Top 5 Tips for Real Estate Investment in Year 2014
With a large number of developers bringing out a variety of projects, people today have innumerable options to invest in Real Estate and may be the overall process has become too confusing. Which developer to trust and where to invest? These are some of the questions that cross one's mind. Let's take a dig at this confusion! Whenever you are planning to invest, below are top 5 Tips that could help immensely in making right decision.
Tip1: - Location
Most of the realty experts these days suggest that more than the marketing bells and whistles. The Amenities and specifications gimmicks, one should give top priority to the location of the property when looking for a top end luxury Real Estate Investment. As Mr. A S Sivaramakrishnan, head of the residential services, CBRE suggests, "It often happens that many developers build super-premium apartments at locations on city outskirts, with development horizon of 5 to 7 years. Even though they provide very high-end facilities, the project fails to command the pricing demanded because the location is not much appealing."
Tip2: - Apartment Area
"Area" is another criterion for defining luxury. Any luxury apartment should ideally be more than 3,500 sq. ft. In the National Capital Region (NCR), depending on the location, the FAR (floor area ratio) norms allow anywhere between 400 and 700 apartments to get constructed over 10 acres of the land parcel. For a project to get classified as self-indulging, the number of dwelling units should be much lower with low density and lots of open space as an advantage.
Tip3: - Exclusive Amenities that matters
Once you get a perfect area in an optimum location, carry on looking for the facilities in projects. In the present scenario, "the sky is the limit" for this sole parameter. Top-notch security features, imported flooring materials, high-end kitchen and bathroom fittings, there is no end to a man's desire for owning a luxurious apartment and live a comfortable life. Sivaramakrishnan further suggests that in an ideal scenario, the developer should create a basic framework with a customs option that allow the customer to choose the specifications.
Tip4: - Experienced developer with proven Track Record
The developer should ideally be someone who has delivered complete projects as a track record, whom the investor would find trustworthy enough and who can assure that one's hard-earned money won't be taken for a ride. "Developers who lack experience of developing luxury properties may find it very difficult to manage. To develop and deliver the kind of luxury with top end finished product are as expected by today's top savvy buyers," believes Shweta Jain, Executive Director, Residential Services, Cushman and Wakefield. Once the developer get identified, and its basic due diligence is satisfactory including, clear litigation free land title and its financial position is sound and deep enough to deliver the project on time.
Tip 5: - Things to take in Consideration
In India, the super high-rise apartment projects are above 70 to 80 floors ex Raheja Revanta and Supertech Supernova usually gets classified as Super Luxury demanding 15-30% premium. Moreover, it should not be trusted on the marketing brochure of the projects only as developing such projects require deep project development expertise, clearance from building, environment regulators. Shweta Jain further suggests that one should clearly identify what value such an extra premium would bring to in their lifestyle and investment. Typically, marketing plan for such premium projects only extend up to attracting the deep-pocketed customers. By showing shallow expertise and a loose tie up with the 3rd world's luxury brands or in some cases with developers of the world's well-known luxurious projects ex in middle East especially Dubai. Often, these tie-ups are purely superficial.
Tip1: - Location
Most of the realty experts these days suggest that more than the marketing bells and whistles. The Amenities and specifications gimmicks, one should give top priority to the location of the property when looking for a top end luxury Real Estate Investment. As Mr. A S Sivaramakrishnan, head of the residential services, CBRE suggests, "It often happens that many developers build super-premium apartments at locations on city outskirts, with development horizon of 5 to 7 years. Even though they provide very high-end facilities, the project fails to command the pricing demanded because the location is not much appealing."
Tip2: - Apartment Area
"Area" is another criterion for defining luxury. Any luxury apartment should ideally be more than 3,500 sq. ft. In the National Capital Region (NCR), depending on the location, the FAR (floor area ratio) norms allow anywhere between 400 and 700 apartments to get constructed over 10 acres of the land parcel. For a project to get classified as self-indulging, the number of dwelling units should be much lower with low density and lots of open space as an advantage.
Tip3: - Exclusive Amenities that matters
Once you get a perfect area in an optimum location, carry on looking for the facilities in projects. In the present scenario, "the sky is the limit" for this sole parameter. Top-notch security features, imported flooring materials, high-end kitchen and bathroom fittings, there is no end to a man's desire for owning a luxurious apartment and live a comfortable life. Sivaramakrishnan further suggests that in an ideal scenario, the developer should create a basic framework with a customs option that allow the customer to choose the specifications.
Tip4: - Experienced developer with proven Track Record
The developer should ideally be someone who has delivered complete projects as a track record, whom the investor would find trustworthy enough and who can assure that one's hard-earned money won't be taken for a ride. "Developers who lack experience of developing luxury properties may find it very difficult to manage. To develop and deliver the kind of luxury with top end finished product are as expected by today's top savvy buyers," believes Shweta Jain, Executive Director, Residential Services, Cushman and Wakefield. Once the developer get identified, and its basic due diligence is satisfactory including, clear litigation free land title and its financial position is sound and deep enough to deliver the project on time.
Tip 5: - Things to take in Consideration
In India, the super high-rise apartment projects are above 70 to 80 floors ex Raheja Revanta and Supertech Supernova usually gets classified as Super Luxury demanding 15-30% premium. Moreover, it should not be trusted on the marketing brochure of the projects only as developing such projects require deep project development expertise, clearance from building, environment regulators. Shweta Jain further suggests that one should clearly identify what value such an extra premium would bring to in their lifestyle and investment. Typically, marketing plan for such premium projects only extend up to attracting the deep-pocketed customers. By showing shallow expertise and a loose tie up with the 3rd world's luxury brands or in some cases with developers of the world's well-known luxurious projects ex in middle East especially Dubai. Often, these tie-ups are purely superficial.
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