected adversely by the subsequent amendments to the FDI policy relating to real estate. This was due to the apprehensions and confusion in the minds of the global investors that resulted out of these amendments. Increase of key rates by the RBI many times during the last one year, increased monitoring of the sector by regulatory agencies, tightening of rules for lending to the real estate sector and lack of consistency in rules relating to development of SEZs have hindered the growth of this sector. Introduction of reforms and streamlining of government policies are required for its growth.
 

Piyush Group is one of the leading real estate company in india. Piyush Group is involved in development of Integrated Township, Group Housing Projects, Commercial Mall

Are You Ready to Buy Your First Home?

Buying your own home with hard earned income, is the first dream that every guy has. Now day’s guys have this thing in mind that before getting married a he/she should have his own flat or home from where he can start and his life very happily. Though many people have belief that it’s better to live on rent for some period of time and stay away from the headaches of renovations and making amendments and taking the responsibility of a complete home themselves. But in the final analysis, every man needs a life where he has got the stability and he is free from changing his home with the change in the moods of his landlords. When you get stable, you have school going children, and security becomes an important concern, then people tend to search for their own home instead of staying under someone else roof and shelter. At that point of time, ownership becomes very desirable.

In this article we are discussing some of the considerations that you have to keep in mind before buying your first home. A fresher is already expected to make mistakes but smart freshers learn from the experiences and mistakes of others. First of all you have to see how much bank account you have as you have to make down payment for the purpose. That money either you would have saved or you can approach your relatives and friends to assist you in monetary terms. At least 10 percent of down payment is necessary and bakers prefer that you pay at least 20 percent or more. Paying more than the 10 percent is beneficial for you only as you can avoid the necessity for private mortgage insurance. Lenders have also become very choosy in lending money. They also consider many factors such as the timeliness of payment, credit card limit and many other factors.

You should consider the costs. You should be able to help yourself in bearing all the expenses of your household activities such as internet fee, electricity, water and maintenance charges of your home. Maintain your kitchen garden would be your responsibility. Giving contributions to the committee of the society every month will be mandatory from your end. So consider these all the expenses and these are not fixed prices as they tend to increase year after years. It has been studied and analyzed that a home owner should be saving and using 5 percent of his gross salary for his maintenance of home such as wind, flood, leakage damage. Borrowing at that time will not be smart option Thus, planning and saving is the only solution.

Piyush Group is one of the leading real estate company in india. Piyush Group is involved in development of Integrated Township, Group Housing Projects, Commercial Mall

10 Things to Check Before You Buy a Builder House

Some people prefer to buy build readymade houses. They have the feeling that it saves fatigue and time. Secondly, it also give you access of your dream home in few time. They must think that your home should be in good shape and in right order. But it has been observed as well that new homes sometimes have many discrepancies as were told to you before buying. It may happen that it is totally opposite of what you expected. Reason behind that is these homes have not been tested for long time. They have not been used for so long which leads them to have problems .It also depends on the builder also; what type of material he has used in constructing that home. If cheap quality has been used, then the outcome would be bad home after several uses. So the best thing to do is to hire an inspector before you buy a house, to make inspection of several areas. Hiring inspector will also need some amount of investment of money .But after making this investment you find good house to live in, that money given to Inspector for inspection is worth it. Secondly, you also save a handsome amount that you would have invested in buying that home for total losses.

In this article we will discuss certain points to remember before you buy a builder house.

Look at the structure of the house. You can also check it out according to vastushastra. You should also check that there were no bad incidents happened in that home in the past. You should also look at the structure of the house. Have a close look at the walls, doors of the house. See how rooms are arranged, how kitchen and drawing rooms arranged.

Also look there is no water leakage. Check out that there are no leakages in drainage pipes of wash basins, washrooms, and kitchen. You should also check that the roof is in a good condition. Check that the roof is new and in good shape.

Look at the finishing details in the house such as tiles used, paint and hardware used in the house. Check the quality of bath tubs, sinks, toilets, wash basins. See that they are of good quality and matching to your interior. Also check out the water pressure that it is good.

Electricity is also the major point on which you have to emphasize. Check that wires are not too old or prone to current. Check out that furnace or heater is located at right place and functioning properly.

Piyush Group is one of the leading real estate company in india. Piyush Group is involved in development of Integrated Township, Group Housing Projects, Commercial Mall

Investing in Real Estate Strategies for Beginners

There are many benefits of real estate investing. There are certain tax saving benefits being provided by real estate such as appreciation on investment, depreciation, capital gains tax, and many others. But this thing also should be kept in mind that there are certain points if not considered before investing in real estate ; can be dangerous for a person to invest.