Kochi Real Estate is back with a bang!

If the crowds around the new Lulu Mall at Edapally in Kochi, measuring over one lakh in number on a daily basis are to be believed, then Kochi Real Estate is back with a bang. We had recently featured how builders like Puravankara are offering zero booking prices for new luxury apartments around Marine Drive, Kochi. Commercial real estate developers and even star hotels across the world are seeing these massive crowds as a positive sign to invest further in cities in Kerala like Kochi and Trivandrum to develop the next gen commercial spaces. Trivandrum is also set to welcome new malls in another 2 to 3 years.

The Revival

The recent statistics available from NHB residex point to a revival in the Kochi real estate market. We have covered the ups and downs of Kochi real estate in a number of articles in the past. 

Only 6 months back the numbers weren't showing signs of revival.  However things have taken a turn for the better since Onam last year and new excitement is on the horizon post opening of the Lulu mall at Edapally and the work on the Kochi metro finally getting started.

CITIES

2007     Index

Jan-Mar 2011 Index

Apr-Jun 2011 Index

Jul-Sept 2011 Index

Oct-Dec 2011 Index

Jan-Mar 2012 Index

Apr-Jun 2012 Index

Jul-Sep 2012 Index

Oct-Dec 2012 Index

Kochi

100

86

107

97

82

72

73

80

87

Leading developers in Kochi we spoke with were still saying that market is not back to the old levels seen in 2010 or 2011. However they are optimistic and look forward to seeing an increase in the number of bookings from Vishu, which kick starts the Malayalam New year on April 14 of 2013.

Searching for Trivandrum Real Estate - Know the steps

Are you one amongst those searching for Trivandrum Real Estate? Like any product or service that you consume or buy, purchasing a property also encompasses multiple stages in the buying cycle. An awareness of each of these can help you overcome mistakes and understand where or when to seek help.

Pre-Purchase or Awareness

Typically months before purchasing a home, the need for the same can emerge in casual discussions with friends or family members or it could be a well thought out decision to settle down in a particular locality or invest in property to get returns. 

The human brain is capable of over 1000 processes every second but we're subject to cognitive biases, those annoying glitches in our thinking that cause us to make questionable decisions and reach erroneous conclusions.

For the same reason, we reach certain conclusions even before we start hunting for our property. For e.g. lets say you have an affinity towards a particular locality like Kowdiar in Trivandrum. Due to the cognitive bias, you could justify to yourself a higher amount of investment in an area. But since you may not be aware of recent developments in all parts of the city, you could make the purchase in your mind even before stepping out to do one and miss out on a better bargain in another locality.

As our CEO, Mr. K Ramachandran remarks " For 40% of our customers, they are closed in their mind even before venturing out to purchase a house or a villa. The rest 60% seek to understand their needs and come with an open mind which definitely helps us to guide them better". 

In a nutshell, although pre-purchase is a significant part of the buying process, its better to come to conclusions at this stage only if you possess all information at your disposal. Armed with reasonable amount of info and with an open mind, the doors could open up to a plethora of investment options for homes, plots or flats in the city that are ideally suited to your needs.

Assessment of Alternatives:

During this stage one typically focuses on reading news sites, blogs, magazines or even venturing out to meet experts on the field to compare alternatives. The challenge which customers tell us a lot about when comparing alternatives is their paucity of time. Most of them plan to complete purchase one to 3 months down the line during this phase, but don't have enough time build their info on all builders, localities etc. 

"Building good awareness in people is only 25% of the job done. Comparing alternatives can take up 75% of the time in buying a property hence is a very important phase which requires good advise", says Mr. Ramachandran, CEO of Nandanam Consultants. 

 "At Nandanam we spend quite a bit of time understanding the stated and unstated needs of customers. For e.g. a family was looking to buy a flat and a lot of properties being offered to them by the market were good but not ideal, since they were actually looking for an apartment for their disabled parents which meant only certain properties would suit them". Once we identified the right apartment, they took no time in closing on the purchase.

If you are short on time usually under a month to evaluate alternatives then good advise is extremely important to short list the right options.

Consideration and Purchase:

Once you have identified the right property then you can evaluate with your family if it meets your value criteria.We define value as follows: 

Value = (The importance of need you are trying to fulfill) * (usefulness of the property) / (Cost of fulfilling the need) 

Intrinsically at the back of your mind, people often do these calculations without realizing it. Purchase is usually easy once the shortlisting criteria is right. 

Post Purchase:

The true test for the property buyer is the post purchase phase once you have decided to purchase a  particular property. 

"When customers search for property on their own they usually miss the due diligence part which might go into months if the documents are not proper or are not available to the buyer on registering the property. A lot of deals fall through due to improper documentation and lack of due diligence", says a legal and documentation expert at Nandanam Consultants.

We hope outlining the steps above gives you a better understanding of the property search process and helps you take care of the things you need to consider.

Small sized homes coming in to fit buyers needs

A spate of apartment launches and entry of new players in the residential property market has meant a creation of oversupply coupled with less demand. As builders especially in large cities like Mumbai and NCR look dismayed in terms of selling off their inventory a new breed of developers with pocket sized homes are trying to disrupt the market.

In his path breaking book on Disruptive Innovation by Clayton Christensen, professor at Harvard Business School, he mentions that disruptive innovations make a product or service much more affordable through better technology or new ways of operating. He cites the example of Toyota which disrupted the US car market when large players like GM didnt even consider them as competition to begin with as they entered the bottom end of the market.

In the real estate sector there is tremendous scope for disruption. In a market like India where people are looking to buy homes under 30 to 40 lakhs there are not many options especially in larger cities. What can truly disrupt this market is better and faster construction techniques coupled with smaller sized homes which can be sold in larger numbers. The concept has been replicated in FMCG in the form of sachets for shampoos which led to a mass consumption even amongst the poor who could not afford a larger sized bottle.

What this means is that we should start seeing developers think differently and capture the lower segment of the market which has flats starting from 500 sqft onwards in much affordable prices. Examples are already to be seen. Many developers today are making plans for the sub 1200 sqft segment instead of higher carpet sizes to keep the costs lower for customers. 

In a market where absorption of new homes has slowed down compared to pre 2010, developers are finding unique ways to keep the inventory moving. Property research firms also point to the unlimited demand for affordable housing under 25 lakhs across India, which might open up a plethora of new launches of smaller sized homes in the future.

Purvankara tempts Kochi property buyers with zero booking cost offers

Purvankara, a builder of repute in India is now in Cochin to offer property buyers zero cost on booking apartments. Purvankara currently has the following apartment projects in Cochin.  Purva Oceana at Marine Drive, Purva Grandbay at Marine Drive and Purva Eternity at Kakkanad and Purva Moon Reach at Seaport-Airport Road in Cochin.  Purva Oceana project is ready for occupation and other projects are under construction. 

We have signed up as the official channel partner of Puravankara for marketing their apartments amongst our wide customer base offering a set of unique benefits to our customers:

Unique Benefits with Nandanam Consultants

• Cash back offers up to Rs.50,000 on booking. Cash back is credited to customers within 30 days of signing booking agreement with Purvankara
•  Attractive discounts on resale and new flats in Cochin. These discounts are for a limited period only.
•  Comparison with other projects in similar locations in Cochin so that you end up making a prudent decision.

A walk amongst the Tea Gardens of Munnar amidst your luxury villa

Munnar – A leaf out of God’s own country and the chance to own a luxury villa in a four star resort

Kerala, God's Own Country is bestowed with a many a beautiful hill stations, tea gardens, museums, lakes and pristine beauty. Any traveler to this wonderland would love to visit one of its most favoured destinations – Munnar, rated as one of the 50 must see destinations of a lifetime by National Geographic.

Munnar is an ideal getaway for all those who want to enjoy some genuine lovely moments with nature. Situated at a height of 6000 ft and at a distance of 140 kms from Kochi, you realise that this hill station in Kerala is tremendously gifted for the tranquil beauty of nature, the weather that suddenly turns cooler, the fogs which travel over the mountains and the first signs of green tea gardens, which is an indication that you have arrived in Munnar.

The Banjara Hills Resort in Munnar

Nestled amongst this beauty is a new resort that is coming up – the Banjara Hills Resort  in Munnar. Nandanam Consultants with a repute of selling high end real estate projects in Kerala has bagged the exclusive property marketing rights of Banjara Hills resort in Munnar. This post is aimed at giving you a sneak peak of what this resort offers for the home buyer. 

The unique concept about Banjara Hills is that you own a villa in this four star resort at a amazing price with hassle free maintenance in a pristine destination. This is a dream come true for every home buyer. What comes with this is an option for a 14 day free stay in this luxury resort anytime during the year complete with amenities like a pool, club house, restaurants, sports facilities and the like.

The project is brought to you by Chand Group – which has made its mark in the field of Education and Academic Publications. Chand Publications, Chand Academy and Chand Builders are some of the companies under the aegis of the Chand Group.

Facilities in the Banjara Hills Resort

The resort which has construction in full swing is set to feature over 100 cottages and 50 suites, making it one of the Biggest Resorts of the state. Construction of around 14 cottages is already complete and buyers from all over the world are making a beeline to get the best villas in the resort in their name. 

The Banjara Hills consists a two-storey clubhouse featuring over 10,000 square feet of amenities, where your every whim will be happily indulged. A state-of-the-art swimming pool where memories will be born, a coffee shop that encourages long meandering conversations, a multi cuisine restaurant dishing out delicious food, a separate vegetarian restaurant for the health conscious are some of the amenities being developed in this fantastic project.

The project also features: Ayurvedic Massage Centre & Spa, Basketball Court, Internet and Wifi, Multi Gym, Board Rooms, 24 x 7 Generator Backup, Multi Gym, a Conference hall with 200 pax and even a helipad!

 Your space - Furnished villas that you own at Banjara Hills

At Banjara Hills you have an option to choose from fully furnished 1BHK, 2BHK and premium suites. It is one of the biggest in terms of inventory & area and one of the best in terms of quality. A lot of thought and care has gone in to designing these villas keeping in mind all your needs. A well appointed kitchenette and handpicked furniture makes its more of a home than a resort.

The maintenance of your dream homes are completely borne by the promoters of the project, there by ensuring that your villa remains in perfect condition through the year.

In Summary

At Banjara Hills what you own is a tangible share, in the form of a luxury villa or a suite in a four star luxury resort. This project is a tailor – made package of steady monthly returns coupled with appreciation of assets, for the return conscious investor.

For further information or questions about Banjara Hills, you can contact us at www.nandanamconsultants.in

Luxury homes from 2 crore to 20 crore. What does the future hold? Any takers?

If you consider the 1.53 lakh high net worth individuals in India, the number of luxury home options are few and far between. These individuals are well travelled and do not want to settle for a less convenient lifestyle. In fact luxury is in the heart and soul of everything they do.

Take the case of Rajiv Lodha (name changed) a high flying business man who hails from North India but is now settled in a Luxury villa in Bangalore he bought in 2008. For Rajiv, the villa which he bought for 1cr + then is already getting a tad too boring. You may ask why.

ITC Grand Chola in Chennai which was launched recently

For a man used to plush experiences wherever he travels, his demands are justified. Hotels like the ITC Grand Chola in Chennai with a 30,000 sq.ft ball room, spa, luxury retail options or the  Lebua hotels which has a cover charge of $400 per person, with a limousine pick up service and mouth watering Muglai cuisine, Rajiv has experienced it all. No wonder he yearns for more.

This is not a fad but an emerging trend in countries like India and China where the  new segment called the middle affluent class is more and more luxury conscious by the day and are not bothered too much by price but more by the value for investment. 

Rajiv here is looking forward to the Real Estate luxury show which will open in Mumbai soon and then come to Bangalore and Delhi. He has his eyes set on Skyline Villa Maria which is priced between 12 to 22 crores and is shown only to a select few by invitation. At Nandanam Consultants, when super luxury projects are launched we do consult with developers on luxury homes which are always showcased to a select clientele. Some of these are Keralites from both the salaried and business community who are living a plush life abroad in US, Canada, Europe, ASEAN and Gulf countries and are considering to relocate to India in the future.

SuperNova in Noida

And the options are mouth watering for luxury home buyer. From the Armani designed SuperNova apartments in Greater Noida which start at Rs. 20,000 per square feet to the Lodha residential tower in Mumbai, the total cost of the 180 plus projects launched in India in the luxury space over the last four years is estimated to cross 100,000 crores in value  with each project being owned by 100 to 200 select clients.

From a Kerala perspective although today the focus remains on mid segment housing, developers in consultation with us are already considering super luxury homes and planning invitations to select customers. Some of these buildings could start appearing in Kerala's skyline within 3 to 4 years.

As the affluent middle class dreams bigger, the real estate sector is preparing a delicious meal filled with savvy luxury amenities and services to tempt their taste buds.

Watch this space for more luxury development and updates in this segment in the coming months. As always we look forward to your comments and suggestions on our articles. Until next time. Adios!

New Trivandrum Real Estate Projects expecting completion shortly

If you are keen on investing in Trivandrum and are unsure of new developments then this is the right place for you. The following real estate projects are expected to be completed shortly in Trivandrum. One can easily see that Akkulam is suddenly the center of attraction for real estate projects in the city.

For questions or comments please reach out to us via our website www.nandanamconsultants.in

1. Ulloor Akkulam Corridor - The 3.6km ulloor akkulam corridor is expected to be completed in another few months as per official reports. The road is expected to cater to nearly 1000 vehicles, be pedestrial friendly with footpaths and have adequate width of around 16 metres.

2. Akkulam Township Master Plan - As a part of the new ongoing real estate developments at Akkulam, TRIDA is preparing the master plan for Akkulam. Close to 150 crores has been earmarked in budgets for developing roads leading to Akkulam.

3. New KSRTC bus depot at Anayara, Trivandrum - The new bus depot would be developed in 3.5 acres of land at Anayara. The land is a part of the original World Market plan at Anayara. The State Government plans to convert Anayara into a mobility hub in the future given its proximity to bypass and Veli.

4. Marriott Courtyard 5 star hotel at Akkulam -  Courtyard by Marriott is a business travel hotel category featuring amenities like Wifi and all facilities for business functions.

5. Four Lane road development - The Maruthamkuzhi Vattiyoorkavu and Vattiyoorkavu Nettayam roads are being developed into four lane roads. Other roads being developed are Sasthamangalam Vattiyoorkavu, Mukkola Vazhayila, Peroorkada Mannamoola

6. New Malls at Kazhakoottam -  Some of the new malls where construction has begun include SFS Cyber Mall in Front of SFS Cyber Palms, Spring City Mall. Both of these malls are at Kazhakootam.

We will be posting more fresh real estate updates on the city as and when announcements are made and the project starts moving on the ground. Keep a watch on this blog for more!

What the 2013 budget means for real estate and home buyers

The Finance Minister announced the annual budget in Parliament. Here is a closer look at Pros and Cons for home buyers and the real estate industry on the basis of the budget:

Pros for customers and real estate sector:
1: The higher fund allocation of Rs 6k crore rural and Rs 2k crore urban fund is likely to trigger greater home owernship.

2: Higher interest deduction of Rs 2.5 lakh on home loans upto Rs.25 lakhs is a positive for those who are looking to buy budget homes. The deduction is applicable on loans from banks and non-banking financial companies (NBFCs).

3: Infrastructure has received a major thrust, especially transport and energy segment. The steps to increase funding for roads, highways and other infrastructure will surely add more terrain on the Indian realty map taking tier 2 and tier 3 cities on new growth trajectory.

4:Opening up of the ‘External Commercial Borrowing’ (ECB) window for affordable housing will ensure better capital availability for developers of low-cost housing and boost the overall sector which is characterized by low margins.

We believe the budget would give a welcome impetus to budget housing, first-time home buyers and to some extent, boost demand in smaller cities like Trivandrum and the distant suburbs in metros.

Cons for Customers and Real estate sector:

1. The finance minister has also proposed to reduce the abatement in service tax from 75% to 70% for homes that cost Rs.1 crore or above, or are 2,000 sq. ft or more in size. This translates into an increase in service tax outflow, which means that luxury housing will become more expensive. For a city like Trivandrum 1crore plus apartments and villas are less than 10% of any given project at the moment, hence this would not be a significant influence for the local real estate market. However for metros where projects might be 50% or even 100% composed of luxury homes exceeding in 2000 sq ft, this announcement might act as a dampener in customer sentiment and not help the already slow sale rates in metros.

2. Another announcement is that tax deducted at source (TDS) of 1% to be charged on the transfer of immovable property is aimed at curbing speculation and improving reporting and accountability in high-value transactions. TDS is to be charged on the gross transaction value rather than net gains, hence sellers will have a cash-flow impact in situations where the sales are at a loss or at zero/negligible gains.