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Chat Transcript

22 Nov - 10:00 hrs

Sunil Venkateshwara | Team Lead Research, Sulekha Property

 

Should one invest in property now?

Chat Transcript

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peeyusharas: Hi Sunil, what is the prediction on property prices in pune baner/balewadi area. is correction on the charts? when is the right time to buy? Thanks
Sunil Venkateshwara: The average residential price in Baner ranges from Rs. 6000 to Rs. 7000/- per sq ft. The ROI in this area is 8 to 15%. The average residential price in Balewadi ranges from Rs 5000 to Rs. 6000/- per sq ft. The ROI in this area is 10 to 13%. At present the properties rates are steady but there is no huge correction in prices and this is the right time to buy a property so you can get good return in future.
guest: Hi Mr. Sunil, how about property prices in coimbatore. should one invest now ?
Sunil Venkateshwara: Coimbatore also known as Kovai, is a city in India. It is the second largest city and urban agglomeration in the Indian state of Tamil Nadu, It is one of the fastest growing tier-II cities in The jump in land, materials and labour costs has pushed property prices up by 25%-30% per cent and slowed the growth of the real estate sector in Coimbatore in the last two years. Property developers in the city believe that if the real estate sector has to grow at pace similar to that of Chennai, which despite the global economic slowdown, registered a steady growth quarter after quarter, as per the residential price index brought out by the National Housing Bank, the government has to develop infrastructure facilities, promote industries and improve water bodies. However, land prices have increased in the outskirts in the past two years. The cost of material and labour is also on the rise. This has seriously affected the middle income group, which is the major segment that invests money to buy property. Property developers have been forced to pass the cost increase burden on the people, which have slowed down the market. Flats that were sold for Rs 4500 per sq. ft. in Ramnagar area are now being sold for Rs 6500 per sq. ft. Similarly, in areas like Vilankurichi, Thondamuthur, Vadavalli, which are outside the city, costs have moved from Rs 2300 per sq. ft. to Rs 3500 and more.
guest: Hi Sunil, Please let us reality market in Pune. It`s been going round that prices are due for a correction. What`s your opinion ?
Sunil Venkateshwara: Pune, the eighth largest city in the country, has recently seen a huge run up in prices, rising almost 35 percent since 2011 with the average price in the city rising from Rs 3800 to Rs 5100 per square feet. Prices have now stabilized at these levels. While Pune is performing better than other cities like Mumbai and the National Capital Region, it would be incorrect to say it is totally isolated from the overall realty slowdown. The Pune market continues to be much more affordable than many parts of the country. Pune`s economic drivers; a growing IT hub and a big manufacturing base will keep the prices going.
guest: hello Sir , how do u see the Thane Property market for long term ?
Sunil Venkateshwara: If one looks at the suburbs of both Eastern and Western Suburbs, the prices in both Goregaon Borivali belt and Ghatkopar Mulund belt are both touching upwards of Rs.11000/- PSF. The next alternative for people in Western Suburbs is the Dahisar Mira Road belt where for whatever reasons, the NRI, Investors and executives from the corporate sector hesitate to come in. Thane today enjoys presence of Top Developers, prices in the range of 6500 to 12000 PSF, enough choice in the market, a little less buzzing than Mumbai, better infrastructure etc. These just may be a few factors, but for the home buyer, the quality of life is better in Thane. With the Freeway opening up and hopefully, it will settle down in the next few months with its exits, Thane would see improved connectivity also.
guest: Sir, Is daughter has equal rights as son in forefather property
Sunil Venkateshwara: Yes the Daughter will also have equal rights.
guest: Hi Sunil, which location in chennai will have better growth going forward for investment.
Sunil Venkateshwara: Old Mahabalipuram Road are best investment area for New Property as well resale Property because property growth has been increase for 7 %. Though most buyers purchase houses with the idea of settling down in them, concerns over the rates of appreciation continue to be a deciding factor in making the final choice. Builder痴 project that property in OMR will appreciate by almost 25-30% in the next one year. The current average apartment痴 price in Old Mahabalipuram Road is approximately Rs.4100 per sq ft. The highest price is Rs 6500 per sq ft and the lowest price is approximately Rs.3200 per sq ft. The ROI in this area stands at 6 to 12 % and the increase in property prices over the past two years is 7 %. The current average Rentals price in Old Mahabalipuram Road is approximately Rs. 7 to Rs. 14 per sq ft.
guest: Sir, how SRA property can be transfer to new buyer name. Legally how much time its take to get transfered
Sunil Venkateshwara: No transfer of SRA property for a minimum of first 10 years.
guest: Hi , Where is the best investment location today around Mumbai and are there any recommended projects?
Sunil Venkateshwara: Ulwe in Mumbai has emerged as the country`s top destination for investment in the residential real estate where housing prices are expected to jump by 145 per cent over the next five years, Wadala and Chembur in Mumbai are at second and third positions in the list of 13-top residential destinations from an investment point of view. With property options ranging from Rs 3,200 per sq ft to Rs 15,000 per sq ft and price appreciation in the range of 91 per cent to 145 per cent, residential real estate will emerge as promising asset class for the next five years. The western region has the highest number of promising residential investment options with three destinations from Mumbai and four destinations f The speedy growth of infrastructure, Santacruz-Chembur link road, upcoming monorail connectivity, well connected to Navi Mumbai via Sion-Panvel highway and Thane via eastern express Highway and development in commercial zones has resulted into an upward trend in Chembur. Also, Chembur痴 close proximity to Bandra-Kurla Complex and Navi Mumbai is one of the key highlights of the location. According to Ajmera, connectivity, appreciation and affordability as compared to nearby locations woo buyers to this area. Luxurious amenities within the project also play a prominent role in attracting buyers. Ajmera adds, 展adala is a place with large spaces, surrounded by lush foliage and a peaceful ambience. The high level of infrastructure development around Wadala, which will shoot up property prices in the near future, is one reason why buyers are aspiring to invest in Wadala.
guest: Is it a good time to buy in Chennai?.. Is it good to buy land or apartment?
Sunil Venkateshwara: The market has been a little slow in the last three quarters. However, unlike some other cities, transactions have not stopped. This is primarily due to the robust end-user demand. In fact, there is no unsold inventory within a radius of five-six km from the city centre. Most of the unsold inventory is present along the OMR (Old Mahabalipuram Road), GST (Grand Southern Trunk) and Oragadam and the resultant over supply is responsible for the slowdown in the market. Cost of the property Normally cost of land is same/less than cost of flat in the same location. If you are planning to buy a land and then construct a house, then you should have a significantly higher budget. Here the only point is affordability and income level. Location of the property Where is the land/flat located? This is one of the most important aspects which you should be careful. Cost of land varies based on the location/proximity to centre/important locality of the location. The same point comes again, affordability and income level. Security/Safety Measures Flat is always better than an independent house when it comes to Security/Safety. Normally flats have security guards and a robust security system in place. Apart from that there are other families who stay next door. However one can install security system in individual houses but the cost will be significantly higher ROI (Return on investment) A very popular phrase in the real estate industry Land Price increases, House value depreciates and flat value diminishes. An investment in land is definitely better than a flat.
guest: I bought a unapproved flat in chennai 6 yrs back. Are there any chances of getting approval?
Sunil Venkateshwara: No, you cannot get the approval
moderator: This chat has now ended. Thank you Mr. Venkateshwara for sharing your views. Thank you to all the participants for posting their queries.
moderator: The transcript of today`s chat will be available on moneycontrol.com soon. If you have any suggestions about this chat you can send an e-mail to feedback@moneycontrol.com
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