Tag Archives: Best housing projects in India

Pune demands ready to move properties

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Bottom Line: Pune homebuyers, like rest of India, now only trust ready to move properties.

Gera Song of Joy, Gera Properties, Pune real estate market, India real estate news, Best housing projects in India, Indian property news, Track2RealtyRukhsana Khan wants to buy a house in Ambegaon Budruk of Pune. Her property search has led to a relatively better priced property at Rs. 4600 per sq feet that is expected to be delivered in the next couple of years. A ready to move in flat would cost her a price of Rs. 5900 per sq feet.

This difference of Rs. 1300 per sq feet means that she has to bear an additional Rs. 14,30,000 for an 1100 square feet of apartment. This premium for a ready apartment is too high a price for this government employee. Yet, she is determined go a ready to move property only.

“If I could not arrange for the finances, I will better wait for a few more months than go for an under construction apartment. The execution risk is too high nowadays and often it is not just the fault of the developers but some policy issues also delay the project timelines for a few years,” says Rukhsana.

She is not alone in having apprehension with the under construction property. As per a survey by Track2Realty, nearly two third of prospective homebuyers in the city, 62 per cent to be precise, prefer ready to move property. Though the aspiration for a ready flat is less in the Pune city when compared to all India figure of 78 per cent going for ready apartment, it is still a high number of homebuyers in Pune who are apprehensive with under construction property.

The inventory overhang might be lesser in Pune, just 13 months, compared to other cities, this nevertheless raises a question as to why the homebuyers are shying away from under construction properties in the city. More importantly, what are developers doing to end this crisis of confidence? Developers have their own reasons to believe that the data only shows half the truth.

Parth Mehta, Managing Director of Paradigm Realty contests it saying that in general, homebuyers have become well informed and scout for properties which are in advance stages of construction with a fear of double wham my incase of delayed possession by builder leading to extended EMI as well as rents on tenanted houses for personal use.

“Developers are making all efforts to comfort the homebuyers to gain their trust. They are nowadays coming out with subvention schemes to attract end users with minimal down payments, as low as 5 per cent of agreement value at booking and maximum during middle stage of construction and possession,” says Mehta.

Arvind Jain, Managing Director, Pride Group says that the National Housing Bank (NHB) mentioned Pune’s inventory of unsold residential stock as 13 months worth, which is very low when compared to other cities. This is because consumption of residential real estate in Pune continued to be healthy even during the lowest point of the national real estate slowdown. There can be many reasons for unsold inventory – muted market sentiment, a lot of supply being in the early stages of construction, housing projects being constructed in the wrong locations, and over-pricing.

“In Pune, some supply is undoubtedly in locations which have not picked up because of lack of infrastructure, and there are also quite a few projects where developers have been too adventurous in their pricing. The fact that Pune continues to perform better than other cities on appreciation indicates that most investors have navigated away from the non-lucrative propositions,” says Jain.

Kishor Pate, CMD, Amit Enterprises Housing reminds it is pertinent to note that many of the unsold projects in Pune are the result of deficient planning on the part of the developers. They have chosen flawed or hopelessly futuristic locations where people are not interested in moving, and/or have included high-end amenities that drive up the overall cost beyond what buyers are willing to pay.

“The decreased buoyancy in the housing market is also responsible. Many buyers are indecisive since they expect a correction in prices. However, it has become evident that Pune will not see a correction, so these buyers are now coming into the market with firm purchase decisions,” says Pate.

It is true that the homebuyers are being circumspect about investing in under construction projects. But equally true is the fact that they are showing confidence in projects by established developers with a strong reputation for delivery. The data that is lending credence to the unsold inventory is mostly in the non-descript locations where the lack of infrastructure has not let the potential of the market transform into the performance.

Developers, on their part, maintain that it is incorrect to say that buyers are shying away from under construction projects in general. They are shying away from developers who they have no reason to trust and with those developers who have not built up a good track record.

They are also shying away from projects being constructed in locations with no support infrastructure which are likely to cause issues in terms of basic utilities supply, or where the developer has not obtained all the necessary construction permits. There is very good demand for under construction projects by reputed developers who are also showing satisfactory construction progress on the ground.

The ground reality is that given the choice any homebuyer will go for a ready to move property. But then the ready apartment has its own cost of premium. This is not something that every middle class homebuyer would be in a position to afford.

Under construction projects have certain other advantages than pricing. A homebuyer can get it customized as per his needs. But since the execution risk is high there people generally do not go for it. Having said this, the track record of Pune developers vis-à-vis maintaining the timelines and being true to the commitment is much better than many other markets in the Indian cities.

Gera Song of Joy gets B+ Rating

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Track2Realty Investment Magnet Report 2015 picks up 100 best housing projects across India.

Gera Song of Joy, Gera Properties, Pune real estate market, India real estate news, Best housing projects in India, Indian property news, Track2RealtyLocation: Kharadi, Pune

Project type: 2 & 3 BHK Apartments

Price: Rs. 77 Lakh-1.35 Crore

Project execution lifecycle: April 2014-June 2017

Gera Song of Joy is the kind of project that would naturally attract the fancy of the investors because more than offering an apartment it offers a solution to the practical problems of young urban homebuyers.

It is a child-centric housing project and the developer has conceptualised it with the realisation that most of the working couples in the cities have just one kid and they need child friendliness features in the apartment.

It is not just about school in the vicinity, but also playground, recreational activities and the overall safety & security of the child. Song of Joy is the fourth project at Gera’s GreensVille, after GardenVillas, SkyVillas and Trinity Towers, which are spread over 40-acre campus at the fast developing Kharadi on the outskirts of Pune.

Located over three-acre green campus, Song of Joy would comprise of a total of 240 homes spread over four towers of 15 floors each. The project promises to have kids amenities, health & sports amenities, security amenities, convenience amenities, and leisure amenities.

The developer claims to rope in best of academic and vocational institutions within the project. The social infrastructure has not shaped up well in this part but   location of this project offers decent lifestyle and has access to workplaces & super markets. The spread of IT/ITeS promises to make this location a job magnet in future.

Track2Realty Rating: B+

  • Location & Aspiration: 6/10
  • Physical Infrastructure: 7/10
  • Social Infrastructure: 6/10
  • Appreciation Potential: 8/10
  • Competitive Advantage: 8/10
  • Rental Potential: 5/10
  • Launch2Sales Ratio: 6/10
  • Construction Quality/Timelines: 7/10
  • Livability Index: 7/10
  • ROI Cycle: 6/10

Track2Realty picks up top 100 projects of 2015

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Track2Realty Investment Magnet Report 2015, Track2Media Research Pvt Ltd, Indian property investment guide, Best housing projects in India, Top residential project in India, NRI investment choice, Indian real estate market, India property marketA house hunt has always been tedious and challenging for anyone in this country. Imagine the travails of finding 100 apartments to live in. Yes! This has been the thought process when the editorial team of Track2Realty embarked on a journey to find 100 best housing projects relevant for investment in the year ahead.

Like anyone else on a house hunt, we were also carried with mixed dose of emotion and rationality.  It has been an emotional journey as we had put ourselves into the shoes of an average investor. Of course, the journalistic rationality was always there to be objective.

We started the screening process with a carefully researched list of 500 projects. It was further narrowed down to 300 and then we did realise that an objective analysis would be heavily tilted towards a few best performing markets at this point of time. That would have probably defeated the very purpose of this study, as we wanted to come out with a pan-India report.

Therefore, an element of editorial discretion, which can be called subjectivity, was applied once the list was narrowed down to 200 housing projects. After a series of deliberations it was decided that in order to give a pan-India perspective it is imperative to put a cap over the number of projects that can be featured from one given market and projects of one particular developer. Failing this, the report might have given the impression of our endorsement to a few best performing developers at the moment.

Thereafter, it has been a challenge to define the scope of study. Being the first journalistic initiative of this kind, we did not have any precedence to look into. After rounds of discussion we could finally develop ten metrics that would be benchmark of evaluation. These are:

  • Location & Aspiration
  • Physical Infrastructure
  • Social Infrastructure
  • Appreciation Potential
  • Competitive Advantage
  • Rental Potential
  • Launch2Sales Ratio
  • Construction Quality/Timelines
  • Livability Index
  • ROI Cycle

Even though we practically covered all the aspects that a prospective investor or homebuyer would look for, we resisted the selection of top 100 at this point in an organic manner. We were conscious of the fact that statistics cannot be the only indicator. Reason being that an investment is a complex process in India’s housing market where the transparency is lacking and absence of reliable data adds to the confusion.

We rather felt that the ten metrics may or may not do justice to the actual performance of the project. Raw data can also be misleading when it comes to look & feel and usage of the high value product like a house.

For example, while launch2sales ratio is a metrics where we weighed lesser to the projects that are weathering slow sales, we have to be equally conscious of the fact that very high sales ratio to the extent of project being completely sold off would be of no interest to prospective investors. We are hence not claiming that our list of top 100 projects is top 100 at large. What we maintain is that in our study these are the top 100 projects worth investing as of now.

Similarly, since we are addressing more to the institutional investors, HNIs, NRIs and other financial institutions, our tilt has been slightly more towards the premium and high-end projects. It has been more so in those markets where the high-end investors are looking forward to invest for luxury living. In some of the performing Tier II cities, we have lowered this benchmark to weigh higher to affordable housing projects as well.

Another point of contention for us had been the challenge to deal with the pre-launched projects that are selling at a brisk pace. As a thumb rule, we decided to only consider those projects in pre-launch stage where the reliability of the developer has been pretty high; the kind of market credibility that manages to evoke confidence among investors’ to invest.

We have otherwise mostly focused on the projects that are close to completion, and have been witness to the first round of appreciation and high performance. The idea obviously has been to clear the clutter around execution risk.

It has indeed been a fascinating journey for our researchers. Never before in the history of Indian real estate such an analysis of housing market was done like this. Both the developers and the realty media are known to mutually appreciate each other with marketing supplements. Track2Realty has breached that convention and our top pick is purely on editorial merit; something that is now quite accepted (even though critically) by the sector.

Needless to say, Track2Realty does not look at the developers as their target readers. We are rather focused to have our readership base with the institutional investors, NRIs, HNIs, financial institutions etc. who are looking for reliable data and study on the Indian housing market. This study of 100 top projects is hence aimed at coming out with authentic housing market report in an information-starved sector.

Series of top 100 projects’ review to continue…

Track2Realty releases Investment Magnet Report 2015

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Track2Realty Investment Magnet Report 2015, Track2Media Research Pvt Ltd, Indian property investment guide, Best housing projects in India, Top residential project in India, NRI investment choice, Indian real estate market, India property market In an opaque real estate market where house hunt has been a travail and challenging for most of the Indians, Track2Realty takes up the challenge of finding not one but 100 most promising housing projects in the country. From Bangalore to Chennai, Mumbai to Ahmedabad, and Gurgaon to Kasauli; it has been a  worm’s-eye view of thousands of housing projects to find 100 best that could stand out as the investment magnet in this first-of-its-kind study.

Never before in the history of Indian real estate, there has been a journalistic endeavor like this to identify 100 most promising housing projects in the country worth investment. This strictly editorial initiative has indeed been a challenge in an information-starved sector where the reliable data is a critical missing link. As a matter of fact, various property listing websites have contradictory and misleading data in many cases vis-à-vis the same project. That, however, only added to the thrill of exploring an unexplored zone of Indian housing market.

Track2Realty Investment Magnet Report 2015 is a result of this 5-months long research and on-ground survey of the Indian property market. The 100 most promising residential projects have been picked up on the defined metrics that we developed to evaluate the respective projects. These metrics are Location & Aspiration, Physical Infrastructure, Social Infrastructure, Appreciation Potential, Competitive Advantage, Rental Potential, Launch2Sales Ratio, Construction Quality/Timelines, Livability Index and ROI Cycle.

Many of the findings have been on the expected lines. For example, Bangalore and Mumbai lead the pack with 15 projects each worth investment; foll0wed by Chennai and Gurgaon with 11 projects each; and six projects from Pune market have figured into top 100. Five projects have been picked up from Hyderabad; and four each from Coimbatore, Nagpur, Kolkata, Noida and Chandigarh Tri-city.

In terms of the performance of the respective developers, South Indian companies like Prestige Constructions, Sobha Ltd and Purvankara Projects have registered their investment worthiness remarkably well. Developers like Embassy Group, Nitesh Estates and Brigade Group also rank high in terms of investment worthiness with multiple projects.

Among the corporate conglomerates, projects by Mahindra Lifespaces have been surprisingly found to be among the best investment magnets, along with Tata Housing and Godrej Properties. The largest real estate company by market capitalisation, DLF, still stands among the best investment magnet with some if its projects, though their investment worthiness by and large has suffered due to legal issues with some of their key projects.

Some other emerging brands, like Omkar Realtors & Developers in Mumbai, ATS Group in Delhi-NCR, IREO and Shriram Properties are promising for the future in terms of delivering projects that could be investment magnet. Another emerging brand SARE Homes appears to be scaling up fast on the aspirational property landscape of India.

The companies that are consciously working on their brand positioning have succeeded to break into this ‘Elite 100’. Gurgaon-based Ambience Group can be cited as one such company that figures into top league with not just one but two of their projects. Mumbai-based Nahar Group with one of their iconic projects ‘Nahar Tower of Adyar’ also falls into this space. Similarly, Chennai-based company True Value Homes joins the league with the project TVH Quadrant.

Few of the leading brands, on the other hand, like Mumbai-based Lodha Group and Obroi Realty do not figure very high due to limited number of projects and also having less number of projects where investment at this point of time would give sizeable ROI. But the most glaring omission has been that of K Raheja Corp from this list of top 100.

The dark horses in this study have been those who are still not established brands in real estate, and yet have been able to conceptualise one project that could be their potential brand driver. Some of the names that fall into this space are Paras Quartier, Casa Grande Amber, ABA Corp Cleo County, Total Environment Pursuit of a Radical Rhapsody, SPAS Gardens of Delight and EON Homes.

The 300-page Track2Realty Investment Magnet Report 2015 has been released and the copies are available for sale. Interested parties can book their orders with marketing@track2media.com