India real estate fund
In the world economy, real estate constitutes significant fraction of total wealth held by the countries in the form of land and buildings. Though real estate prices fluctuates depending on the economic life cycle, it is been proved to be the best source of investment.
Wants to buy a property or a house in India
India is an abode for realtors. Booming Indian economy is contributing to real estate industry. Real estate industry includes various players-realtors, builders, brokers buyers and sellers. real estate refers to immovable property. It includes Residential Property, Commercial Property and Industrial property.Real estate has become a major area of business. Purchasing real estate involves a large amount of investment, and the real estate industry has evolved into several distinct fields. The price or value of real estate, although it generally tends to increase over time, is highly volatile and erratic. Specialists are often called on to valuate real estate and facilitate transactions.
Some kinds of real estate businesses include:
• Appraisal - Professional valuation services
• Brokerages - Assisting buyers and sellers in transactions
• Development - Improving land for use by adding or replacing buildings
• Property management - Managing a property for its owner(s)
• Relocation services - Relocating people or business to different country
• Even the construction industry can be treated as part of Real estate industry
Real Estate Pricing:
Residential property is priced in square foot using mean and median price. The median home price is the threshold which divides the market into two equal halves. One half of all property is priced above the median and the other half below the median price. Square foot pricing-In per square foot pricing, the total price of a unit is divided by the square footage of the unit. Sales price per square foot-Sometimes real estate prices are measured by the price of each square foot. Rent per square foot-Rent is also calculated by square foot.
Because of the IT boom in India, real estate prices are above median home price. The properties in four metros-Delhi, Kolkatta, Chennai and Mumbai as well as in other emerging mini metros like Bangalore, Hyderabad, Jaipur, and Guragon etc are selling out like hot cakes. Major customers of these properties are IT companies looking out for Western Style office space and Software professionals has higher purchasing power with higher take home and more onsite opportunities in hand. The square foot price is rising per year and reaching new heights. Also the banks are running business briskly as loans are availed against the mortgages (i.e. the property).
Demand for Housing :
The main determinants of the demand for housing are demographic, income, price of housing, cost and availability of credit, consumer preferences, investor preferences, price of substitutes and price of compliments.
Supply of housing
The determinants of supply are availability of land, builders, availability of credit and skilled labor. Recent reports indicate that the share of real estate as a percentage of Indias GDP has risen steadily. Returns from this sector have been far more than expected from other investment alternatives in the market. The rates of commercial real estate across metros and emerging metros in India are higher than global real estate markets. The IT and ITES sector has grown beyond imagination contributing to rising price of real estate in India. As the personal disposable income is rising, people are ready to buy property at any cost as easy credit is available from bank and the tenure ranges from 5-20 years. Also it is good source for investment. Apart from IT, other industries like biotechnology, insurance, banking have also been growth segments becoming the driving factor for real estate demand. More and more malls are coming up in cities, be it big or small providing all the services under one roof. The MNCs setting up offices and manufacturing units in India is another driving factor and the cities are expanding rapidly to accommodate the cross cultural Indian communities residing in different parts of the globe
Belgaum, Bhopal, Bhubaneshwar, Cuttack, Dehradun, Faridabad, Ghaziabad, Guwahati, Hubli-Dharwad, Indore, Jamshedpur, Kanpur, Kolhapur, Ludhiana, Madurai, Mangalore, Nasik
Most of the transactions happening in metros are on the outskirts of the cities. The area ranges 15,000-100,000 sq ft. And within the cities the MNCs are looking for office space for 5,000-10,000 sq ft. Even customers who believe long term investment in real estate buy more space keeping in mind of expansion opportunities in future.
Conclusion:
A list of new corporate are having tie ups with property management companies. The value of Indian real estate industry is driven by global economy.
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