MHADA to undertake digital mapping, survey of its land parcels across Maharashtra

 The Maharashtra Housing & Area Development Authority (MHADA) has decided to undertake mapping and survey of all the land parcels under its control in housing boards of Mumbai and all other cities controlled by its divisional boards across the state through advanced computer technology.

The housing board has already started the work and is currently in advanced stages of developing the Geographical Information System (GIS) driven mapping and Robotic Process Automation (RAP) systems for the same.

With this digitisation and mapping of its land parcels across the state, MHADA will be able to get information about the development potential on the said land parcel and layout, any illegal encroachment on the plot and any ot .

MHADA plans to identify existing development rules and schemes applicable to the Mumbai board and other boards as well with this information. The authority will review how these development and redevelopment schemes, rules and acts can be revised or amended that can help it in effective planning and execution of any new development scheme on these land parcels

The authority has roped in RAH Infotech CE Info Systems and Replete Business Solutions to study and provide a consolidated report on land available with MHADA across the boards in the next six months. To keep a close tab on the GIS mapping and RPA system work, the authority has set up a high-level committee of the Mumbai board of MHADA and other board's working officers.

In addition to this, MHADA Mumbai headquarters has informed all its divisional boards including Pune, Konkan and Nashik, and housing societies that are governed by them among others to cooperate with these agencies for the collection of data as mandated.

Last year, the government of Maharashtra’s town planning authority the City and Industrial Development Corporation (CIDCO) started geo-tagging land parcels in Navi Mumbai under its various plot sale schemes.

The move, apart from helping applicants, will also be an additional step towards efficient digitisation of land records. With this Navi Mumbai has become one of the first big cities in the country to initiate the process of the digitisation of land records by the government administration.

Digitisation of land records and such efforts towards the same assume significance in the backdrop of unclear ownership and title. Most land parcels in India are subject to legal disputes and the issue might take Indian courts a century to resolve at their current rate of progress. Lack of clarity on ownership and title makes it immensely difficult to buy land for retail and housing developments.

Rationalising charges for conversion of leasehold into freehold properties in Mumbai can unlock huge value: Report

 Leasehold to freehold conversion charges as high as 60-70% of property value in Mumbai; lowering of charges can spur redevelopment of properties in Mumbai, unlock asset value.

The Maharashtra government should rationalise state charges levied for converting leasehold properties in Mumbai into freehold. This will help in unlocking value of housing, commercial and industrial assets in the city and should be a part of the development agenda that the government has undertaken, India Sotheby’s International Realty (ISIR) has said in its whitepaper titled 'Why Leasehold Property is shackling Mumbai's Real Estate Potential'.

The consultant, in its report, has pointed out that the conversion charges to change property rights from leasehold into freehold are as high as 60-70 per cent of the property value. The amount is typically paid by sellers. Required payment of such a high rate to convert them is often deferred by the landowners to the next generation. This stalls development and actually lowers state revenues.

"Mumbai's real estate market is not only the most expensive in India, it is also among the top few real estate markets that command such high capital values in the world. In fact, in some localities, the per square feet rate has crossed the Rs 1 lakh figure,” said Samir Saran, managing partner, ISIR.

One of the reasons behind such an exorbitant pricing is government fees and charges associated with real estate, Saran said. "It is surprising that subsequent governments have shied away from unlocking the true potential of Mumbai’s real estate by easing the leasehold to freehold norms."

"We believe some serious rethinking is required to create a more robust and equitable housing market in Mumbai," he felt.

The whitepaper noted that property ownership in Mumbai is largely in the leasehold format. Residential, commercial and industrial land have all been leased on varying tenures. As the lease periods come up for renewal or are at the tail end of the lease, the current lessors, mostly government agencies, demand conversion charges for change to freehold status.

"Today, sellers are required to either take permission from the lessor authorities for changes in individual ownership or pay conversion charges of 60-70 per cent," the paper said.

There are nine types of leases available in Mumbai today. The whitepaper is focussed on collector’s land given on lease between 1950s and 1980s for development of housing societies and for commercial and industrial development. These are mostly located in central and western suburb localities such as Bandra, Versova and Chembur.

Besides high conversion charges, the whitepaper has elaborated on other practical problems in undertaking conversion of leasehold to freehold properties. The quality of some assets of over 30-40 years has deteriorated and these buildings are in need of redevelopment.

In order to unlock value of properties in Mumbai, ISIR has suggested that the Maharashtra government should come up with a long-term policy initiative to facilitate property owners who wish to convert their assets from leasehold to freehold.

The consultant has urged that the conversion charges should be significantly lowered. And the reduced rates should be applicable for a longer period so that everyone gets decent time to complete the entire process.

The conversion rates and FAR (floor area ratio) should be attractive enough for land owners and developers to go for redevelopment. It also pitched for liberalising stringent societal norms (like castes and reservation) to facilitate redevelopment. The payment of conversion charges should be allowed in instalments as such large sums of money are difficult for pensioner allottees or even for builders.

"A system of hefty fines and even cancellation of licences can be put in place as disincentives to a few unscrupulous developers who queer the pitch for those with serious, long-term intent to stay in the redevelopment market," the whitepaper said.

Housing sales in Jan-Jun at nine-year high in top eight cities: Report

 Knight Frank India highlighted that the residential sector has recorded a 9-year high sales volume in January-June 2022. The previous high was recorded in the first half of 2013, when sales were at 1,85,577 units.

NEW DELHI: Housing sales rose 60 per cent annually in January-June this year across eight major cities at 1,58,705 units, the highest half-yearly demand in nine years, mainly driven by lower base effect as well as mortgage rates, according to Knight Frank India.

Housing sales stood at 99,416 units in the first six months of 2021, the consultant said in its 17th edition of half-yearly report 'India Real Estate: Residential and Office Market H1 2022', which was released on Wednesday through a webinar.

Knight Frank India highlighted that the residential sector has recorded a 9-year high sales volume in January-June 2022. The previous high was recorded in the first half of 2013, when sales were at 1,85,577 units.

The consultant has listed several factors for the increase in housing sales such as homebuyers' need to upgrade primary lifestyle, low interest rates on home loans and comparatively low home prices to the pre-pandemic levels.

The renewed need for home ownership sparked by the COVID pandemic is also driving sales.

Housing prices increased across all markets in the range of 3-9 per cent year-on-year (YoY). This also marks H1 2022 as a period in which prices have grown in YoY terms across all markets for the first time since the second half of 2015.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, "Home buying has witnessed a strong rebound since the advent of the pandemic and continues despite inflationary concerns in the economy."

Giving the breakup of housing sales city-wise, Knight Frank said that housing sales in Mumbai rose 55 per cent to 44,200 units in January-June 2022, from 28,607 units in the year-ago period.

For the period under review (H1 2022 vs H1 2021), Delhi-NCR saw more than two-fold jump in sales to 29,101 units from 11,474 units, while sales of residential properties in Bengaluru grew by 80 per cent to 26,677 units from 14,812 units.

As per the report, Pune witnessed a 25 per cent rise in sales to 21,797 units, from 17,474 units, whereas housing sales in Chennai rose 21 per cent to 6,951 units from 5,751 units.

Hyderabad saw 23 per cent growth in sales to 14,693 units from 11,974 units, while Kolkata witnessed a 39 per cent rise in sales to 7,090 units from 5,115 units.

During January-June this year, housing sales in Ahmedabad rose 95 per cent to 8,197 units, from 4,208 units in the corresponding period of the previous year.

On the supply side, the new launches increased 56 per cent to 1,60,806 units, from 80,566 units during the period under review.

Strong growth in sales velocity, has led to a modest decline in unsold inventory to 4,40,117 units in H1 2022.

Moreover, the strong uptick in sales also brought the quarters-to-sell (QTS) level down to 7.8 quarters from 10.9 quarters in the first six months of 2021. This means that builders need nearly 8 quarters to sell their unsold inventories at the current sales velocity.

Talking about office market, Knight Frank India mentioned that leasing jumped over two-fold to 25.3 million square feet in January-June this year, from 12.25 million square feet in the year-ago period, indicating the potential of the market on the back of a waning pandemic and the promise of a sustained economic recovery.

"The robust performance delivered by the office market during H1 2022 has set the tone for 2022. Physical occupancy levels are rising as more companies want their employees to return to office," Baijal said.

At the same time, he said hiring across many sectors has picked up as India's economic growth continues. "With the current pace of leasing, we expect the year 2022 to see leasing volumes close to the peak of 2019 and exceed in the next year," Baijal added.

He noted that the focus amongst occupiers for this year will remain on flexibility, in leasing terms to allow real-time expansion and contractions indicating a strong year for managed office spaces.

New completions of office space also picked up significantly with 24.1 million square feet getting delivered in H1 2022, a 61 per cent growth annually.

On rental value, Bengaluru and Pune office markets recorded maximum annual increase in rents at 13 per cent and 8 per cent, respectively, mostly due to higher demand and lack of Grade A space.

Hyderabad, Mumbai and NCR also witnessed moderate increase in their rental values, whereas the rental values in Chennai, Ahmedabad and Kolkata remained stable.

Why You Should Buy A Home From A Reputed Real Estate Developer

 Buying a house is an important decision which involves looking at many factors. One of these factors is the brand you choose to buy a house from. The moment you start looking out for properties, you can first see what these reputed brands are offering. A reputed real estate developer can also serve as a measure of the value of the property. This developer has all the right credentials, permission for construction and also makes properties in accordance with the law.

Property sites in India are becoming expensive by the day. This makes it even more important to choose the right real estate developer to buy apartments suiting your needs. Here we share a few reasons why you should go for a reputed real estate developer to buy your first house.

1. TIMELY COMPLETION

After the RERA act, it has become the prime responsibility of the for real estate developers in India to finish their projects on time. Reputed developers make sure that their customer receives the possession of their flats on time. This gives you the confidence that you will have the key to your house on time.

2. NO TAMPERING WITH RERA NORMS

A reputed will be the one who is registered under RERA and makes sure the buyers know about this. You should check this one factor before choosing any developer. Real estate business in India is now highly regulated after the introduction of the RERA norms. This means that the developer has to follow all the rules and charge you according to the RERA norms. There is no place for any foul play.

3. MODERN AMENITIES

Many reputed developers have built their brands on the kind of amenities their housing projects offer. These developers make sure that the luxury houses built by them have state of the art amenities. Amenities offered can be proper parking space, 24/7 security, clubhouse, swimming pool, jogging track, amphitheater etc. A reputed developer can easily gauge the need of the homebuyer. This is reflected in their projects.

4. HIGH ROI

The brand you choose can work in your favor if you ever plan to sell or rent your property. These kind of projects are usually in areas which are popular, have good connectivity and also a secure and upmarket neighborhood. Hence, this makes your return on investment a higher one.

5. EASY HOME LOAN SANCTIONS

When you choose a reputed developer and then go to a bank to ask for a loan, then there are higher chances that your loan might get sanctioned. The banks have a certain amount of trust for reputed brand and buyers who invest in their properties.

6. SECURITY

A famous real estate developer will have good security features in their projects. If the home buyer does not feel safe about the property, then he/she will not choose to invest in it.

Investing in a house is also investing in a brand. Make it a priority to look for reputed brands to buy your first home. Ask around, check review online, contact the brands for more information, visit and see their properties for sale etc. these are a few things which can help you decide on which developer to invest in.

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Must-Know Facts About Possession Letter And Occupancy Certificate

 Narayan Kumar and his wife recently purchased a 2BHK apartment at Marathahalli, in Bengaluru. The proud owners of the new home were unaware of the trouble that was to come. As the builder did not provide them with the Occupancy Certificate (OC), the family faced issues in getting access to civic amenities.

Many homebuyers, particularly first-timers are not aware of the occupancy certificate and often mistake it to be the same as the possession letter. There are several documents, which are required during the purchase of a property and obtaining them could prove to be a tedious process. The OC is a crucial document, which must be sought and buyers have the right to take legal action against the developer if the same is not given to them.

Here's the difference you need to know between a Possession Letter and an Occupancy Certificate:

POSSESSION LETTER

The Possession Letter is issued by the developer in favour of the buyer, stating the date of possession of the property. The original copy of this document needs to be produced for securing a home loan. A Possession Letter alone would not suffice for legal possession of the property, unless the OC has been obtained.

OCCUPANCY/COMPLETION CERTIFICATE

Certificate of Occupancy or Completion Certificate is a document which is issued at the end of the construction, by a local government agency or planning authority. The document is a proof of the building's compliance with applicable building codes and other laws. It indicates that the property is in a suitable condition for occupancy. The developer is responsible for obtaining the Occupancy Certificate and it is issued only once the building has been completed in all respects and is ready to be occupied. A Completion Certificate is received by the builder from the metropolitan authorities, upon completion of construction.

An Occupancy Certificate is necessary while seeking loans from banks and financial institutions or while applying for water, sanitation and electricity connections. Legally, a homebuyer cannot move into the property without the document. The certificate is also important in scenarios when a buyer applies for Khata or when purchasing a re-sale flat. The sale of the apartment would not fetch a good price, without the OC.

To obtain the Occupancy Certificate, the following documents need to be submitted:

• * Copy of building sanction plan
• * Building Commencement Certificate
• * Copy of building Completion Certificate
• * Latest property tax receipt
• * Copies of no-objection certificates (NOCs) from pollution board or Airport Authority

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Indian residential market records annual sales growth of 60%; 158,705 housing units sold in H1 2022: Knight Frank India

 July 6, 2022

Office transactions, at 25.3 million sq. ft., translated to 107% year-on-year growth. NCR witnessed 154% YoY rise in home sales during H1 2022, according to the Knight Frank report released on July 6.

Residential real estate sales grew by 60% in the first half of 2022 to 158,705 units across the top eight cities in the country from 99,416 units in the same period last year. Home sales in the National Capital Region (NCR) centred on New Delhi grew 154%, according to a Knight Frank report released on July 6.

Office transactions, at 25.3 million sq. ft., increased 107% year-on-year (YoY), indicating the potential of the market as the COVID-19 pandemic let up and the economy bounced back.

Bengaluru led office transactions with 7.7 million sq. ft., followed by NCR with 4.1 million sq. ft., during H1 of 2022, Knight Frank India said in the 17th edition of its flagship half-yearly report: India Real Estate: Residential and Office Market H1 2022.

The report presents a comprehensive analysis of the residential and office market performance across the eight major cities for the January–June period.

Home sales of 158,705 units recorded in the period were the highest since H2 of 2013 for any half-yearly period. The robust sales have prompted a significant increase in real estate prices across all markets.

Homebuyers’ need for a lifestyle upgrade, low interest rates, comparatively low prices and the renewed need for home ownership sparked by the pandemic have been the primary drivers for the sales growth, the report said.

Developers responded strategically to the demand momentum and the shift in sentiment and launched 160,806 units in H1 of 2022, which was 56% higher than in the same period last year, Knight Frank said.

Mumbai’s sales volume of 44,200 home units accounted for 28% of the total sales amongst the top eight markets. In terms of the annual percentage increase, home sales in the NCR rose 154% YoY to 29,101 units. NCR accounted for the second largest share of sales among the eight top real estate markets in the country.

Bengaluru performed strongly too with sales growth of 80% YoY in H1 2022 to 26,667 units as increased hiring and steady income growth in the Information Technology (IT) sector buoyed demand.

Housing prices increased by 3-9% YOY

According to the report, residential prices recorded strong growth across all cities during the first half of the year. Prices increased across in all markets in the range of 3% – 9% YoY with larger volume markets like Mumbai (6%), Bengaluru (9%) and NCR (7%) posting notable increases.

It was the first time since H2 of 2015 that prices increased YoY across all markets, Knight Frank said.

Share of home sales in the Rs 1 crore range increased by 20%

The share of sales in the Rs 1 crore and above segment grew significantly from 20% in H1 2021 to 25% in H1 2022, the report said.

Homebuyers’ need to upgrade to larger living spaces with better amenities and the fact that pandemic-induced income disruptions did not affect higher-income categories as much as they did the others were thought to be the factors responsible for the rise in sales.

On the contrary, the share of home in the Rs 50 lakh to Rs 1 crore category dropped to 34% in H1 of 2022 from 39% in the same period last year. The Rs 50 lakh and below category declined marginally from 42% in H1 of 2021 to 40%, it said.

The previous high of 185,577 units in residential sales was recorded in H1 of 2013. At an 8-year high for any half-year period, new home unit launches witnessed an addition of 160,806 units in H1 of 2022 marking a rise of 56% YoY from 103,238 units in the same period last year.

Strong growth in sales velocity, has led to a modest decline in unsold inventory, which dipped marginally to 440,117 units in H1 of 2022. The strong uptick in sales also brought the Quarters to Sell (QTS) level down to 7.8 quarters from 10.9 quarters in H1 of 2021.

“Home buying has witnessed a strong rebound since the advent of the pandemic and continues despite inflationary concerns in the economy. The interest rate cycle having turned during this period has impacted affordability, but the performance of the broader economy (and changed buyer perceptions) has had a greater bearing on market momentum for the remainder of the year as it dictates homebuyer income levels and demand much more directly,” said Shishir Baijal, chairman and managing director, Knight Frank India.

Office transactions: Marginal slowdown in early part of the year overcome

On the office market performance, Knight Frank India said all the top eight cities experienced substantial growth during H1 of 2022, recording transactions of 25.3 million sq. ft. in January–June. Office completions were recorded at 24.1 million sq. ft. in the same period.

The office market recorded robust activity during H1 of 2022 as the pandemic waned and the economy recovered despite geopolitical concerns triggered by the Russian invasion of Ukraine. Office transactions grew 107% from 12.3 million sq. ft. in H1 of 2021. In the first half of the year, Q2 registered 14.6 million sq. ft, of gross leasing transactions compared to 10.7 million sq ft in the year-ago period.

A marginal slowdown in leasing reansactions in the early part of the year due to socio-economic and geopolitical standoff was quickly overcome, the report said.

Bengaluru made up 31% of the total area transacted with the highest rental increase of 13% YoY in H1 of 2022. With an increasing need for flexibility and a hybrid working environment, the co-working/managed office sector’s share of transactions increased to 17% in H1 of 2022 from 10% in H1 of 2021, Knight Frank said.

The volume of new completions, which were the highest since the start of the pandemic, reached 24.1 million sq. ft., higher by 61% over H1 of 2021, the report said.

Bengaluru, with 5.8 million sq. ft. and Hyderabad, with 5.3 million sq. ft., cumulatively made up 46% of the total space delivered during the period, the report said.

In terms of office rents, Bengaluru and Pune recorded the maximum increase in rental values at 13% and 8% YoY respectively, mostly due to higher demand and lack of Grade A space. Hyderabad, Mumbai and NCR also posted moderate increases in rental values. Rental values in Chennai, Ahmedabad and Kolkata remained stable, the report said.

In terms of sector-wise transaction, Information Technology remained the single largest occupier of office space with 27% of the total during H1 of 2022.

The share of the co-working sector in total transactions increased to 17% in H1 of 2022 from 10% in H1 of 2021, recording the maximum increase across sectors. Occupiers’ preference for flexibility and the overall service offering of co-working/managed office premises has taken root during the pandemic and is expected to stabilize. Other sectors including healthcare, logistics, media, legal services and consulting made up 32% of all leasing transactions.

“The robust performance delivered by the office market during H1 2022 has set the tone for 2022. Physical occupancy levels are rising as more companies want their employees to return to office. At the same time, hiring across many sectors has picked up as India’s economic growth continues. With the current pace of leasing, we expect the year of 2022 to see leasing volumes close to the peak of 2019 and exceed in the next year, said Baijal of Knight Frank India.

Indian real estate market transparency among most improved globally: Report

 July 5, 2022

Owing to the series of policy decisions including the implementation of the Real Estate (Regulation & Development) Act, 2016 and digitization of land registries and market data has helped Indian real estate market’s transparency level move upwards.

The transparency level in the county’s real estate sector is now amongst the top ten most improved markets globally and is part of the semi-transparent category at 36th spot out of 94 countries, showed JLL’s 2022 Global Real Estate Transparency Index (GRETI).

India’s improvement in transparency score between 2020 and 2022--from 2.82 to 2.73--is higher than some of the highly transparent markets, due to digitization and data availability for transaction processes in addition to overall market fundamentals.

The improvement in transparency is reinforced by increased institutional investment and the growing numbers of real estate investment trusts (REITs) helping to broaden market data and bring more professionalization to the sector to complement regulatory initiatives like the Model Tenancy Act.

“The move towards greater transparency in India will intensify investor interest and bolster occupier confidence. As a result, we will see more capital deployment into the country as it demonstrates consistent efforts to make accurate data available, enforce legal protections for property ownership, and enhance the regulatory environment to facilitate the transactions,” said Radha Dhir, CEO and Country Head, India, JLL.

Regulatory changes in the Indian real estate sectors like RERA and digitization in all transaction processes have led to a more sanitized and transparent data availability, helping the country make robust progress in the transparency in a sector that was known for its opaque ways of functioning.

“Sustainability continues to be the key focus for the world going ahead. We have seen India take great strides in sustainability in the past years, however, there is a need for a more concerted and congruent thought process and action plan to bring sustainability into the mainstream,” Dhir added.

To be able to move to the coveted transparent list, from the present semi-transparent list, the country needs to improve sustainability tracking. Sustainability has not been one of the major areas for change over the last couple of years for India, but investors and occupiers are driving this change.

Several initiatives are underway at either the national or local level including the National Guidelines on Responsible Business Conduct from 2021, with reporting for the largest 1,000 companies by market cap to be compulsory from 2022-23, and local plans such as Mumbai's Climate Action Plan, released in 2022, which is expected to establish a system to conduct regular energy performance benchmarking of buildings by 2025, and mandate a building energy management system in all new buildings.

Making green certifications/ratings and adherence to the Energy Conservation Building Code (ECBC) a mandate would give a greater push to sustainability. The regulatory impetus for mandatory tracking and reporting is still lacking but should get a major push following India’s call for Net Zero by 2070.

India’s score improvement was the highest on the parameter of improvement in transaction process. Given the regulatory initiatives, and better and deeper data availability, access to asset information has improved in a significant way. With reforms also creating the push for better professional standards for property agents and an environment for weeding out illicit finance through stringent anti-money laundering regulations, the transaction process in India has become more transparent and meaningful.

India’s improvement in this parameter was just behind Vietnam and Malaysia among other APAC countries.

“India’s investment performance parameter has held steady with a conducive investment environment in place and healthy opportunities for investors. The last two years have also been marked by upheaval and a reset in investor strategies. Some countries have found increased favour from investors and have moved up the rankings. India has kept its ranking steady, though it has improved its composite score in this parameter,” said Samantak Das, Chief Economist and Head of Research, REIS, India JLL.

Diversification remains a core theme for many investors in the Asia Pacific. Institutional capital, such as that controlled by asset managers, pension funds, and sovereign wealth funds, is active in alternative real estate sectors in nearly two-thirds of the markets tracked. That means expectations for transparency across niche property types like lab space, data centers, or student housing have grown.

India has made rapid strides in the availability of high-frequency data across its big cities and core asset classes through the intervention of tech platforms and regulatory reforms. It needs to replicate for other cities and alternative sectors with the work already underway through a mix of both private sector participation and government push towards digitization of land and property records.

As market transparency improves through access to data, better corporate governance practices, and more publicly listed REITs creating more publicly available datasets, the sustainability agenda needs a greater push for India to rapidly ascend to the transparent tier.

The road from regulations to putting them into practice--across financial regulations, land-use planning, taxation, anti-money laundering and eminent domain--will be necessary to increase transparency levels and match heightened expectations.

Find An Ideal (and Cheap) Office For Your Million-Dollar Idea

 Looks are important in business. Everyone understands this simple fact. But how important are looks with regard to office space?

Is the aesthetic value of an office a tangible thing? Companies live and die by branding and image. If you’ve got clients coming to your reception area and rolling their eyes at the décor, you’re not going to survive. The same could be said for potential employees – the top talent isn’t going to want to work in a dull space.

Therefore, it’s important to take the time to make your office more than just a row of desks. The key is to do so without spending a fortune, and this is often difficult. Upgrades cost money, so it’s good to know shortcuts and what pitfalls to avoid.

Upgrading Space on a Budget

Simply put, your office design should motivate you and your employees. Colors need to pop, furniture has to look relatively new, and there should be enough space for everyone to have their own personal areas. You can adequately outfit a space without breaking the bank, and the first place to save is on the actual physical property.

Generally speaking, you want to build up equity before making any significant purchases in terms of retail space or properties. Once you’ve established a profitable business, then you can begin to look to actually invest in some real estate. Until then, sit down and examine what type of space would work for your company.

Starting with a bare bones space isn’t ideal, but living on the cheap for a couple of years will really open up the possibilities down the line. If you plan on requiring some warehouse space early on, try and find a property that has room for growth or open floor plans. Older properties can often accommodate such a layout, so look into properties that have seen better days. You can also rehab these spaces with relative ease – having a low bar for improvement is one of the best ways to feel good about your office! Find an old warehouse located in a cool and upcoming area, put some work in, and you will have a great space in no time.

Location, Location, Location

Does your business require employees that are more likely to live in a city? If you need coders, developers, or highly regarded account people, you’re going to have to pay a little extra and locate the business near the city center or at least near a transportation hub. The best talent is going to congregate near the downtown area of any major city, so you’re going to have to sit down with a map and rule out anywhere that’s not within a quick commute.

If your office is accessible by public transportation, your company should be able to attract top talent. Millennials often don’t have cars (relative to other population segments), but they frequent bus and train lines. If you can get a better and cheaper spot 20 minutes outside of the center of the city, and it’s accessible by public transportation, you should be all set!

If your workforce isn’t as specialized, you can find low-end help in most areas, and you won’t need to splurge on a top-shelf location. Try to find a middle ground, as you should be able to find a bargain outside of the city without locating all the way out in the sticks.

Some of the cheaper offices are located in areas with chaotic surroundings, and others may have landlords or realty companies that lack any semblance of professionalism or standards. You don’t want to work next to a construction site, so be sure to visit the spot several times before making any decision. You need to strike a balance between comfort and practicality – if you can live with some noise and a slight hassle, take the cheaper spot that’s got thin walls and audible hammering.

Be Your Own Contractor

With a rare exception, keeping the overhead costs down is more important than finding prime office space. Sure, you want a great spot, but it’s better to find a cheap space and build it into something great. If you don’t have the money to do so, energy and time can make up for any lack of capital. Elbow grease goes a long way. Spend a weekend scraping and painting, or tear up the old rug and bring a little color into the space.

You don’t want to be the cheapest CEO of all time, however. If you are installing a new carpet, make sure it’s nice enough to last a couple of years. You don’t want to have more duct tape visible than the actual carpet! Also, don’t consider bringing furniture in from home! Although it may look nice, most home furniture isn’t designed to handle the rough and tumble office environment. Go to an auction – here you can find great deals and still get sturdy and purposeful products!

It’s possible to do most of the design and construction work yourself in your office. The only room that you may need a professional for is the reception area – a poorly decorated or maintained reception area can be a HUGE turn off to clients and prospects.

The same could be said for the space that’s set aside for higher-end or highly stressed employees. Your salespeople are going to bat for you and facing constant rejection – you should carve out an upbeat area for them.

Remember, as a small business owner, you’re going to be at the office… A LOT. Make it your home. Put some time and effort into making it cozy, and enlist the help of your employees. Making everyone do some manual labor around the office could be a great teambuilding exercise, and a welcome break from daily tasks.

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