Real Estate bring India ,UAE Closer

The real estate developers from India and UAE are attracted by each other with the boom in Real Estate India. Both of them are seeking to grow their business in each other country.

Nahar Group and Sheth Estate Ltd from India are investing in the Dubai real estate where as Sternon Group from Dubai is interested in real estate india. Sheth Estate has invested 1.5 billion dirhams into its first two ventures - Iris Blue and Iris Bay which is a residential towers located with in Dubai Marina.

Iris' General Manager Vimal Agrawal said, “Construction is scheduled for completion in December, and today the 23rd floor is completed, which means we are ahead of time. Now 90 per cent (125 units) of the tower has already been sold to investors and end-users.”

The Mumbai’s leading real estate develop, Nahar Group has opened its office in Dubai to attaract the NRIs based in Hong Kong, United Kingdom and United in Nahar's Amrit Shakti project near Powai in Mumbai.

Dubai-based real estate firm Sternon , who has developed properties in the US and UK ,has invested Rs 1,200 crore in mumbai’s real estate market in mega-project on the Mumbai-Pune Express Highway near the proposed New Mumbai International Airport in Panvel which has customers in 28 countries. Sternon has tied up with Garnet Construction Ltd for the overseas marketing of the project.

China Real Estate Expo-2007

After successfully organised the largest B2B real estate exhibition , Cityscape Asia which was held in Singapore last week ,the cityscape China is going to be held from 24-26 May,2007 at the Shanghai International Exhibition Centre, China.There wil be comparable investor and exhibitor profiles, 6,000 sq m of exhibition space and an international conference featuring leading international realty experts in the Cityscape China .

Neil Hickman, Exhibition Director, Cityscape Asia & China, said,"China is currently experiencing over twenty per cent real estate growth per annum. There are 2,520 projects either at the planning stage or in progress including, waterfront developments, industrial free zones, techno cities and tourism projects on a monumental scale unique anywhere in the world".

Last week Cityscape Asia held in sinapore fullly supported by officers of Singapore's Urban Redevelopment Authority.There were more than 4,500 participants from across the region and beyond inthe real estate expo who were representing prominent investors, developers, industry experts in the fields of urban and environmental planning as well as architecture and design, the event underscored the strength of the regional property market.

Factors Keeping the Property Market on the Boil

There are ten points which keep the property market on the boil.

1. Investment in infrastructure. Governments don't have enough funds to develop, modernise and maintain their roads, bridges, dams, sewers and other infrastructure. Global investors are beginning to invest in infrastructure as the returns on commercial properties fall.

"Infrastructure will quickly rival other property markets," says Reiss, " with trillions of dollars spent to bring infrastructure up to standard or to develop new infrastructure."

2. The US housing market is in decline. Loan defaults are rising this year and some home prices are drastically reduced. This could affect sentiment in other housing markets.

One of the most potentially damaging factors is stretched home buyers, says Reiss. Some banks in the UK, for instance, are giving loans of five times buyers' income.

3. Private equity property deals totalled US$160bn in 2006, which made real estate the second most active sector. "Private equity will continue to dominate the real-estate headlines this year," adds Reiss. Even before private equity giant Blackstone's $39bn acquisition of US-listed real estate investment trust Equity Office Properties earlier this year, the trend was overwhelmingly going from public to private and will spread to countries like SA.

4. The globalisation of real estate investment trusts (Reits) will create more Reits outside the US than in it for the first time in 2008, making global property investment easy and widespread.

More than 29 jurisdictions, including SA, are adopting the legislation necessary to start the development of Reits.

5. Green buildings, once dismissed by developers as too expensive, will become a must as tenants, lenders, residents and even investors push for sustainability. "Expect green principles to become synonymous in the real-estate industry with cost-efficient operating principles," says Reiss.

6. Hot property markets in Brazil, Russia, India and China will become established in the next few years, with strong flows of direct foreign capital. SA, Mexico, Romania and Turkey are moving up the list.

7. Cross-border capital flow will take off as investors step up the search for higher yields and new opportunities in previously untouched markets.

" Given the growing power of petrodollar economies, and the increasing sophistication of global data, we expect capital flows to become more complex over the next 10 years," says Reiss.

8. The power of demographics. India's booming population and rapid urbanisation are spurring housing construction. The wealth of call centre and technology services employees is creating a huge demand for retail.

The baby boom generation retiring at the rate of 10m/year in the US has also stimulated a boom in retirement communities for active retirees, and second-home developments. Similar trends are evident in Europe and Japan.

Populations of countries in Asia, Africa and the Middle East are getting younger and developers are focusing on creating housing and retail centres there.

9. The so-called café workforce. "Have you noticed the number of people using laptops in coffee shops?" asks Reiss. "They point to one of the biggest potential trends this year: the reduced need for office space."

10. Designing out obsolescence. Expect more developers to embrace building techniques that allow flexibility in the project to cater for different future needs of their users should the market change. In 50 years this trend may minimise the need for redevelopment on the scale we see today.

Indian Realty Market Estimated at $60 bn by 2010

On Saturday, the leading organisers of a major realty fair in Delhi said that the real estate India market will grow five-fold to $60 billion by 2010 and $90 billion by 2015.

Satish Khanna of Al Fajer Information and Services, the organisers of Asian Real Estate Show 2007 said,"The Indian real estate market has emerged as one of the most attractive options to invest in international markets."

He added,"In mature markets of advanced countries, developers can at best hope for 5-7 percent return. But in India, real estate investment yields are in the range of 20 percent."

Some of renowned developers from the United Arab Emirates, including Al Fajer Properties, the Damac group and Star Giga and Best Homes are participating in the fair that is also focusing on issues like sustainable urban development, finance, marketing, architecture and environment branding through seminars and workshops.

From the United Arab Emirates, a few renowned developers including Al Fajer Properties, the Damac group and Star Giga and Best Homes participated in the fair. The main issues in the fair were sustainable urban development, finance, marketing, architecture and environment branding through seminars and workshops.

The exhibitors came from various countries of the worlds like US, Spain, Singapore and Malaysia including UAE and India.The opportunities in hotels, malls, healthcare, housing, IT parks and integrated townships all over the country were the main focus for these countries.

Al Fajer Information and Services, the leading organizer of the realty show said, "the rapidly growing real estate market in India is moving towards maturity with increased participation from both local and global players to raise investor interest and a market-friendly approach."

Khanna added,"The government's decisions to allow 100 percent foreign investment and entry of venture funds will to add to the growth momentum created by affordable financing options and rising disposable incomes. Further, there are indications that obstacles such as the absence of investment instruments in real estate are likely to be removed."

He also added, "Since India has also allowed real estate mutual funds to be floated, it will eventually pave the way for the setting-up of real estate investment trust or similar structures to fuel growth further."

The main purpose of the fair was to help global developers understand the Indian market before taking final decisions since the size and exposure of investments would be large.

Tips to Make Sure the Right Price of Real Estate

There are five ways to make sure that you avoid this mistake.

1: Know the property values

You have to research and understand the neighborhood property values. This step is critical for your success. You need to actually visit any property you're considering and compare it to other properties in the neighborhood. Online research can't give you a feel for the neighborhood or the property.

Keep a detailed record of selling prices in the neighborhood for run-down and improved homes. You can gather this information from local real estate brokers, the county clerk's office, the tax assessor's office and from real estate appraisers. Collecting and analyzing this kind of information is often called a comparative market analysis, or CMA.

2: Estimate your project costs

Once you have information on actual property values, you can start to estimate how much you can spend and still make your desired profit. There are several types of costs you should consider. Acquisition costs include the purchase price, taxes and origination fees. Get estimates from several lenders and compare. Don't get surprised by extra closing costs.

Repair costs include everything you'll need to improve the condition of the property. This is where your visit to the property really pays off. You'll have a better idea what repairs are needed. You should also get a few contractors to provide estimates for some of the repairs.

Other possible costs to consider include inspections, a title search, a survey and a certificate of occupancy. You may also need title insurance and other types of insurance, depending on whether you plan to live in the property or not. Finally, there could be utility costs and other unexpected repair costs.

3: Check the Feasibility Of the Project

Once you've determined property values in the neighborhood, you're ready to evaluate the feasibility of your project. Start with the current value of the unimproved property. Add your renovation budget, other project costs and estimated interest to get a total project costs. Then add your minimum profit to that. If the total you calculate is more than improved homes sell for in that neighborhood, the project isn't feasible. Walk away.

4: Calculate the Maximum Purchase Price

Figuring out the maximum amount you should pay for the property works the other way. Start with the final selling price you think you can get in that neighborhood. Deduct your profit margin, as well as selling costs, renovation costs, and the other project costs listed above. The figure you end up with is the maximum amount you should be prepared to pay.

5: Negotiate Hard But Fair

Once it's time to purchase, you have all the knowledge you need to negotiate well. Your knowledge puts you in a position of strength. As you meet with the seller, strike a balance between sensitivity and professionalism. Negotiation is an art and it may take some time for you to be comfortable with it. But the steps above have given you the financial boundaries. It should be clear to you when it's time to strike a deal and when it's time to walk away.

The key to your real estate investment profit is in the purchase price. Everything about your project hinges on this critical number. Research into your target neighborhood and realistic estimation of costs will give you the knowledge you need to negotiate a profitable purchase price.

Important Tips to Select a Realtor

You know that a good Realtor can make your home buyer or selling experience gratifying and that a bad Realtor can make your experience miserable. Realtors tend to go one way or another when it comes to being your advocate in the world of real estate. Unfortunately along with all the superior agents are inferior ones. It is up to you to choose which Realtor you will work with and you know to proceed with caution.

Below are 8 tips for choosing a Realtor. Of course there are ways not listed here that you use to find a Realtor who will do his job right. Hopefully going through these tips will help you to avoid the agents that you hear so many complaints about.

1. Go with a reputable agency - Overall, Realtors who work for agencies tend to be better prepared for situation that they will face because their agencies provide training and additional resources to them. An agency is likely to hear about any dissatisfied customers and they will have the resources and the customer service capabilities to fix problems or quickly re-assign Realtors.

2. Realtors should be licensed - Realtors need to have professional and educational training before they act in a real estate agent capacity. In addition to knowing how to find or sell properties for clients, a big part of real estate sales training involved understanding the financing process, legal forms and other binding documentation. The Realtor needs to know everything necessary to carry through a sale or purchase within the rules of the law.

3. Don't be pressured into signing an agreement - When you choose a Realtor you enter into an agreement with that individual to pay for their services with a certain percentage of the home's purchase price. Many Realtors and real estate agencies will allow you to enter into temporary or short term agreements with agents. This way you have a type of trial period with your Realtor to be able to get an idea of how he works. If you are not satisfied with his performance you are free to choose another Realtor. If you are pressured into signing an agreement right away, you may want to proceed with caution. A good agent knows that after a trial period he will be signed on for the long term, and usually will not be opposed to a short term trial agreement.

4. Make sure personalities don't clash - Get to know your Realtor's personality. Be observant of how he acts in stressful situations and make sure that you will be able to get along with this person for at least a couple of months. In an aggressive selling or buying environment you can end up spending a lot of time with your agent, make sure that you can at least tolerate having him around.

5. Dependability and punctuality - Realtors have many appointments to meet clients, open houses, opportunities to present offers, etc. This is why it is so important for your Realtor to keep his appointments and arrive where he says he will be, on time. Your Realtor is very literally representing you in a business deal and you want to be able to depend on him.

6. Willingness and dedication - Many times Realtors have to work long hours and pitch in to help to get the job done. Make sure that your Realtor is dedicated to serving your best interest and is willing to work hard to make you happy.

7. Professionalism - This trait is pretty self explanatory. Your Realtor is handling hundreds of thousands of dollars; he should do so with professionalism.

8. Diligence - Real estate sales is not always an easy job, sometimes there are homes that simply do not sell right away, or buyers who aren't satisfied with any available properties. A passive Realtor is the last thing that you need.

Realtor beats Sri Lanka's prohibitive land taxes through leases

The real estate india firm dealt in the Sri Lankan property market is going to help foreign buyers, a 100 percent transaction tax by arrainging 99-year leases.

Lakshmi Narayanan CEO , Real Estae Bank of India(Lanka) Private Limited(REBI Lanka) said," They were raising funds abroad because of the high cost of finance here. the firm has set a target of doing 12,000 property transactions by March 2008 and wants to train 2,000 people by the year’s end to infuse more professionalism into the island’s property business."

He added "The high transaction tax discourages potential business in Sri Lanka for foreign investors in the property market.The only problem is that the government has laid a tax of 100 percent for foreign investors over property.”

The company is looking to implement an easy route its clients by leasing property for 99 years which will bring down the tax to seven percent.

Already foreign companies can buy companies, including listed firms that owned land, without paying the transaction tax.

A Malaysian construction firm bought dormant listed company, whose only substantial asset was a prime property in Colombo's up market Kollupitiya area, last week .

Apartments on high rises are also exempt from the tax.

The firm is planning to act as a one-stop-shop for both local and international clients handling brokerage, financial services, databank facilities accessible through electronic media, web, magazines and toll free call centres.

He also added,"They also plan to train people because the local market lacks trained professionals. Most people who do real estate in Sri Lanka are "small timers" and the business is not organized on professional lines .Sri Lankan real estate business at present is a time consuming business and there are no trained processionals."

He added“Looking at the potential deals with the state we plan to raise funds internationally since the interest rates in Sri Lanka are very high.”

The minister for construction and engineering services Rajitha Senaratne said," The government welcomes foreign investors so more construction projects can be initiated. I intend to build 100,000 houses before the 2008 elections and I believe that the private and the state sectors can work in collaboration"

IIR Middle East to launch Cityscape India

The world’s largest B2B real estate brand IIR Middle East will going to launch Cityscape India at the Bombay Exhibition Centre Mumbai from 19-21 November 2007. A record breaking FDI climb to $11.2 billion in 2006 which was a 155% increase year on year made them to think upon this.Real estate investment regulations for Non Resident Indians and foreign investors have provided the force to drive the value of the Indian real estate market towards $50 million by 2010.

Rohan Marwaha, Group Director, Cityscape, said, “There has never been a better time for overseas investors and developers to engage with the Indian real estate market and an ideal opportunity for us to launch Cityscape India. Aiming to strengthen trade relations between the UAE and India, largest real estate india developer DLF confirmed an agreement with Dubai developer Nakheel worth $20 billion to build two townships in India”.

Cityscape is going to be a platform to further enhance residential, retail and commercial property growth to an international audience, highlighting revolutionary development and unparalleled investment opportunities. Cityscape India has already drawn support from leading real estate players. Jordan-based Aqaba Special Economic Zone Authority (Aseza), Dheeraj & East Coast from Dubai and major Indian developer Shipra Group have confirmed platinum sponsorship deals, while global property service company GVA Intercapitalis has taken silver.

First Asian Real Estate Show-2007

Al Fajer Information and services ,a pioneer in the exhibition industry is going to conduct Asia’s First Real Estate show which will be commencing from april 12^th to april 14^th at hall 11,Pragati Maidan New Delhi. This show will expose the latest developments in the real estate sector for leading,local,regional and also other international developers.India,Malaysia,Singapore,Spian,USA,and United Arab Emirates are expected to participate to reflect the international appeal of the show.

This platform will provide international properties to Indian as well as the vast opportinity to the global estate player to invest in Real Estate India.This great occasion is going to be a big platform where all the professionals in the field of property and real estate will interact with each other the investors and the property developers by exchanging the ideas and views.

Exhibition, Education and Entertainment will be main elements of this first Asian Real estate show 2007 as India has opened its door to foreigh investors in Real Estate India.

General Manager, Mr. Satish Khanna said "We are always keen to bring best of Industry people in our real estate exhibitions to strengthen our continuous presence in the market & to provide the perfect opportunity for developers to accurately gauge market trends and at the same time reach key decision-makers to promote project developments. There is tremendous opportunity to meet up with investors and professionals in the real estate investment market both locally and internationally & we are looking forward to replicate our success."

Introduction

HI.. this is mew. Welcome to my real estate india blog. Here you will find latest about real estate india which will be very useful for you if you are associated with the realty business.Now a days a booming time for indian realty.