Buying a House? 7 Things to Check Before You Seal the Deal

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Buying a House? 7 Things to Check Before You Seal the Deal
Buying that perfect home is not the easiest task. Some wait for the perfect deal to come up while some may even spend a lifetime waiting to build or buy the right home, but it may just never arrive. Undoubtedly, it is one of your biggest financial purchases in your lifetime, so you would want it to go perfectly, be it the first time or the last. When you find yourself unable to save enough for a new house purchase, is when ‘planning’ comes in. Planning your financial aspects is as important as saving. Also, what should you consider before buying a house? Is it the location or the budget? Or is it going to be a choice to be made between a spacious house and a holiday home?  

Here are seven things that you should check before you seal the deal.

I) Budget

One of the most important home buying tips is to decide on a budget. This helps you decide what kind of house you will end up buying. To avoid a wrong financial decision that will turn the experience nightmarish, do a careful study of your finances before you start scouting for a house. Adding up all your income, determine what kind of expenses, investments and additional financial commitments you have. In the case of your spouse, parents or children contributing to the purchase, doing a joint calculation will make the task easy.

 A thorough calculation will give you a rough idea about how much money you can set aside per month for the house purchase. After deciding the full budget, the main objective is to break it up into down-payment and the monthly EMI that you can afford to let go from your income without getting hard-pinched. Once you determine the affordable amount, you can decide on the type and location of the house.

The first payment that you have to make is the down-payment. Banks will finance a maximum of 80-85% of the property cost and you will have to shell out the other 15-20%. But don’t spend every last penny in the down-payment or borrow from other sources. Beware of taking loans from sources like family members, colleagues or your office. Banks don’t include stamp duty and registration charges in the property cost, so the entire amount has to be borne by the buyer alone. Next comes monthly EMIs which may run for over 20 years, in many cases. Plan it keeping in mind your financial commitments (children’s education, medical needs and emergencies, family vacations, etc).

 While deciding the final budget, plan out in such a way that you have some money left (for other uses) after the down-payment is made. Also, make sure your monthly loan payments do not exceed 40-45% of your net income.

  II) Home Loan

 With increasing property prices, when you don’t have much choice but to opt for home loans, look for a bank that’ll give you an easy home loan with the minimum rate of interest. There are many websites (mostly of home loan companies), which have online EMI calculators. You can calculate your monthly EMIs using these easy tools. Use Housing.com’s EMI calculators to get the best customised offers too. Most banks and home loan financial companies have information on their websites stating eligibility and the rate for home loans. The most popular ones are SBI, HDFC, ICICI Bank and Axis Bank among others.

 After you collect information about the lenders, you can do a comparison about which lender offers the most convenient loan. Home loans are determined based on the location of the property, history of the developer and can be obtained for both new and resale property.

When it’s a resale flat, most lenders choose to value the property independently before providing the house loan. This loan is based on their value instead of the cost mentioned in the purchase agreement. Next comes the choice between ‘fixed rate of interest’ or ‘floating’ or a mix of both. Most people tend to get confused regarding this part and end up taking advice from anyone, including the broker. Take help from the bank’s relationship manager, instead, or consult a property expert, as your entire financial burden will depend on it. Also, consider flexibility on the bank’s part to adjust the EMI amount or tenure in the case of an interest rate revision.

III) Location

 After your financial calculations are done, decide on the location of your property. Where exactly do you want your dream home to be? Would you prefer a suburban location or an urban area? Do you want to live in a peaceful isolated community or close to the main hustle-bustle of the city? Can you compromise on a little more time on travelling instead of living in a crowded area?

Before going ahead with the purchase, you should check out its distance from public amenities, hospitals, marketplaces, malls, corporate offices, schools/colleges, police station, etc. Also, ask around about security of the place, especially if you’re a single woman. Is it a crime-prone area or is law and order well-maintained? Home Buying Tips Also, enquire if the place gets affected in the monsoon and if the area comes under the municipal corporation.

Check if a regular water supply is available and if there is a power shortage in the area. Only after checking out these crucial criteria, go ahead with the location. Also, remember that the price of the property depends on the locality and the area. Some banks do not offer loans, in particular to black-listed areas, so beware of them in order not to be cheated.

IV) Type of Home

 Right after you have decided the budget, the amount of the loan required and the location where you want your residential property to be in, the task becomes easier. Next, you have to decide the type of home you want to own.

 This could range from an apartment, villa, flat, duplex, penthouse, row house to a big bungalow. There are many factors which you need to consider before deciding the type of house. Right from the size of your family to your professional needs, the size and type of home depends on many factors. Will your family become bigger any time while you’re in this house? Do you have plans to get a pet? Would you rather have a big kitchen instead of a luxurious bedroom?

V) Insurance

 Insurance is the most forgotten factor through the excitement of buying a property. The overwhelming experience of buying a house may make you forget that everything needs to be protected, including your hard-earned house. “India is one of the most under-insured countries in the world as non-life insurance sector has a penetration of only 0.7 percent in the country,” P. Chidambaram, former Finance Minister, said. Among 200 general insurance products available in the market today, around eight of them offer home insurance products – ICICI Lombard, TATA AIG,

HDFC Ergo, United Insurance, IFFCO TOKIO Home Insurance, The New India Assurance, Bajaj Allianz and The National Insurance Company. Don’t forget to buy any of these after carefully reading the document as you can protect your home from damages caused by calamities, burglary or a fire accident. This will not only insure your home but also keep you protected from losing all your investments during the house purchase.

VI) The Devil is in the Details

 Many get tempted to ignore small details while buying a house, which may not seem to be so crucial initially. Some builders bundle up amenities as a preferred option. They offer security, various facilities such a swimming pool, gym, library, park, coffee house, etc., which constitute society charges! Make sure you also inquire about the annual maintenance charges before you buy a property. In most cases, you have to pay a share of the overall building maintenance.

 Home Buying Tips

Enquire if there is electricity backup in the community or the building as frequent power-cuts are more or less common. You should also check if the lifts in the building work properly and the lighting within the house and in key common areas such as hallways and stairwells have 24/7 power backup.

Is Pune still the Oxford of the East?

http://www.sakaaltimes.com/sakaaltimesbeta/20111205/4704413316152401302.html

Sakaal Times - Is Pune still the Oxford of the East?

Two factors have contributed to Pune’s emergence and predominance as a centre of excellence in education. The first was the presence, over the years, of stalwart figures like Phule, Gokhale, Tilak, Karve, Agharkar and others; and later, the establishment of some of the finest institutes of learning and research in the city. By the mid-90s, Pune had been called the Oxford of the East. But are we still so ? Sakàl Times finds out.

WE HAVE LONG WAY TO GO, MORE NEEDS TO BE DONE

Yes, I do believe Pune is entitled to be called the Oxford of the East, but we still have a long way to go, and much more needs to be done to come up to internationally acceptable standards as far academic excellence is concerned.

It is not as if we do not know what needs to be done. The Union HR ministry, the AICTE, the universities, all have viable plans, but our systems are slow.

My institute has just signed an MoU with the Statfordshire University in UK. We will be exchanging students and faculty. There must be more such tie-ups to bring Pune on the world academic map.

The initiative lies with both private sector as well as the government. If Pune is to retain its position as Oxford of the East, we will have to attract students not only from all over the country, but from all over the world.

Capt. Shivaji Mahadkar, honorary secretary, All India Shri Shivaji Memorial Society

PUNE PROVIDES AFFORDABLE AND QUALITY EDUCATION

Pune is still the most sought-after city for Indian and overseas students aspiring to pursue higher education. Hence, even today we can boast of being the Oxford of East. The education imparted in institutes here is the best in terms of quality, yet it is affordable to all. This is an unique feature of our educational system, and the reason why the city shines on the global map.

Dr Gajanan Ekbote, president, Progressive Education Society & former pro-vice chancellor, Maharashtra University of Health Sciences
LET US NOT COMPARE OUR EDUCATIONAL STANDARDS WITH FOREIGN UNIVERSITIES

As it was in the past, Pune remains the educational capital of India even today. But I believe we should not draw any comparison between education offered here and that in any eminent foreign universities.

If we refer to history, Nalanda and Takshasheela vidyapeeths in India were the global hubs of education in the olden times. Taking inspiration from that, we should try and carve our own distinct identity by offering high quality education in all streams of knowledge.
Dr Vishwajeet Kadam, secretary, Bharati Vidyapeeth Deemed University, Pune

STUDENTS FROM INDIA AND ABROAD THRONG TO PUNE

Yes, Pune is still recognised as the Oxford of the East because a number of quality educational institutes are being established here even today. Students across the country and around the world are attracted to the city due to the wide range of professional courses, quality education and academic environment here.

Dr R G Pardeshi, principal, Fergusson College

PUNE LEADS IN IT AND BIO-TECHNOLOGY TOO

The city is indeed the Oxford of the East! Earlier, it pioneered in imparting education in

streams like Arts, Commerce and Science, and now Pune leads in professional education as well as newer streams like IT and biotechnology. In my opinion, the city scores over many renowned foreign universities, in terms of the number of educational institutes as well as the quality of education offered by them.

P A Inamdar, president, Maharashtra Cosmopolitan Education Society

FACILITIES AND ACADEMIC ENVIRONMENT HELP INTELLECTUAL GROWTH

Pune is still the Oxford of the East. The literacy rate in the city is on the rise. The infrastructural facilities and academic environment are also conducive to intellectual growth. Pune has a good number of colleges and universities, which offer various kinds of opportunities, especially in research and development. There are facilities that help students acquire super-specialisation skills required over and above the professional skills that are already available, like knowledge of a foreign language, additional computational tools, access to industry for practical projects and so on. Students also get exposure to the global scenario in their respective fields, as they share space with foreign students who come to study here.

Sanjay Chordia, founder-president & chairman, Suryadatta Group of Institutes

WE HAVE BEST RESOURCES FOR MEDICINE AS WELL

Pune was and still is the pioneer in the field of education and can be aptly identified even today with the sobriquet, the Oxford of the East. As far as medical education is concerned, Pune has the best resources too. The city is producing doctors whose expertise are acclaimed all over the world. Also, medical colleges in Pune have been producing the best faculty that have a thorough understanding of the field. All this makes Pune a global leader in education.

Dr Mrudula Phadake, former vice-chancellor, Maharashtra University of Health Sciences

THE NUMBER OF OUTSTATION STUDENTS IS RISING RAPIDLY

Among other cities in India, Pune is still the most preferred destination for education. Over a period of time, we have witnessed a marked rise in the number of educational institutions in the city. The number of outstation students, who come to Pune to pursue their studies, has also been growing rapidly. Therefore, we can proudly say that Pune today is the Oxford of East, like it was in the past.

Dr Anil Sahasrabudhe, director, College of Engineering Pune

MODERN AND ANCIENT STUDIES GET PRIORITY HERE

Yes, it definitely is the Oxford of the East. No other city in the country holds the status of being the Oxford of the East. It’s not only due to the large number of educational institutes, but also because of the quality of education imparted here. Along with modern branches like engineering, medical, computers and so on, it’s a prime centre for archaeological studies as well. Historical institutions like Bhandarkar Oriental Research Institute, Bharat Itihas Samshodhak Mandal, Tilak Maharashtra Vidyapeeth, University of Pune and Deccan College Deemed University have retained the quality of research and education. Pune has the right combination of research centres of modern studies and ancient art and culture. Mushrooming of educational institutes and colleges in the city has not affected the degree of excellence in education; in fact, Pune has maintained its standard of education.

Dr G B Deglurkar, president, Deccan College Deemed University

WE SHOULD BECOME A MODEL FOR OTHERS

Pune is known as the hub of education, not only at the national level but also on the global map. However, we have to strive hard to keep this status intact. The quality of education offered by our institutions here should be of the international level or say even a step ahead, so as to become a model for others to emulate. This would only ensure that Pune remains a preferred hub of education.

Dr AV Patwardhan, chairman, Deccan Education Society

NO OTHER INDIAN CITY CAN DO JUSTICE TO THIS TITLE

As of today, Pune has retained its identity as a centre of education and culture. When we compare it with other cities in India, none of them is on a par to hold this title. I have visited Oxford and Cambridge universities and I can say that in spite of various problems like environmental pollution, vehicular traffic, increasing population and so on, Pune is competent. There will come a day when Western countries will look at India, Pune in particular, for a value-based universal education system. I believe in the prophecy Swami Vivekanand made in 1893 that India will emerge as a knowledge corner of the world in the 21st century, and I think Pune will be its knowledge centre.

Dr Vishwanath Karad, founder, MIT group of institutions

(Inputs by Prasad Joshi, Supriya Shelar, Prachee Kulkarni & Shashwat Gupta Ray)

NOT OXFORD, PUNE IS THE BOSTON OF THE EAST !

Dr S B Mujumdar, Chancellor, Symbiosis International University, recalls, “It was in the late 50s that the then prime minister of India Pandit Jawaharlal Nehru play casino happened to visit Pune and saw several constituent colleges affiliated to the Pune University, and he commented that Pune appears to be the Oxford of the East. That was the genesis of the sobriquet.”

“But I think we need to re-think on how accurate that label is in the present context. The vice chancellor of Oxford University, Prof. Andrew Hamilton was in India this year, and he informed that Oxford has 31 colleges which are all autonomous, frame their own syllabi, and are either self-financing or funded with endowments; only their degrees are given by Oxford. This is quite unlike the situation that now prevails in Pune. We now have one university and seven deemed universities, and therefore it is not quite accurate to call Pune the Oxford of the East,” explains Dr Mujumdar.

“I would much rather call Pune the Boston of the East. You see, Boston in US is an academic center with more than 100 colleges and universities including renowned ones like Harvard, Cambridge and Massachusetts. Pune is more like Boston than Oxford,” he points out.

On a lighter note, he adds, “There is another curious similarity between Boston and Pune. Just as the well known educational institutions of Pune were largely set up by Puneri Brahmins, the wealthy and influential British origin families of New England in US who developed academia in Boston and Harvard are known as the ‘Boston Brahmins’.”

WE NEED A REALITY CHECK TO MATCH GLOBAL QUALITY

Prataprao Pawar, chairman of the Sakal Media Group, an engineer by qualification, who studied in Pune, feels that the city earned the title of the Oxford of the East at a point of time when Pune was the preferred destination for students seeking professional and technical courses which were offered by institutions which had earned a reputation for academic excellence. But that was more than three or four decades back.

“We need to take a reality check. We still do not match global standards, and several institutions in the city do not offer the quality of education that can match industry expectations. We need to be able to match the standards of the IITs and the IIMs,” he points out.

“I am told that 25 % seats were left vacant in Pune. This means the city is no longer the sought after academic destination that it once was. There is a strong need for involving industry to create courses that fulfil existing requirements. Examples like the participative content created with Bharat Forge in a Baramati college, need to be replicated,” he says.

“I am not against commercialisation of education provided there is upgradation of standards of teaching and research. Eventually we will have to contend with market forces,” he adds.

“But honestly, Pune has a long way to go if it has to truly justify the title of Oxford of the East,” he adds.

AMITABH DASGUPTA

editor@sakaltimes.com

EDUCATION HAS BECOME A PROFIT-MAKING BUSINESS
Actor Dr Mohan Agashe feels there is a vast difference between the past and present situation in Pune. He believes that with privatisation, education has become a business with profit as its aim. And that we shouldn’t even talk of Pune being the Oxford of the East.

“The current American pattern of education in the city is way too expensive and lacks professionalism. Degrees can be bought by paying money. Honestly, education in the city has neither quality nor reliability. At present, there are very few institutes that really impart education to students.” He also thinks this is affecting the lot of dedicated teaching professionals. “Moreover, the education today is also widening the gap between the rich and poor,” he says.

THE QUALITY OF EDUCATION LEAVES A LOT TO BE DESIRED

Dr Deepak Shikarpur, an IT entrepreneur and writer, says that Pune has a vast base of educational institutes of global standards and has created an impact as far as the number of institutes is concerned. “However, the quality of education offered here leaves a lot to be desired. Whatever worked in the 20th century need not work in the 21st. We should keep in mind that in today’s technology-driven higher education scenario, history will not repeat itself on its own.” He adds that Pune is a preferred destination for many, including foreign students, but if it has to continue to lead the race, then the focus must be on quality and value-based education.

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Bringing Ravet closer to everything

2 BRT, one coming from Aundh and one from Nigdi, two subways connecting Akurdi , New railway line to connect Pune and Lonavala : what more do you need to become the next centre of the promising PCMC !!!

read the news extracts and happenings around for the concerned news !

Railway under bridge at Akurdi station inaugurated PUNE:

Travel from Nigdi to Ravet will become easier for thousands of people as the second railway under bridge (RUB) near Akurdi railway station has been inaugurated. 

Anil Suryavanshi, executive engineer, PCNTDA said, "The length of subways is 47 meter. The width is 8.58 meter and the height is 4.78 meter. The first new subway was inaugurated in February 2014 which reduced the vehicular congestion on approach roads of the old subway. The second subway was inaugurated by district guardian minister Girish Bapat last week."

 Earlier, residents of newly developing areas of Ravet, Walhekarwadi, Kiwale and parts of Akurdi crossed the railway tracks through a water logged subway to go to Nigdi-Pradhikaran, Pune-Mumbai highway and other areas.  There was a demand from residents of Akurdi, Ravet and Nigdi that a modern wide subway be constructed. The Pimpri Chinchwad New Township Development Authority (PCNTDA) invited bids for the construction of new subway in March 2010 at cost of Rs 8.1 crore.

PCNTDA had planned to construct two separate subways using push box technology for light vehicles and two-wheelers, namely one for going from Nigdi to Ravet and other for coming from Ravet to Nigdi.  http://timesofindia.indiatimes.com/city/pune/Railway-under-bridge-at-Akurdi-station-inaugurated/articleshow/48759306.cms http://m.timesofindia.com/city/pune/PCMC-changes-design-of-Ravet-ROB/articleshow/48460805.cms

PCMC changes design of Ravet ROB PUNE:

The Pimpri Chinchwad Municipal Corporation has changed the design of its railway overbridge (ROB) at Ravet due to expansion of tracks on the Pune-Lonavla section. A third track is being planned on Pune-Lonavla stretch. On July 8, the railway authorities sent a letter to the civic body asking it to shell out Rs 26.51 lakh extra before change in overbridge design is approved.

 As per the resolution, the civic body plans to develop a 45-metre wide bus rapid transit system (BRTS) route from Bhakti Shakti Chowk in Nigdi to Mukai Chowk in Kiwale with Pune-Lonavla railway track crossing it at Nisarga Darshan Society.  The PCMC sought to construct a railway overbridge at this spot for providing easy passage of vehicles. We have just the right project for you Arun BLU

Real Estate slowdown: 5 factors that can revive the sector

http://www.financialexpress.com/article/economy/real-estate-slowdown-5-factors-that-can-revive-the-sector/125918/ Real Estate slowdown: 5 factors that can revive the sector

The real estate slowdown in India appears to be taking much longer to get stable. The sector has been going through a rough phase with inventories piling up and sales down. Declining consumer trust in the sector can be revived if developers exhibit appropriate construction progress in order to avoid fear of delays in completion. To counter sales developers have shown caution with controlled launches. However, if market trends were anticipated beforehand such moves should have happened earlier. Sales of residential units declined significantly over the last two years, particularly in the initial periods.

The number of units that are sold from both new and old projects every quarter form the sales rate, and from 14% in 1Q13 this has steadily declined to below 9% as of mid-2015, thereafter remaining stable at low levels, according to global property consultant JLL India. The report further added that the slowdown trend has been observed in seven leading metros with the situation particularly grim in markets such as Delhi-NCR, where the sales rate has declined by 10%. Despite a big fall in Pune, Hyderabad and Kolkata, the sales rates of these cities still remain in double-digits at 12-13%.

Mumbai’s fall was moderate, owing to low sales rate throughout the said period. Suvishesh Valsan, AVP – research & real estate intelligence service, JLL India lists out five broad factors that influence real estate markets, including country’s GDP and employment scene, credit availability, interest rates, housing supply dynamics and consumer confidence. These factors indicate the formula for revival could lie within the reach of builders and policymakers.

1. GDP and employment scene: In contrast to the housing sales rate, India’s GDP has been rising consistently over the last two years from 6.9% y-o-y growth in fiscal year 2013-14 to 7.3% in 2014-15, and is expected to be over 7.5% in 2015-16. Also, the monthly reports of leading recruitment firms in India suggest that hiring activity has picked up pace, particularly in the last year.
2. Credit availability: RBI data on the growth in home loans as well as the growth in credit to the construction sector (including loans to public housing agencies) reveals healthy credit offtake. Home loans have grown at a 17% y-o-y average over the last two years (until May 2015) whereas bank credit given to the construction sector grew at 22% y-o-y – one of the highest levels of all sectors.
3. Interest rates: CPI inflation has declined sharply by around 3% in the last two years and it now stands at 5% (as of May 2015), which is well within the comfort zone defined by the Reserve Bank. Consequently, the RBI has responded with three rate cuts (totalling 75 basis points) since the start of 2015, with a possibility of more rate cuts in the near-term.
4. Housing supply: Developers have consistently launched close to 60,000 units every quarter since 1Q13 despite the slowing demand. As a result, developers’ unsold stock has mounted, particularly in NCR-Delhi, Mumbai and Chennai.
5. Consumer confidence: With above factors portraying a positive picture for the economy, the influence on consumer confidence is positive. This is also borne out by various market reports. However, the rising consumer confidence has not translated into higher demand for apartments.

Real estate slowdown: Key points – Delhi-NCR, where the sales rate has declined by 10% – Pune, Hyderabad and Kolkata, the sales rates of these cities still remain in double-digits at 12-13% – Mumbai fall was moderate, owing to low sales rate throughout the said period. First Published on August 26, 2015 3:02 pm© The Indian Express Online Media Pvt Ltd

Real estate is second largest employer: Siddaramiah

http://www.siasat.com/news/real-estate-second-largest-employer-siddaramiah-819929/Real estate is second largest employer: Siddaramiah   

 Bengaluru: Real estate sector is the second-largest employer in India after agriculture and is slated to grow by more than 20 percent in the next decade, said Karnataka Chief Minister Siddaramiah on Saturday. “Real estate is the second most active sector attracting private equity investors in the last ten months,” he said at the seventh convention of the National Association of Realtors (NAR), touted as India’s biggest real estate convention.

 Zeroing in on the state, Siddaramiah said Bengaluru is the fastest growing city and top real estate market in India beating other big cities like Mumbai, Hydeabad, and National Capital Region (NCR). Leading real estate player Prestige Group’s chairman Irfan Razack said that the real estate industry played a pivotal role in bringing hundred of large global MNCs like Amazon, JP Morgan and many others to come and set up shop in Bengaluru.

Siddaramiah also said that while Bengaluru is known as the IT capital of India, this industry would not have grown without the important role played by the real estate industry. “Bengaluru consumes eight million square feet of real estate space every year and produces 80,000 jobs,” said Razack, adding that the government is the biggest beneficiary of the real estate growth in India as it earns a huge amount of revenue through stamp paper, registration, taxes and others. As many as 1,200 delegates from various nationalities attended the NAR – India to deliberate on the crucial issues pertaining to real estate.

 Realtors, developers, architects, lawyers, investors, venture capital firms, equity funds, chartered accountants, financial institutions, property valuers and others from across India participated in the event. “It (NAR – India) also helped create a platform for over 26,000 companies and 1.2 million members across the globe to network seamlessly and do business,” said its chairman Farook Mahmood.

Why real estate may not crash

http://wap.business-standard.com/article/opinion/bhupesh-bhandari-why-real-estate-may-not-crash-115073001745_1.html

Bhupesh Bhandari: Why real estate may not crash

 Of late, there has been much talk of an imminent crash in residential real estate. The sector is expected to crumble under the weight of high inventories. After the clampdown on black money, fresh sales have come to a halt. Thanks to low sales and the banks tightening the screws, builders are in a financial bind, which is expected to precipitate distress sales. One research house has predicted that this will shave sizeable percentage points off India's growth in the coming quarters. Actually, the sector has been stuck with high inventories and faced a liquidity crunch for at least two years now - and yet, prices haven't tumbled.

There has been some correction, but there is no evidence of a crash. That is because a sizeable number of builders are not highly leveraged, and can therefore afford to sit on unsold stock for some more time. This is how residential real estate works in India. The builder pays for the land and then sells the project. With the money paid by buyers, he carries out the construction. The only cost he has to pay out of his own pocket is the land. And if he is a serial builder, he will buy the land from the money he raised for earlier projects - there is no monitoring of these funds. In Noida, one of the real estate hotspots in the country, he needs to pay only 10 per cent upfront and the rest in installments over several years.

 Many builders who have not been able to sell apartments have simply halted construction, rather than take debt to complete their projects. A majority of projects are therefore behind schedule. Buyers are helpless. Some builders had offered to pay penalties in case of a delay, but the promise comes laden with so many riders that buyers seldom get paid. Those builders who are highly leveraged do indeed have a problem in their hands. While banks had turned their back on them long time ago, NBFCs and private lenders have also started to say no to them. Most of the builders in this category are those who are into commercial real estate as well, where pre-sale does not happen. Such projects are financed out of debt. With the debt tap turned off, and the equity market having tuned cold to real estate years ago, these builders are now desperate. Some large builders I know admit that they are inundated with requests from those in distress to buy their projects.

A Godrej Properties executive recently told Business Standard that his company has been approached by builders who are unable to complete their projects. But not all stuck projects will sell - those in the boondocks don't stand a chance. It is, after all, a buyer's market. Those who have the money will cherry-pick their projects. This might lead to a sea change in the country's real estate landscape. So far, large business houses have stayed away from it. The reasons are obvious: the cash transactions involved in the business, the headache of negotiating a plethora of rules in every market (every state has its own set of rules) and the never-ending speed money. But now they see an opportunity in the large number of projects that have got all clearances but are stuck because of the lack of funds. Trust in builders is really low amongst home buyers.

They are looking for projects that are backed by sound corporations. And that is where business houses like Tata, Godrej, Bharti and Mahindra have the opportunity. In spite of the crisis, the love affair of Indians with real estate is far from over. Projects at the right price (The euphoria over premium homes has died down: not a single premium project has been launched in Mumbai so far in 2015, says a report by Knight Frank!), and backed by respectable names, will still find buyers.

This trend was in evidence earlier this week when Eros, a fairly large builder, tied up with Bharti Realty for a large-sized project on the outskirts of Delhi. It is worth noting that Eros has already executed projects in that area but chose to partner with Bharti Realty for this one. This is a clear indication of things to come - expect more such announcements in the future. Will it mean lower prices for home buyers?

 That may not happen. This is because builders have sharply cut down new launches, and there is a slight uptake in demand. According to Knight Frank, in the second half of 2015, launches will be down 52 per cent (from 37,643 in the second half of 2014) to 18,000, while absorption will improve 24 per cent (from 12,075) to 15,000, which will cause the weighted average price to climb three per cent. The crash in home prices may not happen, after all.

Facility management market to cross $19 billion by 2020: Report

http://realty.economictimes.indiatimes.com/news/industry/facility-management-market-to-cross-19-billion-by-2020-report/48173841
Facility management market to cross $19 billion by 2020: Report

 GUWAHATI: The Indian facilities management market is estimated to grow 17 per cent to cross $19 billion mark over the next five years, says a report. "The swiftly growing services sector is creating huge potential for FM services, which is anticipated to grow at a CAGR of around 17 per cent during 2015-2020 and reach to approximately $19.4 billion by 2020," the report by Global Infrastructure Facilities and Project Managers Association (GIFPMA) said.

The report pointed out that various factors such as boom in real estate, increasing awareness levels, growth in retail and hospitality sectors are the major drivers of this sector. "In light of the immense growth potential that the sector promises, many players, including foreign players, have dotted the Indian market... India's service sector is the fastest growing part of its economy," the study said. As per the report, the overall services sector held 33.3 per cent of GDP (at current prices) in 1950-51 and it grew to 64.8 per cent in 2012-13. Commenting on the findings, GIFPMA President Amit Raual said: "Companies are increasingly concerned about the skills of the manpower provided by them with changing needs of the customer...

 It was also found that the qualification and the minimum salary of the manpower vary with the type of service to be offered." As per the report, with administrative and HR departments of around 300 companies across India, 87 per cent of the respondents expect knowledge of basic English, 87 per cent of them expect dress code and 73 per cent expect tidiness and basic etiquettes. "Almost 93 per cent of corporates are concerned about the police verification of the people deployed at sites," he added. Talking about the salary structure, Raual said it varies with the type of service to be offered, which is lower in soft services.

GIFPMA analysis highlights that soft services is dominating the market with the share of about 65 per cent, in which housekeeping and security occupy large shares of 45 per cent and 34 per cent respectively. "HVAC/Electro-mechanical is clearly dominating the hard services sector and is expected to occupy 90 per cent of the market in 2015," it added. As per the report's finding, more than 60 per cent of these services are performed in-house, but this trend is changing rapidly.

 "The corporate sector, especially IT/ITES, BPO/KPO and banking and finance sectors are rapidly inclining towards outsourcing the services," the study said. Research also found out that, currently 80 per cent of the services offered are on a sub-contractual basis, but it is expected that the trend will shift towards integrated facility management as organised players are entering the market.