Chat Transcript

30 Apr - 12:00 hrs

Anuj Puri | Chairman & Country Head, Jones Lang LaSalle India

Prime properties in the making

Chat Transcript

guest: 1.Apt Prices, esp in South Chennai have shot thro the Skies, in the last 6 yrs, where as bangalore has barely expeiencd 70 0/0 up. Reasons? To the best of my knowledge, only a second SUNAMI WARNING was the most notable event in the last 6 yrs??!!

Anuj Puri: South Chennai has very limited land parcels and therefore a very thin supply line. The result is a pile up of demand which leads to higher property rates.

kishen90: do we need govt. to increase FSi in land scarce city like mumbai where hardly any greenland is available? if so then by what extent the FSI be allowed?

Anuj Puri: FSI cannot be increased arbitrarily or only keeping in mind the concerns of the real estate sector. Mumbai has ecologically sensitive zones which need to be preserved for the city to retain some kind of viability. Also, increasing FSI without looking at support infrastructure and safety norms in tall buildings would be irresponsible. Each location needs to be evaluated against these and other concerns before FSI can be raised

guest: from current levels whats is the realistic returns one can expect in real estate from a long term perspective - 20- 25 years. I already have a home in mumbai and looking to invest in a second home to build towards my retirement corpus .. advise plz

Anuj Puri: The year-on-year returns on residential real estate in terms of capital values are between 10-12% and may be higher, depending on exact location and flat size. Investment in a second home makes sense if you have the financial wherewithal - I would strongly suggest Navi Mumbai, particularly Ulwe and Kalamboli

a033208: What about Navkar Builders project in NAIGAON(E) THANE.

Anuj Puri: Apologies, sir - I cannot offer comments on individual developers. Naigaon East is a good location if you choose your investment wisely and can stay invested for at least 5-7 years

guest: hi, What is your view on the current development in Ahmedabad, in the outskirts like Jagatpur; view going forward 5 years

Anuj Puri: Currently, Ahmedabad as an investment destination works better as you get closer to the city centre. However, it is a growing city whose expansion is being supported by good infrastructure. An investment horizon of 5-7 years is ideal for out-lying areas

guest: what is future for faridabad NAHAR PAR area..? is it good time for investment in faridabad flat ? and what about KLJ BUILDER ?

Anuj Puri: Here is an excellent study on Neharpar by Santhosh Kumar. It should provide you with all the necessary information. Apologies, I cannot comment on individual developers http://www.joneslanglasalleblog.com/realestatecompass/real-estate/2012/11/delhi-ncr-real-estate-neharpar/

guest: What should be the 10 year return in gurgaon near sohna road on npr surinder Jain

Anuj Puri: Sohna Road was one of the biggest success stories in Delhi NCR last year. It has all the right demand drivers and it will fetch steady returns of at least 12-14% y-o-y

vinitbhamare: I already have diversified portfolio and own home. I have 10Lac cash in hand. Where should I invest now? Should I invest in second home with some loan or should I invest this into equity or else?

Anuj Puri: Whether or not you can invest in a second home would also depend on your current income, how long before you retire and which cities and micro-locations you are considering. If you cannot service a second home loan for a long enough period, it may be wiser to invest in another instrument

guest: Sir a 2 BHK flat is costing around 1.25 - 1.5Cr in malad east. how do u think an end user will afford the same bcoz i have a salary of 1.3L even i can not affford then do u still think prices are gonna appreciate more... unfortunately i have to look at something like Mira road where my EMI will be less and more travel time...

Anuj Puri: I completely sympathize with your predicament, sir. It is the same story all over Mumbai - even people with more than decent salaries cannot afford to buy their own homes in locations like Malad. No, prices are unlikely to drop there

guest: Sir, why is every builder is constructing premium apartments as well as 2/3 BHk eventhough realty prices have skyrocketed. Why not builders are constructing studio apartments and 1BHK

Anuj Puri: Because the profit margins for smaller configurations are much lower

guest: Hi what is your view on Greater Noida or Noida Ext.for 2BHK house as investement

Anuj Puri: The locations are excellent, but you need to ensure that you are buying into a completed or almost-completed project. There is a very high incidence of delivery delays in this part of NCR.

guest: How much one should pay Rs.per Sq. foot for the properties residential (old buildings) located at sion/wadala/matunga

Anuj Puri: Anything between 15000-25000, depending on exact location, age of building and facilities such as parking, lifts with power backup, etc.

guest: PROSPECT OF INVESTMENT ON JAIPUR SIKAR HIGHWAY IN LAND AND FLATS AND RETURN EXPECTED

Anuj Puri: Depends on how close it is to either Jaipur or Jodhpur. There is a lot of interest from the tourism industry in these historical places. A plot of sufficient dimensions close enough to either of the two cities could be sold to a hotel chain a few years down the line. But there is currently very little interest from the residential sector, unless you are very close to one of the cities

tikku.kushwaha: what is the future of investment made in Vasai (east and west )?

Anuj Puri: Between 8-10% per annum, but it can be higher if you invest into a property near to the railway stations or one of the local workplace hubs

guest: Anuj just 1 more thing, if not malad East where should i look at, Mira road, Thane or New Bombay. my off will always remain in fort or worli area or Western regaion and age is in my side since i m sub 30... Just view on these areas would be highly appreciable.... Thanks

Anuj Puri: From a connectivity point of view, both Thane and Vashi in Navi Mumbai would make sense for you. Personally, I would opt for Vashi

rakeshpoduval19: Sir, Please let me know future at Pisoli-Undri area at Pune. Looking to buy a flat in Kingston Elysia.

Anuj Puri: Undri is seeing a fair amount of activity and prices are rising steadily. However, part of it still falls under the gram panchayat and one has to be careful about checking the water availability in this region. Pisoli is still in the nascent stages of development

guest: sir,do you see any chance of decline in property prices in mumbai

Anuj Puri: Not in the so-called `mid-income` segment. Demand is too high. There may be a correction in premium projects soon

guest: Sir, is it worth buying properties in old buildings which are redevelopable instead of newly constructed properties

Anuj Puri: It can make a lot of sense, but only if one can ascertain that the building will indeed be redeveloped in the foreseeable future. Often, housing societies oppose this process and this can cause your investment to get stuck in a non-performer

Anuj Puri: Thank you, all. It has been a pleasure

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