Real Estate kolkata | Kolkata Real Estate | Kolkata Property

Is the Real Estate Bubble Big Enough to Naturally Burst in 2014?

Political uncertainty, liquidity issues, high interest rates and cautious sentiments are expected to underpin the real estate sector during the year.

One of the primary concerns for the real estate sector in the coming year is very clearly this: Will the much talked-about asset bubble inflate further or will it burst?

2013 was mired in existing challenges such as subdued sales, piles of unsold inventory and builders going bankrupt. These problems will continue in 2014 as well, and, given economic instability, matters could become worse. However, it is very difficult to forecast anything in India as the real estate market is not subject to a fixed pattern. A great degree of political uncertainty, liquidity issues, high interest rates and cautious sentiments are expected to underpin the real estate sector in 2014 too. The only positive energy in this sluggish sector springs from the fact that the sales, though slow, are not stagnant.

India’s real estate kolkata market has been faltering for quite some time as the economy remains under stress. Realty prices have been surging in an unprecedented manner unlike income levels which are not rising. The price increase is mostly speculative and can be attributed to the predominantly capital-driven nature of the sector.

It is an established fact that the real estate bubble in the developed world is a creation of the central banks strategy of keeping interest rates at a very low level. This excess money has also trickled into the real estate markets of emerging economies as overseas investors began to look for alternate investment avenues.

While the cause might be the same at home, the movement of capital across the various geographies in India needs serious analysis. Let us look at each of the significant markets to understand the creation of the asset bubble.

The MMR (Mumbai Metropolitan Region) market has a characteristic of its own (see MMR graph). There is huge latent demand but exorbitant prices make property unaffordable for most buyers. The price level here is way above the average price level of India but the annual acceleration is not very steep; in fact, it has been almost stagnant for quite some time. The realty cycle in MMR follows a long drawn pattern and has a low theta (angle of correction). The graph illustrates that the annual price growth post the 2008 meltdown touched 48 percent owing to substantial money coming into the MMR markets and then, after peaking at 54 percent in the second quarter of financial year (FY) 2010-11, the bubble started deflating.

After that, the MMR market with sky-high price levels and declining sales velocity was considered an unproductive arena and the funds inflow reduced. By sales velocity, we mean the ratio between monthly sales and total supply. The price rise after this, though persistent, has been comparatively slow. It is also interesting to note that even after a slow growth rate of prices, the pace of offtake has been slowing.

NCR (National Capital Region, which includes New Delhi), on the other hand, is an entirely investor-driven market. A lot of property in kolkata is being sold in sectors which may remain uninhabitable for a long time. The price rise post FY 2010-11 continued to be sharp and persists even today. After touching the threshold of 27 percent year-on-year in the second quarter of FY 2012-13, the growth rate has started to peter out. One can already see the correction in the secondary market in NCR. The situation indicates that the existing bubble in tier-I markets like NCR and MMR are at the threshold of bursting. Owing to the high level of unsold stock in these markets, the prices might soon begin to tip off.

Source: forbesindia.com

How can real estate investment make your retired life happier?

Real estate investment is preferred not only by working but by many retired persons also. Having a retail shop after your retirement is a good idea and you can have a steady source of income.

It is wise to make your retirement plans at the peak of your career itself. With good amount of money at your hand, you can decide how to plan for your after-retire life. Planning right will make your retired life comfortable and tension free. Real estate has always been a good investment option. A much safer option compared to stock market, real estate investment is preferred not only by working but by many retired persons also. You may be a beginner in this field and may wonder how to invest. Having a retail shop after your retirement is a good idea and you can have a steady source of income.

However, you need to consider few things before you actually invest your hard-earned money.

If you start executing your plan of having a retail shop during your service period only, you will be very beneficial. First of all, as years pass property price increases. Hence, if you buy the land or a shop beforehand, later you will be the beneficiary. Market study will be very helpful for you. After you have finalized that you want to have a retail shop , it is time to fix your budget. Depending on the budget, you will have to find a location. Location plays a very crucial role in determining the fate of your business. You should buy property from a developer who maintains a good track record. Do good research of the place where you are planning to buy the property. Check the current property rates and also the scope for further price appreciation. It is ideal to invest in upcoming locations where you can get property at cheaper price. You should also check that the location of your property has less crime rates. Otherwise there will be chances of robbery or theft or damage to your property.

Once you check all these things, you can invest your money and own a retail shop. You can either lend out the shop or you yourself can run the shop. A good time pass after your retired life and a decent source of making money as well.

Real estate agent: Great helping hand

A real estate agent has emerged to become a great helping hand for the ones who desire to purchase or sale their real estate properties.

Before purchasing an apartment, many people consider taking the aid of a real estate agent. This way, it becomes easier to get adequate help and right assistance. The one who is looking forward to buy or sell an apartment may not know anything about the current market condition. On the other hand, the real estate agents have got accurate information about market stability conditions and they are the best persons to whom one can seek assistance. Without their assistance, the entire process of buying and selling of homes and apartment can be a difficult task. If one is not aware of the present market situation, it is better for him to hire a real estate agent and benefit himself with the proper guidance of the agent.

The procedure of purchasing and selling becomes a whole lot easier and simpler with the correct guidance. Simple things can become difficult if one does not have proper knowledge of the actual market prices. It is important to hire a perfect real estate agent who has got all the information related to increase and decrease of the house prices. There are many benefits of hiring the services of an agent who is an expert in the field of real estate investment. Some of the benefits have been discussed below:

(a) Expert guidance: This is by far considered to be one of the most essential requirements in terms of buying and selling of real estate property. An expert and reputed agent serves the buyers with proper assistance in terms of shifting in market prices.

(b) Time-saving: The moment you hire an expert for handling the issues related to real estate, then he completely takes the charge and saves a lot of time of the buyer or seller as he can continue with his work.

(c) Active Representative: Owing to the market complications, it becomes immensely difficult for the buyer or seller to answer all the questions related to the purchase and sale of the real estate property. Hence, a real estate agent is hired to represent the buyer or seller who has answers to all the queries.

Which place in Kolkata is a better option for plotted investment?

The plotted development in Kolkata put forward a lucrative avenue for investment in the realty sector for the Kolkatans. At present plots of different sizes are available in the city and its outskirts conforming to the budget of the different potential buyers. Let’s take a quick glance on the areas that are potential enough for a fruitful plotted investment alongside buying residential apartment in Kolkata.

South Kolkata being an important location in the real estate map of Kolkata offers great options to the buyers in terms of retail shops, plotted investment and residential apartment in Kolkata. The areas that have gained great popularity in the context of offering favorable plots for buy include Diamond Harbour Road and Baruipur. Although both these locations lie in the outskirts of the city but still they have grown by leaps and bounds during the recent years with huge scale of development in terms of transportation networks that well connect the city with its suburbs. In the last two years or so the locations have seen a rise in the capital value by 15-30 per cent at least.

A buyer can easily find plots with area ranging from 1200-2500 sq.ft and even more. The plots are available for budgets as low as 10-20 lakhs or even lesser. The best part is that these same areas have great potential to get enhanced in their valuation over the next few years. Therefore investing on them will stand as a profitable option no doubt.

At the same time areas like Joka, Pailan, Amtala are also places where plots are available in huge scale and at favorably low price. Investment on them will indeed bear great fruits in due course. The extension of the metro railway network across the city is one of the vital driving forces behind the growth of these areas as lucrative investment options. This is the reason; they are the hot choices at present over buying retail shops or residential apartment in Kolkata.

Investment on plotted land has emerged as one of the great options in the realty sector in the city. They are rather more popular options over buying a retail shop or a residential apartment in Kolkata. Here is a brief look through the different regions having immense potential in that context.

How to opt for the right real estate agent

Owning a residential apartment happens to be one of the hugest dreams that every human being aspires to have. Considering the importance of what a house generally means to all, it is important to ponder upon the selection of a real estate agent who has expertise in the field of meeting people’s requirements. The people who are seeking homes or have already got their dream homes through a broker knows very well how important role a broker plays in their lives in getting them desirable homes. These days’ the minute you decide on buying a house you will be flooded with various opportunities to opt for a broker. Purchasing a house of your own accounts for making a huge investment and with an experienced broker one can easily choose a desired house. Searching a house without a broker can be a big nightmare as one is generally not accustomed with all the information of the area. Hence hiring a real estate agent who has all the necessary information is always a good as well as smart idea. While selecting a broker for yourself you must consider the following points without which you will feel lost and devastated.

(a) You need to ensure that the agent whom you have hired for yourself has a good market reputation as well as years of experience in the field. It is not every day that a man buys a house. The entire process through which the final papers of the household gets transferred takes a huge time duration, therefore hiring an experienced and skilled broker who can handle matters with care is required. A broker having good repute enjoys huge demand in the market.

(b) A broker who has good communication skills and who can manage both the sides properly is the one with whom one can easily work with. If a broker shows negative approach and attitude towards one party then it is quite evident that the other party will surely walk away breaking the deal. Getting along with all should be the mantra of the agent who looks forward to sealing the deal effectively.

(c) Market research is always necessary before assigning a broker. In order to know how efficient the broker really is, one needs to do research on the market reputation of the agent. For the people who have been investing in buying a house for the first time must ask others about their experiences regarding buying and selling of houses. This way one will be able to get a thorough insight of what all qualities should a broker possess? Word of mouth is of the most trustworthy sources through which one can get ample of information about the real estate agents. As this source is not necessarily created by any agent in particular hence one can rely on the various experiences which one gets to know from here and there.

(d) It is essential to have a word with more than one agent before deciding on one. As by interviewing many agents, one will get a detailed insight about their work experiences and details of handling matters in different situations.

Selecting a real estate agent while buying a house is always a good idea and by following some important points one can surely get a good real estate agent for himself.