Realtors Need a Unique Success Mantra

download (17)The real estate demand has reached around 1.35 billion square feet by 2020 in India. This is said to be up from around 900 million square feet currently. Out of the total numbers around 85% will be for the residential properties in India.

According to the reports, the sale of residential properties have slowed down due to low demands by customers at the current rates. This is leading to an inventory overhang is metropolitan and other major cities. Due to this slowdown, the builders have increased the discounts and are offering attractive offers so that there is some improvement that is seen in the condition of residential properties in India. However, the developers as well as the real estate sector needs to do something very differently to achieve success in this sector.

There has been a change in the real estate model and this will change more often and continuously and at a more rapid speed. However, the developers need to find the ways that these changing scenario can be a profitable one for them as well as the buyers. The builders are not able to understand this changing scenario and how should they cope-up with these changes. Once they get a hand on experience about these changing scenarios, definitely, there is no looking back for the residential properties in India.

Traditionally the charges that were attributable to the real estate firm was in managing approvals, land acquisition and agglomeration. However, now people are constructing sustainable, concrete business and value creating industries around very good process managed real estate along with very good execution skills. These definitely are the ways one can be successful in this changing scenario of the real estate in India and with this the developers need to understand and cater to the demands to the buyers so that they do not hesitate in buying their dream home. Thus, the real estate firms needs to upgrade themselves with the changing environment and reach new heights.

There will be financial protection for the home buyers whose projects do not complete on time. Any delay in the construction will provide benefits to the buyers. The buyers are allowed to claim for tax benefits of Rs 2 lakhs after possession if they invest in any under-construction building and it does not complete within 3 years. However, there will be a reduction of 30,000 if the builder delays the construction beyond the limit and thus they will have to pay higher interest. Also, the first-time buyers have to pay additional rent if they are buying homes for self-use.

 

Corporate Real Estate Occupiers Are Aggressive on Expanding Offices in India

download (11)Recently, a popular property consultant firm conducted a research on mid-sized corporate real estate occupiers during the period June – July 2015, and gathered the responses of leading corporate firms headquartered in India and overseas. The research report says that, corporate real estate occupiers seem to be very aggressive in occupying office spaces across India.

Basically, the survey pointed to the choice of work space being progressively driven by the three main objectives; they are Talent (availability and cost), Infrastructure (social and physical) and Real Estate options. It has to be noted that the survey respondents included the corporates based across different industries and the representatives of typical Indian office space occupiers.

Below mentioned are a few key findings of the research:

  • The corporate occupiers in India are more likely to adopt the workplace strategies. The survey also revealed that the occupiers are being very efficient and are more inclined to adopt the efficient strategies, with most of the corporates mainly preferring to adopt open space workstation formats.
  • The leading corporate space occupiers continued to occupy the core locations and central business districts of major cities. The study also explored the preferences of the respondents across various occupation options, and the result indicated that, almost about 75% of the respondents preferred to lease, pre-lease or purchase the space within the prime locations of the cities.
  • IT/ITeS companies are planning to expand their operations across major cities in the southern part. The respondents of other key sectors like ecommerce firms, health care and others preferred Mumbai and Delhi NCR for their future expansions.
  • Office space occupiers across the leading industry segments were asked to chart out the direction in which they want to expand their office over the next two years. The results indicated that, most of the IT/ITeS firms (almost about 70%) of the respondents are more likely to expand their operations in Bengaluru, Hyderabad and Chennai, while the ecommerce and media firms chose to expand in Mumbai and Delhi NCR in the next two years.
  • It’s expected that the headcount of corporate offices will increase in the next two years as most of the respondents seemed to be very aggressive on expanding their operations in India. Almost 80% of the respondents from the sectors like IT/ITeS, consulting, research, ecommerce are planning to increase the employee headcount in the next two years.

Many respondents were comfortable with the corporate real estate strategies of expanding their operations within the existing markets. The above mentioned key findings clearly indicate that the occupier sentiment is highly positive towards the business environment of India for the next two years.

Sahaana Jai, the author of the above article is working in a real estate concern offering corporate real estate in Bangalore. She is a blogger as well as a web enthusiast. She writes articles, posts based on the needs and future of commercial real estate in Metropolitan cities.