Top 10 Emerging Areas to Invest in Mumbai - Part 2

 

KURLA WEST, MUMBAI

Kurla West is arranged right close to Bandra-Kurla Complex (BKC), the top business region in Mumbai. While it is estimated marginally higher than Kurla East at a normal of Rs 18,000 for every sq ft, it saw north of 10% cost development YoY and consequently is liked by individuals hoping to acquire out of their land speculations. SG Patil, Vendor, Gold Curl Land Expert, shares, "A significant lump of the accessible stock in Kurla West is for 1 BHK and 2 BHK units evaluated between Rs 50 lakh and Rs 1.5 crore. For individuals who wish to lease their properties, at least Rs 25,000 can be procured month to month from a 2 BHK home."

GOKULDHAM, MUMBAI

Arranged along Goregaon East, Gokuldham is a conspicuous real estate market, significantly involving multi-story private units. It is situated a ways off of 5-10 km from significant business habitats like Oberoi Commerz, Nirlon Information Park, Mindspace Malad, DLH Park, Boundlessness IT Park, Lotus Corporate Park, and NESCO IT Park. The impending Oshiwara Area Center is additionally only six km away. Other business centers like Bandra Kurla Complex (18 km), SEEPZ SEZ (10 km), Kensington SEZ (13 km), MIDC Andheri (10 km), and Hiranandani Business Park (13 km) are likewise nearby, making it a sought-after private center in Mumbai. While the costs are somewhat higher at around Rs 20,500 for every sq ft, the YoY development has been roughly eight percent.

GOREGAON EAST, MUMBAI

Goregaon East is decisively arranged among Andheri and Borivali. With current normal property costs floating around Rs 20,500 for every sq ft, Goregaon East is viewed as an optimal objective for those searching for pocket-accommodating homes in Mumbai. It is connected with Jogeshwari-Vikhroli Connection Street (JVLR), Western Express Parkway and Chhatrapati Shivaji Maharaj Worldwide Air terminal. Nitin Kumar, Owner, Amogh Realty, Goregaon, affirms, "Its closeness to the business belt as well as the popular Film City goes about as an impetus to rental interest. Financial backers and land owners here can procure a typical month to month rental pay of Rs 40,000-48,000 for a 2 BHK unit."

THAKUR TOWN, MUMBAI

Thakur Town is a thickly populated region only one km from the Western Express Thruway (WEH). Evaluated at a normal of Rs 20,000 for every sq ft, this mid-pay region offers a blend of skyscraper and low-ascent lodging buildings, drawing in experts working in Andheri, Goregaon, and Malad. Additionally, it is something like seven km from IT Parks, for example, Connection point IT Park, DLH Park, Collaboration Business Park and Nirlon Information Park. The majority of the private undertakings are by designers, like Oberoi Realty, Kanakia Spaces Realty and Yard Land Pvt Ltd. Normal rentals for a 2 BHK start at Rs 36,000 every month, pursuing it a favored decision among financial backers.

CHANDIVALI, MUMBAI

Discussing Chandivali, Fortunate Sharma, Seller, Arrangements 4 NRI, shares, "An upscale focal Mumbai area, Chandivali is encircled by Andheri in west, Vikhroli in east, Sakinaka in south, and Powai in north. It is an undeniable private decision for individuals working in Powai and Andheri and along the LBS Street. Costs here normal between Rs 17,000 for each sq ft and Rs 22,000 for every sq ft. It has shown reliable value appreciation to the tune of 7-10 percent over the most recent five years. Further, the Powai Metro Station on Mumbai Mtero Line 6 is under two km from Chandivali, adding to its remainder of benefits". According to Vaibhav Singh, an inhabitant, while "the accessibility of public transportation" is excellent, "water deficiency is infuriating". Notwithstanding, endeavors have been made to address the water issue nearby.

While these areas offer private units at generally lower costs, guaranteeing better returns, over the long haul, it is encouraged to direct site visits and check the property completely prior to continuing ahead with the exchange.

TO KNOW MORE ABOUT REAL ESTATE MUMBAI VISIT REAL ESTATE THANE CREDAI MCHI THANE UNIT

Unlocking the Potential: Investing in Commercial Properties in Thane City

 

Introduction:

Thane City, an emerging business hub located in the outskirts of Mumbai, offers lucrative opportunities for investors seeking to expand their portfolio in commercial real estate. With its strategic location, excellent connectivity, and progressive business environment, Thane has witnessed rapid development and is attracting businesses from various sectors. In this article, we will explore the benefits of investing in commercial properties in Thane City and shed light on the factors that make it an attractive destination for commercial real estate investments.

Strategic Location:

Thane City enjoys a prime location, situated in close proximity to major business districts, industrial areas, and transportation hubs. It acts as a bridge between Mumbai and the rapidly growing regions of Navi Mumbai and Thane-Belapur Industrial Area. Its strategic location makes it an ideal choice for businesses looking to establish a presence in a well-connected and accessible location.

Infrastructure and Connectivity:

Thane City boasts robust infrastructure and excellent connectivity. The city is well-connected to Mumbai via road and rail networks, ensuring smooth transportation of goods and easy access to the commercial hubs of Mumbai. The upcoming Metro Line and proposed infrastructure projects further enhance the connectivity within Thane City, attracting businesses and improving accessibility for employees and customers.

Thriving Business Environment:

Thane City is witnessing a rapid transformation into a thriving business hub. The presence of multinational corporations, IT parks, industrial estates, and commercial complexes has created a favorable ecosystem for businesses of all sizes. The availability of skilled workforce, modern amenities, and supportive government policies further contribute to the growth of commercial activities in Thane City.

Diversified Business Sectors:

Thane City offers a diverse range of business sectors, making it an attractive investment destination. From IT and technology companies to manufacturing and retail sectors, Thane provides ample opportunities for businesses across various industries. Investing in commercial properties in Thane allows investors to tap into this diversified market and benefit from the city's growing economic landscape.

Potential for High Returns:

Investing in commercial properties in Thane City holds the potential for high returns on investment. As the city continues to grow, the demand for commercial spaces is on the rise. With limited available land and increasing demand, commercial property prices are expected to appreciate in the coming years. Additionally, leasing out commercial spaces in Thane City can generate a steady rental income, providing investors with a lucrative source of revenue.

Conclusion:

Thane City presents a promising landscape for investing in commercial properties. With its strategic location, robust infrastructure, thriving business environment, diversified sectors, and potential for high returns, Thane offers a compelling proposition for investors looking to expand their portfolio in commercial real estate. However, it is essential to conduct thorough research, seek professional advice, and evaluate factors like location, market demand, and future development plans before making an investment decision. By leveraging the opportunities offered by Thane City, investors can unlock the potential of commercial real estate and reap the benefits of this dynamic and growing business destination.

TO KNOW MORE ABOUT COMMERCIAL PROPERTIES IN THANE VISIT REAL ESTATE THANE CREDAI MCHI THANE UNIT

Mumbai-based Dosti Realty forays into Pune market, to construct over 1 million sq ft

 

The builder is eyeing a topline of Rs 1,100 crore with its Dosti Greenspaces project in Hadaspsar; in talks to commit to more projects. The company said that the Pune project is selling at a rate of Rs 9,500-10,000 per square foot on the RERA carpet area, and is being undertaken as a joint-venture project.

Mumbai-based Dosti Realty has announced a foray into the Pune real estate market with plans for more than 1 million square feet of construction in the form of 2, 3 and 4 BHK apartments.

The company is eyeing a topline of Rs 1,100 crore with apartment sizes ranging from 475 sq ft to 1,395-plus sq ft.

The project named Dosti Greenspaces coming up in the Hadapsar area of Pune comprises approximately 5.42 lakh sq ft RERA carpet area followed by phase 2 including commercial development plus residential comprising about 5.08 lakh sq ft RERA carpet area.

The company expects a topline of Rs 550 crore from phase 1 and Rs 560 crore in phase 2. Dosti Realty has made an initial investment of about Rs. 155 crore towards the project, of which around Rs 70 crore is from internal accruals and Rs 85 crore as construction finance from ICICI Bank, said Deepak Goradia, Chairman and Managing Director, Dosti Realty.

Further, the company said that the project is selling at a rate of Rs 9,500-10,000 per square foot on the RERA carpet area, and is being undertaken as a joint-venture project between Dosti Realty and Indian Hume Pipe Co Ltd (IHP) on a revenue sharing basis. IHP is the owner of the land.

Goradia said, "We have enough work in Mumbai Metropolitan Region currently and are foraying into Pune real estate market with an aim of further expansion. After Mumbai and its surroundings, Pune is the first nearby option. For now, we have launched one project, and are in talks to commit to more projects."

The company in a statement said that the project is located close to a host of schools, colleges, hospitals, religious places, shopping malls, entertainment zones, commercial hubs, gardens, hotels and restaurants, etc. The project offers excellent connectivity with existing and upcoming infrastructure, making it a perfect investment opportunity for home-seekers and investors. One added advantage is the upcoming Pune Metro line three, which passes on Solapur Road at Hadapsar just outside Dosti Greenscapes.

Hadapsar, near Magarpatta in Pune, is a locality well connected to other parts of Pune, with easy access to major highways such as the Mumbai-Pune Expressway and Pune-Solapur Highway. The Pune Airport and Swargate train station are just a short drive away, and there has been significant development over the past few years. Its proximity to commercial hubs such as Magarpatta City and SP Infocity has also made it a preferred destination for working professionals, the company statement added.

TO KNOW ABOUT THANE REAL ESTATE DEVELOPMENT CONTACT US AT 022 2580 6868

Indian cities witness high-end property growth, Mumbai Ranks 6th

Mumbai ranks 6th among 46 cities globally in terms of annual price growth of high-end residential properties with appreciation of 5.5 per cent, according to Knight Frank. Real estate consultant Knight Frank India in its report 'Prime Global Cities Index Q1 2023' said that Mumbai, Bengaluru, and New Delhi have registered an increase in average annual prices in January-March 2023.

According to the consultant, Mumbai moved up from the 38th rank in Q1 2022 to the 6th rank in Q1 2023 based on the annual growth in high-end or prime properties. The consultant stated that Bengaluru and New Delhi also witnessed an upward movement in index ranking to 16th and 22nd ranks from their previous 37th and 39th ranks, respectively, in the first quarter of the 2022 calendar year.

They further stated that the rise in average prices in Mumbai was recorded at 5.5 per cent year-on-year (YoY), while it was 3 per cent YoY in Bengaluru and 1.2 per cent YoY in New Delhi, compared to Q1 2022. Dubai clinched the top position globally with an increase of 44.2 per cent in prime residential properties values.

The consultant explained that the Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 46 cities worldwide. The index tracks nominal prices in local currency.

The consultant attributed Mumbai's significant rise on the international index to the rise in demand in the city. According to the consultant, the demand has been strong for all segments, and they have observed a rise in the sale of higher-value products.

Knight Frank India CMD Shishir Baijal commented that the Indian economy stood out with steady performance despite concerns around global growth and inflation that marked most of 2022.

However, he noted that the Indian real estate markets displayed continued momentum in demand amid concerns of an inflationary environment and weathered a steep rise in home loan rates over the past 12 months.

TO KNOW ABOUT THANE REAL ESTATE DEVELOPMENT CONTACT US AT 022 2580 6868

₹100cr property tax raked in by TMC in 40 days of fiscal

Thane: The Thane Municipal Corporation (TMC) in Maharashtra has raked in Rs100 crore as property tax, nearly 10% of its target annual revenue for this fiscal, in just 40 days of the new financial year of 2023-24, municipal commissioner Abhijit Bangar informed.

The collections are also nearly 10 times more than what was collected in the same period last fiscal, officials said.

Experts attributed the rise in tax collections to the overall positive approach in the city, thanks to heightened focus on citizen initiatives and beautification works undertaken by the administration.

“We had set a property tax target collection of Rs1,000 crore for this fiscal year. We had appealed to the residents to pay their taxes on time and they have responded. Our property tax collection reached Rs 100.8 crore by May 10. Last year, till the same date, our collections were a measly Rs 11.4 crore. The number of properties brought under the tax ambit has also seen a rise this year seeing a rise from 6,415 last year to 74,908 this year,” said Bangar.

Bangar said 51.25% of the citizens have availed of the online facility to pay the tax. "33 per cent of taxpayers have paid tax through cheque. The tax payment rate in cash has now come down to 8.8 per cent. Also, the highest tax payment of Rs 36.19 crore has been made in the Majiwada-Manpada area. While the lowest tax payment of Rs 2.54 crore is in the Mumbra area," he added.

One of the initiatives that helped the corporation rake in good moolah was timely disbursal of tax bills. “Till last year, bills were generated and issued by May end but this year we preponed it to April. Also, we opened up new online windows for tax payments on the very first day of the fiscal which may have encouraged taxpayers to start paying taxes. Many who were hesitant to stand in queues supported this online scheme," he added. Meanwhile, activists cheered that the corporation has received good earnings from residents but also reminded that the administration must now intensify their focus on improving basic needs for the citizens.

“Thane city especially Ghodbunder road and Diva, Mumbra suburbs are spending money due to water scarcity since the last several years while bad roads is also a frequent complaint in the city. We now expect the corporation to make appropriate allocations on these fronts and provide better living conditions and good value for tax money of the citizens,” a city resident said.

TO KNOW ABOUT THANE REAL ESTATE DEVELOPMENT CONTACT US AT 022 2580 6868

MahaRERA to conduct first-ever exams for property agents

 

On January 10, 2023, MahaRERA had issued a new circular, making it mandatory for real-estate agents to undergo professional training and obtain certification from it before plying their trade as property agents. It outlined a process whereby all the 39,000 agents registered with it as well as new aspirants had to acquire MahaRERA certification before September 1.

Mumbai: Housing regulator MahaRERA will conduct the first ever examination for certification of real-estate agents in the state on May 20. Four hundred and fifty-seven agents, who have completed the basic course for their professional certification, are set to appear for the examination in Mumbai, Thane, Navi Mumbai, Aurangabad, Dhule, Kolhapur, Nagpur, Nashik, Pune and Solapur.

On January 10, 2023, MahaRERA had issued a new circular, making it mandatory for real-estate agents to undergo professional training and obtain certification from it before plying their trade as property agents. It outlined a process whereby all the 39,000 agents registered with it as well as new aspirants had to acquire MahaRERA certification before September 1.

“In order to bring about a certain level of consistency in the practices of real-estate agents, enhance knowledge and awareness of the regulatory and legal framework and practices, enforcement of code of conduct and with a view to ensure that real-estate agents are professionally qualified to assist home buyers, MahaRERA proposes to introduce basic real estate agent training and certification course for real-estate agents across the state of Maharashtra,” stated the circular. It added that estate agents were the intermediary between promoters and home buyers, and therefore it was essential to equip them with a knowledge of the regulatory framework to help them serve better.

The Authority, over the past two years, developed a basic curriculum for property agent training, and empanelled trainers to impart training in online, offline and hybrid forms from the first week of February. It has collaborated with the Institute of Banking Personnel Selection for undertaking online examinations so that estate agents who clear the exams can be given a certificate of competency.

From September 2023, the promoters will also have to ensure that the names and addresses of property agents that they submit, to comply with RERA provisions, possess valid competency certificates. “Mostly home buyers consult property agents and obtain primary information about projects from them,” said a MahaRERA official. “Considering their importance in the real estate sector, it is important that they know all RERA provisions and provide this information to home buyers to enable them to make an informed decision. The agents should be able to explain things like sale agreements, allotment letters, RERA-defined carpet area, defect liability clauses in RERA and so on to home buyers.”

The May 20 examination will set in motion the structural changes for estate agents aimed at improving transparency in real-estate transactions. In February, MahaRERA had issued another circular to agents, requiring them to mandatorily submit half-yearly reports of their transactions in line with the Prevention of Money Laundering Act (PMLA) guidelines issued in November 2022. The circular also made it mandatory for agents with business of more than ₹20 lakh to appoint a principal officer and a designated director in their firms and update the record with the Authority as per the guidelines issued under the Prevention of Money Laundering Act (PMLA). These changes will allow a tighter scrutiny of property transactions and help law-enforcement agencies trace transactions in money-laundering investigations.

Section 10 (b) of RERA and Maharashtra Rule 11 (5) under the Act already mandate estate agents to maintain and preserve books of accounts, records and documents separately for each project, whereas Maharashtra Rule 16 prescribes that these records be produced for inspection as and when required under the IT Act and the Companies Act.

TO KNOW ABOUT THANE REAL ESTATE DEVELOPMENT CONTACT US AT 022 2580 6868 

Highways and metros make peripheral localities hotspots for aspirational lifestyle

Connectivity and aspirational lifestyle are fast converting greenfield and redeveloped brownfield projects to aspirational localities in cities. As young users migrate there, real estate returns grow at up to a healthy 10 percent per annum

What makes a locality or a suburb a hotspot? Infrastructure is normally the biggest driver and city after city is responding to the rapidly developing infrastructure today. Developers who foresaw it, got in and secured land. But they need to have the holding power till the area achieves its intrinsic potential. They are able to make better returns once consumers start seeing value in that locality.

Following these fast-access infrastructure projects to select local areas is a host of metronomials who aspire to the good life in the city they live and work in. Usually with double incomes and one or two kids, these citizens look for easy access to work, social infrastructure and entertainment. Gentry of the neighbourhood matters, as also does the connectivity to commercial hubs. They don’t mind if the personal space is shrunk marginally to fit their budget. But this has to be compensated with clubs, walkways and gyms within the complex. Using all these insights, developers are now working on delivering these lifestyles in newly evolving hubs.

So let me pick three such hubs – one each in the megacities of India – Delhi NCR, Mumbai Metropolitan Region and Bengaluru.

New Gurgaon

Once well away from the city, today’s New Gurgaon (Sectors 82 to 115), has suddenly catapulted to prominence on the back of arterial infrastructure – the 1,350 km Delhi-Mumbai access-controlled corridor. The yet-to-fully-take-off Delhi-Mumbai Industrial Corridor too is under construction. From a peripheral suburb whose only advantage in 2009-11 was price arbitrage, today it is becoming the destination of choice to the young upwardly-mobile Gurgaonites. Anticipating this at least two decades ago, large developers such as Vatika and DLF created land banks and launched townships there. Today over one lakh houses have been handed over and it has a population of over four lakh. On an average, about 4,000 families are estimated to be moving to the area every month.

The Gurugram-Manesar master plan 2031, released in 2012, projected a population of 42.5 lakh spread over an area of 32,988 hectares. This plan was to be executed in the neighbourhood concept. All community services were planned for a density of 250 persons per hectare. This brought with it planning for large highways such as the Dwarka Expressway, the Southern Peripheral Expressway, Pataudi Road and the Kundli Manesar Palwal Expressway. The Central Peripheral Road and the Dwarka Expressway are the last two to be commissioned shortly. Tardy execution has led to these neighbourhoods coming of age only a decade later, in 2023.

But in this period local, neighbourhood and high street retail came up, as also schools, hospitals and entertainment centres. So, with wider roads, modern facilities and the best brands available in the neighbourhood, it becomes an aspirational locality for young urbanites to move into. In the aspirational index, the New Gurgaon sectors score. In the pipeline are the metro and regional rail lines. New Gurgaon’s proximity to the industrial hubs of Manesar and Bhiwadi and signal-free rides to the established corporate hubs of Cyber City and Udyog Vihar also help.

Young professionals working in Gurgaon have been moving in. The cost of apartments here are about 20 percent lower than that of premium established Gurgaon areas such as Golf Course Road and Sohna Road. Accounting for 67 percent of retail and 50 percent of the residential development of New Gurgaon, the Vatika group is heavily invested in this locality. So, the planning has been for future growth. Green-rated buildings, underground electric and fibre optic cabling, 100 percent sewage treatment plants, dual plumbing systems for water conservation and one lakh kilometre of shaded walkways, all help to draw in the young residents and global corporate houses.

Malad-Goregaon

Metro Line 2A from Dahisar to DN Nagar and Line 7 from Dahisar to Gundavali, Andheri (E) in the western suburbs that became operational at the beginning of the year have enhanced connectivity, improved ease of travelling and reduced travel time by more than half. Umesh Jandial, Chief Business Officer of Omkar Realtors & Developers believes this to be the major factor when it comes to establishing the credentials of any new and aspirational locality. They mostly move from the outskirts in North Bhayandar and Borivali. The lure is ease of travel, lifestyle amenities, highway and metro connectivity to commercial hubs and good amenities.

A Knight Frank report noted that these Western suburbs accounted for 55-62 percent of sales registrations in February and March 2023. The age group of customers buying here is 35-45 years old, with a ticket size of Rs 1-3 crore for a unit. They are salaried and have two incomes and usually two kids. When unit prices had gone very high, sizes were reduced from 500 to 275 to match ticket sizes. But developers ensure that all amenities like a gym and walking area are present in the complex.

Malad-Goregaon is seamlessly connected to the central business districts (CBDs) of Andheri, BKC via the Western Express Highway as well as to the upmarket areas of Powai and Vikhroli through the Jogeshwari-Vikhroli Link Road. Malls such as Oberoi and Infinity are in the vicinity. Schools and other social infrastructure are also present. All these are perks for the young urbanite. Andheri onwards, Malad-Goregaon has had its own identity.

Redevelopment opened up fresh tracts of land for development here. For developers like Omkar with access to 30-35 acres via redevelopment, the first task was to meet all government norms such as road width, schools and dispensaries. Today a 1 BHK is available for Rs 65 lakh to Rs 1.2 crore and 2 BHK is priced at up to Rs 10 crore. Even more promising is the average annual 10 percent rise in values and therefore returns from investment.

Whitefield

This was Bengaluru's first planned IT hub, which came up over three decades ago. The wait was only for the mythical metro line which would ease the pain of travel. With one line commissioned and another soon to be completed, Whitefield is a modern hub ready to take off. The suburban rail line is another major connector to the city and beyond, to the far-flung airport. Large corporate users such as Wipro had been running special fleets of buses for employees. After all, the new non-access controlled airport connection via Budigere has reduced the time to travel from Whitefield from a 2-3 hour ride to mere 45-55 minutes. Today young professionals stay there by choice and not merely because they work there. Responding to this new crop of residents, cloud kitchens, Bengaluru’s staple format, and big brand retail has been making a beeline to the suburb as well.

If planning was a norm in Indian townships, these equations would have been taken for granted. But in a chaotic, organically developing city format, transport links and new developable areas can be lifelines to ageing, creaking city infrastructure that does not match the aspirations of the new metronomials.

TO KNOW ABOUT THANE REAL ESTATE DEVELOPMENT CONTACT US AT 022 2580 6868

Thane sets record with ₹100 Cr property tax collection in just 40 days

TMC Commissioner Abhijit Bangar commended the unprecedented response from Thanekars in paying their property taxes.

Thane: The Thane Municipal Corporation (TMC) has collected property tax of Rs 100 crore as of May 10, 2023. According to TMC officials, this amount was collected in just 40 days, setting a record for property tax collection in the financial year 2023-24.

TMC Commissioner Abhijit Bangar commended the unprecedented response from Thanekars in paying their property taxes.

Bangar stated, "Following the record property tax collection of Rs 722 crore in the previous financial year, the TMC initiated tax payments for the current financial year from April 1. Citizens responded spontaneously to the messages sent to their mobile phones."

The Chief of Thane civic body has set a target of collecting approximately Rs 1,000 crore in property taxes this year, and efforts are underway to raise awareness among citizens.

Ten-fold Increase Compared to Last Year
Last year, until May 10, the TMC collected property tax amounting to Rs 11.46 crore, whereas this year the collection has reached 100.85 crores, marking a ten-fold increase compared to last year. The number of property owners paying taxes also saw a similar trend. By this time last year, 6,415 property owners had paid their taxes, while this year the number reached 74,908.

The Majiwada-Manpada administrative ward of TMC leads in tax collection with Rs 36.19 crore.

The collection amounts for other wards are as follows:

• * Vartak Nagar: Rs 25.52 crore

• * Naupada-Kopri: Rs 10.85 crore

• * Utthalsar: Rs 8.96 crore

• * Lokmanya-Savarkar Nagar: Rs 4.5 crore

• * Kalwa: Rs 3.25 crore

• * Diva: Rs 3.56 crore

• * Wagle Estate: Rs 2.72 crore

• * Mumbra: Rs 2.54 crore

• * Head Office: Rs 2.99 crore

Bangar mentioned that the majority of tax payments were made digitally. The TMC collected Rs 51.69 crore through online channels, while the remaining amount was collected through cheques, cash, demand drafts, and card payments.

"In the past, payments were sent to property holders by the end of May. However, in this financial year, the link to pay online was made available via SMS on the very first day, April 1, 2023. Consequently, taxpayers began paying their property taxes from that day. Since there is no need to wait in queues for property tax payment, citizens have also shown great support for this scheme," informed Bangar.

TO KNOW ABOUT THANE REAL ESTATE DEVELOPMENT CONTACT US AT 022 2580 6868

Why Investing in a Commercial Property Makes Sense for Growth and Appreciation

 

Investing in real estate can be a great way to grow your wealth and secure your financial future. Commercial property investment, in particular, can offer several advantages over residential property investment. In this article, we’ll explore why investing in a commercial property makes sense for growth and appreciation.

Higher Rental Yields

One of the biggest advantages of investing in a commercial property is higher rental yields. Commercial properties, such as office spaces and retail outlets, tend to have higher rental incomes than residential properties. This means that you can generate more rental income from a commercial property than you would from a residential property of the same value.

Long-term Leases

Another advantage of investing in commercial property is that the leases tend to be longer than residential leases. This means that you can secure a stable, long-term income stream from your investment property. Typically, commercial leases can run for five to ten years or longer, which provides greater financial stability and predictability.

Appreciation

Commercial properties also tend to appreciate in value over time. This is because the value of a commercial property is often tied to the income it generates. As the rental income from the property increases over time, so does the value of the property. Additionally, commercial properties may be able to benefit from location-based appreciation, such as being located in a growing business district or near a major transportation hub.

Diversification

Investing in commercial property also provides diversification for your investment portfolio. Commercial properties have a low correlation with other asset classes, such as stocks and bonds, which can help reduce overall portfolio risk. Additionally, investing in commercial property can help you spread your investment across different types of properties, such as office buildings, shopping centers, and industrial warehouses.

Professional Property Management

Managing a commercial property can be more complex than managing a residential property. However, investing in a commercial property also means that you can hire professional property management services to handle the day-to-day operations of the property. This can help you save time and effort while ensuring that your investment property is properly maintained and managed.

In conclusion, investing in a commercial property can offer several advantages over residential property investment, including higher rental yields, long-term leases, appreciation, diversification, and professional property management. As with any investment, it’s important to do your research and due diligence before investing in a commercial property. However, if you’re looking to grow your wealth and secure your financial future, investing in commercial property may be worth considering.

TO KNOW MORE ABOUT COMMERCIAL PROPERTIES IN THANE VISIT REAL ESTATE THANE CREDAI MCHI THANE UNIT

Six years of MahaRERA: 41 lakh houses under construction in Maharashtra, says chairman

The MahaRERA chief said there are 1.6 crore citizens waiting for possession of these houses, which are being built with an investment of Rs 14 lakh crore.

Speaking at the event, Ajoy Mehta, Chairman of MahaRERA said, "The younger generation is into experience. Things are changing, people do not want to be stuck. So, rental housing is coming. The uberisation of real estate is going to come, and we are looking at how we regulate that." (Picture credits: Mehul R Thakkar)

There are 1.6 crore citizens waiting to take over 41 lakh houses that are currently under construction in Maharashtra, at a total investment of Rs 14 lakh crore, Maharashtra Real Estate Regulatory Authority (MahaRERA) Chairman Ajoy Mehta said on May 9.

He was speaking at a conference organised by the Confederation of Real Estate Developers' Associations of India – Maharashtra Chamber of Housing Industry (CREDAI – MCHI), the apex body of real estate developers, to mark the sixth anniversary of the MahaRERA real estate regulatory body.

Mehta said regulation in the real estate sector was very much needed and that the Real Estate Regulation Act (RERA) Act was introduced at a time when data showed the average delay in real estate projects was 27 months in Mumbai, around 47 months in Delhi, and 20 months — the lowest — in Pune.

"This was the kind of delay in 2017 for which the government had the data in front of them. Homebuyers here were not sure whether they were going to get their homes, where their money had gone, what happens to their interests. The homebuyers’ EMIs had started,” said Mehta.

66% of litigation over land and property

According to Mehta, the data before the government at that time showed that 66 percent of the ongoing litigation in courts was related to land and property. "So, these disputes were there, and the government had to act," he said

90% of states under RERA

"Today I can say that 90 percent of the states in India have RERA, which regulates the real estate market. For the banks, we have the Reserve Bank of India (RBI); for equity markets, we have the Securities and Exchange Board of India (SEBI). And similarly, we have RERA for the real estate market. In the real estate space, there is promise of the future. Therefore, the thought process is that the government must regulate and monitor this space."

Registering a project will not be simple anymore

Addressing the developers, Mehta said the process of registration would not be simple anymore and that MahaRERA would scrutinise all proposals intensely. "We try to locate all of those things from where disputes are coming. We are now monitoring those things and that is making a few people very uncomfortable. But I am very comfortable, and unless I sort that out, disputes will not end,” he said.

“Registration is not going to be simple anymore. It will not be like you submit a project in an envelope and we will stamp it. We are going to scrutinise, and scrutinise it intensely. It takes time and a lot of people are complaining that it is taking a lot of time, but that time will be required. I am not apologetic, I owe you an explanation, but not an apology. Developers need to train their staff and do the proper work for a registration."

Quarterly progress reports

According to Mehta, quarterly progress reports (QPR) will be monitored closely. "Take the example of January 2023: more than 700 projects were registered, but more than 500 developers have not filed QPRs three months after registration. These QPRs have to be filled every three months. We started issuing notices, and later people came running to us that we have not started work yet,” he said.

“I would like to tell everyone that even if you have not started doing work, it does not mean you do not do the necessary compliance. You file and upload a report that we have done nil work. But compliance will be required and report filing will have to be done," said Mehta.

Designated accounts to be monitored

As per Section 4 (2) (D) of RERA Act, 2016, promoters are required to open a separate account in a scheduled bank exclusively for a project. Under the RERA regime, 70 percent of the amounts released from real estate project allottees (buyers) is to be deposited in a separate RERA designated no-lien, no-charge bank account to cover the cost of land and construction for the specific project.

In this context, Mehta said, "Every project should have a separate designated account, and that has to be done. We are not going to allow non-compliance here. We have developers who are asking for time to fall in line and ensure a separate account for the project, and I am fine with it. Developers can take time, but they will have to do this compliance.”

“We want to make a system where it is not RERA that will ask developers to do compliance, but it is the people, citizens and homebuyers that will compel developers to comply and do their business," he emphasised.

Speaking to young developers at the conference, Mehta said, “There have been instances when many people ask me where the real estate space is heading. What will happen in real estate in the future?”

Addressing the point, he said, "One trend that we find world over is that 45 to 60 percent is rental housing. You will be surprised to know that even in India, in Karnataka, 46 percent of the people have rental housing. Mumbai is only 20 percent, therefore rental housing is going to boom in a big way. It is coming.”

“How do you regulate the rental market? What are the kinds of agreements that will come in the rental market? We, as a lawmaker, as a policymaker, will look at how rental markets are going to shape up," he added.

"The younger generation is into experience. Things are changing, people do not want to be stuck. So, rental housing is coming. The uberisation of real estate is going to come, and we are looking at how we regulate that,” he said.

People are no longer just buying space and products anymore but are purchasing systems and services, he said. “There is student accommodation, old-age homes, and young couples having homes. But they need services, and here people are not just looking at a house, but also at services. So, housing will now start aligning itself with services that we need, and services will become more predominant than the house itself." 

TO KNOW ABOUT THANE REAL ESTATE DEVELOPMENT CONTACT US AT 022 2580 6868

MahaRERA issues notices to 584 developers for non-update of quarterly information

These are part of a total 746 new housing projects covering 50,288 apartments worth around Rs 22,449 crore that were registered with the regulator in January.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued show-cause notices to over 584 promoters of housing projects that were registered in January for not updating information related to their projects.

These are part of a total 746 new housing projects covering 50,288 apartments worth around Rs 22,449 crore that were registered with the regulator in January.

As per the section 11 of RERA Act, 2016, once the project is registered with the regulator, certain information provided by the project’s promoter at the time of registration needs to be updated every 3 months and financial details once in a year. The project proponent is expected to update details such as number of registrations, money received, expenditure incurred.

A homebuyer is expected to benefit from this with reliable information and updates about the specific housing project, its progress, cost and many such details are easily available through the regulator’s portal.

These new developers were expected to update this information by April 20 as the first quarterly report. However, these 584 projects have not updated this information and therefore the regulator has issued the notices to all of them.

All of them have been given a period of 15 days to update the information and action will be initiated against the developers that do not comply as expected.

Every developer is required to update the information in prescribed statement forms on the regulator’s website on a quarterly and annual basis. It includes important customer related matters such as changes in the approved building plan, current status of the project, how many plots, flats, garages have been registered, etc.

MahaRERA had issued notices to around 16,000 real estate developers and promoters across the state for not receiving satisfactory responses with regards to information about their projects.

As part of enabling the Close Monitoring System, the regulator has started reviewing the projects registered since its inception in May 2017 till March 2022.

Following this, in January, MahaRERA had issued show cause notices to 19,500 projects that had not updated the mandatory project information as per section 11 of the Real Estate (Regulation & Development) Act, 2016. However, over 16,000 project promoters had either not responded to these notices or have submitted unsatisfactory responses.

From here on, MahaRERA will be keeping a check and scrutinizing the quarterly financial progress reports of these new projects starting from the first quarter of since the registration.

TO KNOW ABOUT THANE REAL ESTATE DEVELOPMENT CONTACT US AT 022 2580 6868

 

Mumbai's Next Big Infrastructure Project Set To Shorten Kharghar Travel Through A Tunnel

Mumbai is undergoing massive infrastructural development to improve urban mobility in the city. One such project is the Kharghar Turbhe Link Road (KTLR), which is expected to significantly reduce travel time from Mumbai, Thane, and Navi Mumbai to Kharghar.

Key Highlights of the KTLR Project

The Kharghar Turbhe Link Road project, which is expected to decongest the Sion-Panvel highway, will cost Rs 2,195 crore. The City and Industrial Development Corporation (CIDCO) will be the implementing agency of the project, which is expected to be completed within three years.

The 5.490 km long KTLR project will start from Turbhe and reach Kharghar via Juinagar, offering a seamless commute that avoids the usual route via Sion-Panvel Highway, Thane-Belapur Road, and Palm Beach Road. The upcoming corridor will also be beneficial for commuters travelling via the arterial Thane-Belapur Road.

One of the key features of the project is the construction of a 1.763 km long tunnel passing through the Kharghar hills, which will be a four-lane corridor. CIDCO has already prepared the Detailed Project Report (DPR), and pre-construction work has commenced. The process of acquiring necessary clearance from different agencies is currently underway.

Project Funding

The KTLR project faced delays due to a disagreement between Maharashtra Industrial Development Corporation and CIDCO over funding. After the Maharashtra State Road Development Corporation decided not to fund the project, CIDCO decided to implement the project and bear the entire cost, estimated to be Rs 1282.37 crore.

Conclusion

The KTLR project is a significant infrastructure development initiative by CIDCO, aimed at improving urban mobility in Mumbai. The project is expected to provide a seamless commute and reduce travel time by 30 minutes from Mumbai, Thane, and Navi Mumbai to Kharghar. The construction of the tunnel passing through the Kharghar Hills will be a key highlight of the project, and the pre-construction work has already commenced.

TO KNOW ABOUT THANE REAL ESTATE DEVELOPMENT CONTACT US AT 022 2580 6868

Luxury housing sales up 151% across major cities in Q1 2023: Report

The report suggested that strong sales and launch momentum are expected in the first half of 2023 with a minor dip in the middle of the year

The post-pandemic uptick in ownership of luxury housing results from homebuyers looking for larger spaces and a higher preference for home ownership with better amenities, the report said. Luxury housing sales increased by about 151 percent annually in the January-March 2023 quarter, according to a report by real estate consultant CBRE.

The report, India Market Monitor Q1 2023, further highlighted a 12 percent quarter-on-quarter as well as annual growth in overall sales of residential units across all segments during the quarter.

Delhi-NCR led the luxury segment housing sales with a 216 percent growth in the first quarter over Q1 2022.

The post-pandemic uptick in ownership of luxury housing results from homebuyers looking for larger spaces and a higher preference for home ownership with better amenities, the report said.

Apart from Delhi-NCR, the study noted that cities including Mumbai, Hyderabad, Pune and Kolkata also saw high traction for high-end units.

A total of over 78,000 housing units were sold in Jan-Mar 2023 and about over 81,000 units were launched during this period. Out of this, 49 percent share was recorded in the mid-end category in units sold, followed by a­ffordable/ budget projects," the report said.

However, luxury sales in Bengaluru remained unchanged in Q1 2023 from the same quarter in 2022.

A surge in housing sales

Overall housing sales in Mumbai surged by 44 percent, Hyderabad by about 800 percent, Kolkata by 100 percent and Pune by nearly 13 times annually for the quarter ended March.

Mumbai, Pune and Delhi-NCR had a 62 percent cumulative share in sales of housing units in the same quarter.

The report pointed out that Mumbai led in the number of total housing units sold at 19,000 units, followed by Pune (18,000 units), Delhi-NCR (11,600 units) and Bengaluru (11,500 units).

On the new launches front, Mumbai (25,300 units), Pune (16,000 units) and Delhi-NCR (11,200 units) collectively accounted for about 64 percent share during the quarter under review.

"We foresee demand for luxury housing this year will primarily be driven by the aspiration of continued home ownership. The momentum is expected to continue in the coming quarters as well," said Anshuman Magazine, chairman and CEO. India, South-East Asia, Middle East and Africa, CBRE.

The outlook

The report suggested that strong sales and launch momentum are expected in the first half of 2023 with a minor dip in the middle of the year. However, its impact could be cushioned by the festive season.

"Projects in the higher ticket range (Rs 1.5 crore and above) would continue to see traction in sales as the market has witnessed a spate of new launches in this bracket of late. Additionally, the impact of rising home mortgage rates would be limited on this segment," the report said.

The number of joint ventures and joint development initiatives is expected to increase as large developers enter tier-II cities as they partner with local players to manage regulatory hurdles and understand consumer preferences, the report suggested.

TO KNOW ABOUT THANE REAL ESTATE DEVELOPMENT CONTACT US AT 022 2580 6868