Kochi metro is finally here! Great news for Keralites

Article as appeared in Hindu a few days ago on Kochi metro implementation.

The Delhi Metro Rail Corporation (DMRC) will implement the Rs.5,182-crore Kochi Metro Rail project with E. Sreedharan as its Principal Adviser. The decision seems to have ended all uncertainties about the implementation agency for the mass rapid transit system and Mr. Sreedharan’s role in it.

A decision in this regard was taken at a high-level meeting between the Centre and the State government, and attended by the Managing Directors of the DMRC and Kochi Metro Rail Ltd (KMRL), Mangu Singh and Elias George respectively, and Mr. Sreedharan, here on Tuesday.

Briefing reporters after the meeting, Union Urban Development Minister Kamal Nath said the DMRC would be fully engaged in the implementation of the rail project mooted in 2005 to decongest the State’s commercial capital. This is the first time the administration has allowed the DMRC to go out of the State of Delhi for the full implementation of a project. The Kochi project, he said, will be completed within the shortest possible time. (The Kerala government had announced a three-year time frame for the completion of the project.) The project covers 25.612 km in the Aluva-MG Road-Petta stretch. To persistent queries, the Minister said Mr. Sreedharan would function as Principal Adviser to the DMRC, stationed in Kerala.

He will be delegated responsibilities as determined by the DMRC in consultation with the KMRL.

Kochi Metro Rail Ltd plans to explore more options on water transport as a feeder to the metro rail system.

A Transit Oriented Development Committee will incubate a special purpose vehicle to focus on the development of the city’s waterways, which will be integrated with the metro rail system in Kochi.

This was being done under the aegis of UMTA (Unified Metropolitan Authority) planned to facilitate coordinated planning and implementation of the city’s transportation network, a press release issued here said.

The first meeting of the transit-oriented development committee, constituted by the board of KMRL, was held here and chaired by the Managing Director, KMRL, and Additional Chief Secretary (Transport) Elias George.

As a part of this initiative, it was also decided that the State Water Transport Department will commence trial services along a few urban waterways at Kochi by next month.

“Catalysing transit-oriented development is a key objective of KMRL, in line with the practices followed by modern urban metro systems. The objective is to ensure more balanced urban development away from the city centre as well as the provision of urban facilities close to Metro stations,” he said.

“In terms of transit oriented development, each metro station will act as a node and a catalyst for creating local urban facilities in the vicinity of the station itself,” George added.

It was also decided that a detailed planning exercise would be undertaken to prepare a transit-oriented development plan along the alignment of the Metro line.

This study will be undertaken by NATPAC and UMTC (Urban Mass Transit Company Limited) with the assistance of existing agencies like the Kochi Corporation, GCDA, The Chief Town Planner’s office and other transport related departments.

The engagement of the DMRC will be on cost-plus basis (cost plus mutually agreed consultancy fee). The Minister stressed the need to build (KMRL’s) capacity as he announced that the DMRC will assist it in building up its organisational capacity for executing the metro work and undertaking its operation and maintenance. (The KMRL is expected to take up the proposed extension of the metro rail project to the airport, Ka kkanad, Tripunithura, etc.).

Ideal Land Parcels in Trivandrum surge in demand. Do you own an acre?

With renewed interest in villas from real estate customers looking to invest in Trivandrum, land parcels in the city (1 Acre or more) have suddenly surged in interest in the last few months. This interest is predominantly being felt from the villa developers in the city as per the property management team of Nandanam Consultants.

Villa developers need lesser area compared to flats and land parcels can range from 1 Acres to 5 Acres for villas. Appreciation values for property being at an all time high, flats in cities like Bangalore have appreciated close to 12% for a majority of areas, while prices for villas have rapidly increased even going beyond 2Cr+. Trivandrum seems to be following a cue from that, although today most villas range from 50 Lacs to 75 Lacs and are in the affordable range.Since developers are mulling super luxury villas in Trivandrum, you could see villas in 1-5Cr range being launched within 2015.

From a property perspective a villa builder or the property management team at Nandanam Consulants evaluates a plot based on these parameters to judge if it is ideal for villa development:

Distance to CBD or Development Zone - A study done in Ohio (United States) for a period of five years and another done in Sydney (Australia) point out that distance to CBD is a critical determinant of real estate prices. Most researchers argue that this variable is more critical than accessibility although positive correlation does exist for the latter. However as cities become poly centric with multiple CBDs instead of being monocentric, real estate prices would be determined with respect to proximity to a particular CBD in the zone or the suburb. At present only MG road could be considered as the central business district within Trivandrum with a majority of banks, retail and business houses located in the area. With new retail and business hot spots emerging at Vellayambalam, Pattom and Kazhakuttam, new CBDs could emerge within the next decade in a poly centric model within the city and change the real estate pattern.

Promixity to Highways and Expressways - Properties located up to 1kms from major highways and expressways showed a much higher value and appreciation and are highly considered for villa development.

Proximity to Regional Shopping centers - Real estate which is in proximity to malls, and other regional shopping centers are also in favour of developers.

Shape, Amenities, Utilities and Nature of the Land - Shape of the land includes verification if the shape of the site is fit for building construction or not. Nature of the land includes ground water availability, height of the water table, if it is wet land or not i.e. if it the land is prone to flooding, load bearing capacity of the mud in the land, height of the rock bottom etc. General amenities usually considered by builders include water front, sea view, greenery etc.  Utilities include availability of water, electricity, telephone at the project site. The design team of the builders usually consider all the above four factors before deciding on the plot of land.

India Real Estate Recap for 2012 and Predictions for 2013

So what are the predictions for real estate growth in India in 2013? These are excerpts from an Interview with Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India

Real Estate Recap for 2012 

Among the top 7 cities of India, the capital value growth in Pune and NCR-Delhi was the highest, while Hyderabad and Bangalore saw a slower rate of capital value growth. There is still no price correction on the cards, but the quantum of appreciation definitely reduced significantly in all the top seven cities of India in 2012. Infrastructure deficit continues to be a key restraint for the growth of residential markets across India.

Overpricing has been an issue in Pune, Hyderabad and Kolkata, resulting in a relatively smaller share of absorption from these cities during 2012. For Commercial Real Estate, 2012 was defined by a notable decline in absorption of office space across most of the cities in India from the 2011 levels. However, the larger cities of Mumbai, NCR-Delhi, Bangalore and Chennai contributed to a healthy 72.5% of the country’s net absorption of commercial real estate.

Retailers in cities like NCR-Delhi, Mumbai and Bangalore continued to actively lease space in superior quality malls due to the limited availability of new space and the low vacancy rates in existing prime malls. The total net absorption of retail space across India projected for 2012 was 4.4 million square feet, led by NCR-Delhi and Bangalore (which together absorbed 2.6 million square feet).

RESIDENTIAL REAL ESTATE IN 2013

Although most of the cities of India will see an increase in residential launches in 2013, the southern cities of Bangalore and Chennai will witness a decline in launches as compared to 2012YTD. It is important to note that these two cities recorded a historical high in terms of the number of launches during 2012.

To illustrate - Pune has recorded an average of close to 6000 units per quarter over the past three years (2010 to 2012YTD). This is more than twice the average quarterly launches recorded during the period 2007-2009. As a market that has grown too fast in such a short time, launches in Pune will be moderate in the near term.

COMMERCIAL REAL ESTATE IN 2013

The fact that the major cities of Mumbai, NCR-Delhi, Bangalore and Chennai saw 72.5% of the total commercial space absorption in 2012 is a telling one, and indicates the forward path. These cities will grab the lion’s share of contribution in total commercial space absorption in 2013, certainly within the range of 74-76%.

We expect 2013 to bring a larger-than-usual number of NRI investors into the commercial space arena. This is because NRIs are currently enthused by the prevailing exchange rate benefits and the fact that commercial real estate capital values are still 15-25% under their 2007-08 peak levels

RETAIL REAL ESTATE IN 2013

The Government`s nod to FDI in multi-brand retail will be a major driving factor for increased activity in 2013. This, in turn, will positively impact the absorption of retail space over the next 12 to 24 months. The absorption is forecast to touch 6.8 million square feet and 7.1 million square feet in 2013 and 2014.

India`s major cities like Mumbai, NCR-Delhi, Bangalore, Chennai, Pune, Hyderabad and Kolkata will see the addition of close to 9.5 million square feet of mall space in 2013. Mumbai, NCR-Delhi, Bangalore and Chennai will together contribute 70% of the total retail space absorption.

One of the premium villa consultants in Trivandrum

Within a short period of time, Nandanam Consultants has become a premium and one of the most reputed real estate advisory service for booking villas in Trivandrum. With our excellent network with various builders who are operating in Trivandrum and zero brokerage charges for new bookings we have created a niche in terms of helping customers book the best properties at the lowest rates possible.

Our team helps customers with the following aspects of choosing the right villas:

Availability information on new and resale villas in Trivandrum from reputed builders  - Our marketing team constantly keeps track of new villa projects and resale villas in Trivandrum, so that you can avail the best offers.

Facilities  - We ensure projects we recommend come with a host of features and amenities that have been introduced to truly enhance the quality of life of people who live in them. 

Comparison between builders and projects - With our knowledge of quality of construction and feedback about various builders, we help customers match their budgets with quality, so that they make the best choices!

Exclusive Deals -  We are on most occassions the first and the only consultants to be aware of exclusive deals on new bookings in various villa projects in Trivandrum. These offers are not often advertised on the internet since some of these deals help builders get traction for a particular project. These deals are announced from time to time and last only for a very short duration. By leveraging some of these deals, our customers have often saved money on new bookings of villas in Trivandrum.

Interior Design Services -  Due to our excellent rapport with interior design specialists in Trivandrum, we help our customers build dream interiors for their villas with the latest techniques. Interior projects can range from few lakhs and can go up to 25 or 30 lacs depending on the customers choice and the size of the home.

Trivandrum among best Indian cities for real estate in 2012

As per our research Trivandrum is among the best cities in India in terms of returns in real estate investments in 2012. The list has been prepared using available indices like Nhb residex as well as using our property tracker across India compiled by Nandanam Consultants market research team in 2012.

The following major cities are considered for this list: Chennai, Hyderabad, Bangalore, Kochi, Mumbai, Delhi, Pune, Kolkata, Ahmedabad, Trivandrum.

Amongst the cities which recorded significant real estate returns last year included Chennai - 15 to 18% growth, Pune - 16 to 18% growth, Trivandrum - 14 to 17% increase in property rates, Ahmedabad - 12 to 13% rise in the last year. Other cities like Mumbai and Kochi remained more or less static in terms of price increase with less than 5% increase in the last year due to availability of excess inventory.

Today Nandanam Consultants is seeing a renewed interest in Trivandrum in terms of purchase of villas. Customers are expressing interest for budget and luxury villas in Trivandrum ranging from 50 Lacs to 1cr.

New Villa projects in Trivandrum - Book your dream home now!

With builders in Trivandrum having a tough time to identify ideal land parcels in the city, villa builders are coming up with projects in a wide variety of areas. Our team has tied up with all of these builders to give exciting deals on new projects for our customers. To leverage some of these discounts on villas in Trivandrum you can reach out to us. We have a professional team lead by alumni from prestigious colleges in India and abroad, offer only the best deals in the Trivandrum market and charge zero brokerage on purchase of new projects.

Chothys Builders

Chothys builders offers budget villas near Peyad with villas starting at just Rs.29 Lakhs. The project consists of 23 villas of sizes 1250 sq.ft (4 cents), 1600 sq.ft(4.5cents) 3 BHK ,1800sq.ft (5 cents) 4BHK, with  a good and peaceful ambience, Health Club, Children’s Park, reading room, place for recreation and indoor games. Chothys has also launched Sea Royal project at Thiruvallam which consists of 19 villas of 1500 to 2000 sq.ft.

Chevron Builders

Chevron builders after completion and handover of the  Chevron rivulet villas in Sreekaryam have announced Chevron Celestine and Chevron Brookville at Mannamthala and Vattiyoorkavu respectively.

Celestine offers an exclusivity of nearly 2 acre compound with walls all around and also with individual compound walls for each villa. The most enticing factor about Celestine is its distance from the rush of the city and the unique quality of giving the home owners a calm and serene living option. It would be an ideal home space for the peace-loving people. Technopark is only 10 kilo metres away while HappyLand is just about 7 kilo metres away.

Over the years, Chevron has been a name to reckon with in the realtor sector with two prestigious projects already sold out and another riverside villa of class amenities coming up at Vattiyoorkavu. Named Brookeville, this modern structure is near Saraswathi Vidyalaya.

Pankaj Builders

Pankaj builders new project Pankaj Enclave Villas have also received good response from customers. The project offering 2,3,4,5 Bhk luxury villas is located about 4 Km from Technopark.

Favourite Homes

Favourite Homes new project Irish Isle is also making good progress. It consists of luxury villas located at Pothecode in close proximity to the Kazhakootam Venjaramoodu bypass road. Another exciting project is Pebble Gardens located about 4kms from Mannamthala. Pebble Gardens provides you easy connectivity to Sreekaryam, Mannanthala, Kariyavatom and Kazhakkuttom - Vejaranmoodu Bye-Pass. Spread over 6 acres of lush greenery it consists of 60 designer villas in 5, 6 & 7 cents of land measurements.

Home loans likely to cheaper in 2013 giving push to realty

With the RBI signalling a shift in focus — from inflation to growth — interest rates are likely to start coming off from January. RBI stood pat on the key rates and ratios at its mid-quarter monetary policy review in December, belying expectations of some reduction. 

The indications of the inflation rate cooling down towards the end of the year and the moderating growth rate, however , resulted in the central bank infusing more liquidity into the banking system with a cut in the cash reserve ratio.

While this move cheered the markets and home loan interest rates witnessed the beginning of a downward trend, the more heartening news of deeper cuts in the rates can be expected in the course of 2013.

Banks are currently offering home loans on a par or just 25-50 bps higher than their base rates, which is around 10% for large lenders at present. A reduction in the key policy rate would compel them to reduce base rates.

Housing markets and Property forecasts worldwide in 2013

The economist on November 2012 carried an article which said  "House prices have stabilised since their 2009 trough, and have even made small but steady gains in recent months. Investors convinced that a full-blown housing recovery is under way—a big “if”—are looking for ways to profit from it "

In the United States, KKR, Colony Capital and Blackstone are among those amassing large portfolios of homes, mostly buying from banks’ foreclosure auctions. Keefe, Bruyette & Woods, an investment bank, estimates that around $6-8 billion is being lined up to invest in single-family homes, the most appealing part of the market.

The economist also predicted a world in 2013 for property as follows - Aside from the sickliest economies in the euro zone’s periphery, property markets will show some signs of life. House prices in America will rise by around 3%, up from 1% in 2012, according to the Mortgage Bankers Association.For commercial property, investors should expect average annual returns of between 6% and 8% over the next few years, depending on the region, according to RREEF, an investment adviser. The brightest prospects are in industrial properties in Asia, prime office locations in northern Europe and apartment blocks in large, coastal American cities. 

The predictions of the economist are in line with our earlier article on real estate forecast in 2013. With better market scenarios prevailing in the property markets world over, Indian investors can now move ahead with confidence in 2013 since growth prospects worldwide would ensure inflow of funds into the housing sector and thereby renewed confidence in real estate investments and lowering of chances of any bubble in the new year.

Making Prudent Real Estate Investments in Trivandrum

If you looking at making some prudent real estate investments in Trivandrum in 2013, then its extremely important to understand your overall financial goals and liabilities. Today home buyers fall into two distinct categories, those who are looking to own and live in a house and others who buy property purely for investment. This article is also a follow on for our previous article on real estate prospects in Kerala next year.

Customers who interact with us on a regular basis also crave for information and knowledge on what investments will help them meet their desired financial goals. Although we commented that real estate is an asset class which has delivered handsome returns on a regular basis, good investments in equity has also given returns to the astute investor. 

Some of our real estate investment advisors are also expert financial planners who encourage property investments that meet certain financial goals. With the sound financial knowledge of our founding team, customers have always gone back happier with excellent investments. In some cases when customers are devoid of the necessary funds to invest in property, we help them identify instruments which could be a combination of equity based mutual funds or loans or other financial mechanisms which they can leverage to raise enough capital in a period of a few years. In other cases, customers wanted to understand should they go in for a villa or flat in trivandrum. 

With an exclusive selection of hand picked villas and flats, our team excels in suggesting the right investment decisions to meet the desired goals. We also give a projection to our customers on what price points they could sell their property in the future, if so desired, for handsome returns. These suggestions are made using a combination of empirical and market knowledge as well as statistical modelling techniques. The excellent rapport we maintain with many of the reputed developers and builders, helps us project where the real estate in Trivandrum is headed.

Our advice to all customers who are looking to invest in real estate would be think long and hard and approach experts, so that your hard earned money is invested in the right properties and gives you the expected returns on capital.

Apartments in Trivandrum - New Launch Flats in 2012

So you are looking to buy a flat but are unsure of the new apartments in Trivandrum that were launched in the last few months. Then this ready reckoner list will help you.

We have also tied up with some of these reputed builders to enable customers get excellent deals on these apartments compared to the advertised rates. If you are keen on one of these properties you can get in touch with Nandanam Consultants to get the deal and book an apartment for no charge at all!

Our apartment index gives a weighted average rating to flats on sale, based on a number of parameters like price, location, builder, number of inquiries and so on, which ensures an optimum price for the apartment from the buyers point of view.

1) Nakshatra Vertica Apartments by Sree Nakshatra Builders , Sreekaryam, Trivandrum

2) Heera Sky Golf Apartments, Kowdiar - Pippinmoodu road, Trivandrum

3) Marutham Royal Wings Apartments, Opposite International Airport Terminal

4) Nikunjam Water Front Apartments at Akkulam, Trivandrum

5) SFS Stanford Apartments, Near St.Thomas School, Mukkola, Trivandrum

6) Confident Gold Coast Apartments Kumarapuram, Trivandrum 

7) Cordon Sreevalsam Apartments, Pipinmoodu, Sasthamangalam, Trivandrum

8) Ferntree Heights Apartments from SI Homes, East Mukkola, Trivandrum

9) Gayathri Apartments by Mansions Properties, Peyad, Trivandrum

10) Swan Hills Luxury Apartments, Gandhipuram, Trivandrum by Favourite Homes

 


11) Chevron Brookville Apartments at Vattiyoorkavu, Trivandrum

12) Artech Varsha Apartments at Nalanchira, Trivandrum 

Kerala Real Estate - What's to come in 2013?

2013 is fast approaching and real estate action continues in Kerala although not at a feverish pace as seen a couple of years back. The new year comes with a whole lot of promises for the real estate investor. With stock markets going in a see saw fashion through out 2012 owing to European crisis and slow recovery in the US market, only real estate and gold continues to be asset classes which have generated in excess of 10 to 15% return last year. Certain equity stocks especially in banking, fmcg and specific verticals have done well in 2012. Even as India's economic gurus foretell a future where inflation is expected to be around 7% and a full economic recovery seems far from certain across the world, the GDP growth expectation for India is less than 8% in 2013. Considering the above factors one would be wise to keep the bets alive on real estate sector in 2013.

From an India perspective markets like Mumbai received the jolts with thousands of unsold inventory creating panic in the Mumbai market, but since then market has kept steady there and not shown signs of a crash. Many investors who waited in the sidelines in 2012 hoping for a market correction or even a full blown crash have not had much to cheer about. Although prices have not shot through the roof as in 2010, or shown strong correction as in 2011,  2012 for real estate has been more of a steady year. Markets like Kochi have held steady and recovered from dips in 2011 and shown marginal signs of improvement in the last festive season.

Land sharks continue to rule the roost in most states with continued control of agricultural lands and large transactions which has an effect on property rates. With government bills (not yet passed) regarding usage of agricultural lands, real estate sector might see lot of new developments before general elections in 2014.

But developers today are much more cautious of announcing any project since investors are much more calculative than they were a couple of years back. We have also seen some incidence of developers not being able to keep their promises although not to the scale where many a projects remained undelivered in 2008 or 2009. Prudent buyers should always check for history of a developer before putting your money in any project even in 2013.

For Trivandrum, promises are aplenty in 2013. If you are looking to buy a flat within the city in Trivandrum next year, your choices would be far and few between. Most of projects are today being announced in areas like Menamkulam, MC Road, Sreekaryam which have at least a couple of acres of land that is required for a high rise project.For an investor looking to buy in the city in prominent areas like Kowdiar, Sasthamangalam etc. a good idea would be to lap up a flat sooner than later since prices are bound to rise due to fewer inventory in the coming year or so. New areas of development include Vattiyoorkavu and Peroorkada where villa and flat developers have shown renewed interest.

2013 also offers a good start for Trivandrum, with the opening of Technopark Phase 3 which should usher in a lot of new jobs and investment into the city. We had already mentioned earlier that commercial real estate does hold a lot of promise in Kerala in the upcoming future, with FDI in retail looking more and more a reality.  Although townships like the Bharitya city (recently launched in Bangalore), might still be 3 to 4 years away for Kerala, a lot of new project announcements from flat and villa developers are on the anvil as we approach 2013.

So the new year might after all prove to be an ideal one for existing investors to make money and new ones to enter the fray of real estate in Kerala!

What price should I pay for my new flat in Trivandrum?

When you have decided to buy a flat in Trivandrum the first thing that comes into mind is the price. Investors usually have a price in mind and they can pay up to 15% more (as per our research among prospective apartment buyers), provided they get more value or amenities than they had initially planned for.

When you are buying a new flat, you must take into account not only the square feet rates but also other charges like stamp duty, registration, car parking, water supply and electricity deposits, maintenance and amenity charges, plus additional cost for furnishing or interior decoration.

Pricing for flats works with different builders in different ways. Most builders start out on projects to make a projected return of 15 to 20% by the end of the project handover. Remember the builders liability ends only once the handover has taken place for a new project and the apartment association takes charge of maintenance. This usually happens about 3 to 6 months after project completion. Most developers would manage the property and premises until this handover happens. These costs could also be substantial for the builder depending on the size of the project.

You would have also noticed that builders roll out schemes like zero booking offer (no price on booking your flat) and pre launch prices which are about 10 to 15% lower than launch prices. Prelaunch offers can help developers build the initial funds needed to kick start a project. Usually once about 25% of the project is booked, the developers tend to increase prices by another 15%. Prices then tend to remain stable till about 75% of the project is booked when the developers have more or less achieved breakeven. After this point the customers do not have much negotiation power with the developers as prices would more or less be fixed and developers would be trying to maximize profit at this point.

Thus understanding the historical pricing is critical if you want to negotiate your prices and decide on the best price to pay for your flat. Experts like Nandanam Consultants with historical knowledge for a property helps customers pay ideal prices for apartment projects.

Why even a 1% rate cut on home loans matter

Why does even a small cut in the home loan rates make such a substantial difference? If you have dismissed minor changes of 0.5% or even 1% on your home loan rates when your bank or HFC sends you an intimation on the change, think again.

How a 1% can make a big difference?

Going by simple maths, a rate cut of 1% on a Rs. 90 Lakh loan can mean a savings of Rs.15 Lakhs over a 20 year tenure of the loan. Banks also offer teaser and fixed rate loans which have their own nuances. Usually novice customers choose loans primarily based on the interest rates offered by the bank.

The table below gives a good illustration of the same.

Loan  amount (Rs)	Tenure (years)	Saving on interest rate	Saving amount saved (Rs)
50 lakh	20	1%	7.94 lakh
50 lakh	15	1%	5.5 lakh
90 lakh	20	1%	15 lakh
90 lakh	15	1%	9.9 lakh

The good part - If you are trying to save tax, home loans can also offer up to Rs.1,50,000 tax exemption to customers for the interest paid component of the loan and thus reduce your taxable income.

Why should you understand all aspects of your loan?

Take the case of this customer, who went for a bank loan with a government run bank in 2011 at a rate of 10.5% for a 10 Lakh loan. Over the last year the bank changed the home loan rate to more than 13% and to the customers disillusionment, this was done without any intimation. In the end the customer had to run from pillar to post to shift his home loan to another private bank which was currently offering a lower home loan rate.

One has to keep in mind foreclosure, franking charges, processing charges and a host of other things when choosing your loan. Also the fact that the interest on a home loan can almost touch the loan itself by end of its tenure for a 20 year loan, one has to devise good investment plans to pre-close and start paying off the prinicipal in the initial 10 years of the loan (which is when you get the maximum benefit). Pre-closing later than this offers little benefits.

For further questions on which banks to go for your home loan, what factors you must consider etc. you can write to us at nandanamconsultants@gmail.com and get a free consultation or meeting with our experts.

How to buy a flat? Beginners guide to buying a flat

So you are ready to buy a flat, but not sure exactly as to how you want to go about it. This beginners guide presents you the things you must consider if it is the first time you are buying a flat. Many of us might get lured by the glossy booklets provided by the developers and are contented with the exteriors and the location of the flat.

Like any property transaction, buying a flat involves a considerable amount of life savings for any individual. Thus the following three questions must necessarily be answered: How? Where? and What? 

____________________________________________________________________________

How should you buy your flat? How involves the kind of process involved in buying a flat -once you have short-listed the apartment of your choice. 

Documents to be verified while Buying a Flat

Land Ownership Documents

Usually before constructing a flat the builder can operate in two ways - either as the land owner or as the developer. As a customer you must consider if the land ownership documents are available with the builder or not. Other items include the total built up area (Saleable area), common area etc. which the builder should inform you about. For more information on saleable area, carpet area, super built up area and how you can differentiate among apartments based on payment plans and undivided share of land you can read this article.

Approvals from Local Bodies

The builder should also obtain approvals from the local body, the Pollution Control Board, Fire and Rescue department's Fire NOC (No objection certificate), Local body building permit etc. You must also understand if the land tax receipts, building permit certificate has been obtained by the builder or not.

Land Title

The land title will be in possession of the builder and the customer can ask the builder for it to ensure that the land owner does not create an issue later about encumbrances.

Electricity and Water Receipts. Apartment Association

Once you occupy your apartment you would need to get receipts for electricity and water deposits, building tax etc. and the builder would do an ownership change to you. The builders liability really ends only when the apartment owners association has been formed and the maintenance of the flat has been handed over to the association. The hand over usually happens 3 to 6 months after the flat becomes ready for possession.

________________________________________________________________________________ 

What should you look for in the flat and amenities? What refers to the kind of flat you are trying to purchase. A flat is not just a space for you and your family but it comes with a host of other features. You must go through all these attributes of a flat to ensure nothing has been missed out. Amenities you must check for: 

Car Parking - How many car parking spaces do you get? Is it included or does it come with an extra cost? Is it a covered or non-covered parking? Would you get more that one parking if requested?

With the trend of families owning one or more car parks, car parking could become a significant cost if not thought about when you buy a flat. 

Fire Safety - Fires in apartments do occur even if rarely. Fires can happen due to electrical short circuits, gas explosions etc. and can quickly spread in apartments which are spaced close to each other. Do consider if your flat is equipped with fire safety measures like CO2 fire extinguishers, proper fire exists for the movement of people as well as all it abides by the rules as laid down by the Fire department in your local area.

Air Conditioning -  Do you have provision for split air conditioning? Is air conditioning centralized or is it present in all bedrooms?

Water Supply: Is water provided through sump and over head tanks? Is their provision for rain water harvesting? Does water come for borewells or is it supplied by the local corporation?

Telephones - Is there wiring for telephones in bedrooms, drawing rooms in the flat ? Will it cost for additional wiring for your apartment?

Generator - Is there a back-up generator for the flat in case of power outage? What is the load restriction in an apartment during power outage? During an outage is power available only in flats or will lifts, gyms and other facilities work as normal.

Electrical - Are there adequate number of fan and light points in your flat? Will the builder fix MCB or ELCB (Circuit Breakers) and does your flat have an independent light meter or is common to the whole building?
________________________________________________________________________________

What if you are buying based on a sample flat ?

Although seeing is believing and experiencing your new home through a sample flat might be a pulsating experience for a home buyer, there are fallacies with this approach.  A sample flat is one of the marketing techniques used by builders to convince customers of what they can expect when they get to live in their proposed house.

For full list of factors to be considered while seeing the sample flat read this article.

______________________________________________________________________________

Where should you buy your flat? 

Research studies conducted across the world, especially in developed economies, have used multiple methodologies to determine real estate values and the parameters determining. Some of these factors which lead to appreciation for your flat based on your location include:

1. Access to Light rail transport (LRT)
2. Distance to Central Business District
3. Comparable Sales Approach
4. Proximity to Regional Shopping centers
5. Promixity to Highways and Expressways
6.Clustering 

To read more about these individual factors you can read this article on locational factors. 

Land prices in Kerala: Investing in plots

Although interest in acquiring land in Kerala has diminished since early 2008 to the recent past, partly due to significant increase in land prices, but also since good plots are no longer available within the reach of many buyers in Kochi or Trivandrum.

A look at google trends for land prices in Kerala be it Kochi or Trivandrum will clearly put this case to rest. Not many are searching around for land anymore, but residential land still is a coveted investment for many due to the security it offers of eventual appreciation.

When we analyzed land prices in kochi over the last couple of years, when prices have been relatively stable, the areas which have appreciated quite a bit include Elamakkara North; Podukalavattom; Vaitilla; Amaravati (Edapally Zone) and areas Fort Kochi Vili; Karugapalli; Vennala; Mammankalam (Central Zone). Though putting forward actual land prices in each of these micro markets is out of scope for this article, one thing is rest assured. People are today willing to place their bets on land than on other forms of investment owing to the magnitude of returns.

Though the Kerala government has put forward a tool to estimate the fair value of land not many can use the tool at this point since land deals at a local level continue to be managed by micro market dynamics, upcoming developments like Kochi metro and also unscrupulous elements who might significantly alter land prices just to make a quick buck. For a investor looking to buy land, a good understanding of the local market landscape is recommended before paying up so that you dont end up regretting later.

Options aplenty for those looking for luxury villa or house in Trivandrum

In the past few years many a villa developers have made Trivandrum their home. For those seeking a luxury villa and having budgets in excess of 75 Lakhs or 1 Crore, options available are many and varied in Trivandrum.

When it comes to Trivandrum villa developers are combining aesthetics, design and culture in a multitude of ways so that it appeals to the Malayalee who has dreamt of a home with classic luxury couple with traditional looks. Homes in Trivandrum from various builders are commonly found in the 50 to 75 Lakhs bracket, although those looking for plush villas above 1crore definitely have many more options.

Cities like Bangalore today boast of villas which launch in the range of 3 to 5 crores for a reasonably sized plot of land in residential areas like Indiranagar, Whitefield, Domlur etc. While villas in these regions used to be available at close to 1Crore a few years back around 2007, growth and demand for luxury villas has been both profound and kind of unstoppable. A large influx of NRIs settled abroad seeking new haven in Bangalore along with an ecosystem of venture capitalists and high profile business men has been one of the reasons for this demand. Some villa projects also are launched on a invite only basis for select community of wealthy and well known names in the society.

While Trivandrum is at least a few years away from this kind of a phenomenon, demand for villas has been creeping up all the time. For someone looking to invest 1crore or more he or she could choose from standalone houses in 15 or 20 cents of land with modern amenities, or villa projects in a gated community with latest in construction and design, and even plush four bed apartments or pent houses available in a few projects.

Investment in villas or homes in good locations is always profitable with land appreciation year on year, but gated communities also offer the dual benefits of common facilities like swimming pools, kids play area, gardens, play area, party halls and so on which may not be present in a individual house.

Builders in Trivandrum - Differentiating among builders

Ever since real estate took off in Trivandrum in early 2000's  more and more builders in Trivandrum have joined the bandwagon and today over 50 are active in the construction market. The full list of builders who are involved in construction projects in Trivandrum are listed below in alphabetical order.

While close to 75% of the builders are engaged in constructing apartments, the rest are involved in constructing villas or both apartments and villas.

A

---

Adonai Shelters, Alif Builders and Developers, Anvita Builders, Archives Construction, Artech Realtors, Asset Homes, Astride Builders, Aswathy Housing

B , C, D                                                                               

---

BCG Builders, Big InfraTech, Bhageeratha, Chevron Builders, Condor Builders, Confident Group, Coral Group, Cordial Developers, Creations Infrastructure, Desai Homes  

E, F, G, H       

---

Favourite Homes, Future Foundations, Goel Ganga Developments, GrandTech Builders,  Hamnet Builders, Havens Builders, Heera Group, Heritage Builders

I, J, K, L

---

Keratech Builders, KGS Developers, Kottooran Constructions, Kristal Group, Lotus Properties

M, N,O

---

Mansions Properties, Marutham Developers, MIR Realtors, Muthoot Housing, MYS Builders, Nikujam Constructions, Oceanus Group, Olive Builders

P, Q, R

---

Pankaj Builders, Powerlink Builders, Prime Property, PRS Builders, PTC Builders, RDS Project, Relcon Properties

S

---

Samson and Sons Builders, SFS Homes, Shanoor Projects, SI Property, Silver Castle Constructions, Sivahari Builders, Sivaji Builders, Skyline Builders, Sowparnika Projects, Sree Dhanya Homes, Sree Nakshatra Builders, SRK Group, Sun Projects

T,U,V, W, X

---

Travancore Builders, VCast Builders, Veejay Properties, Vijaya Realty, Welcare Group Builders

So what differentiates one builder from another? When we reviewed over 250 projects across various builders in Trivandrum a visible difference was in project management and customer satisfaction.

Similar to any project - be it building software or a small car, the efficiency with which the project is managed can have a huge effect on the end costs of the project and the final output. In the construction industry, well managed projects usually deliver on time and the promised quality. Thus customer satisfaction is more often than not in direct correlation with the project management skills of a developer.

Then there are other factors including interaction with customer at various touch points, the quality of finishing used, the transparency in dealing with the developer as well as providing periodic updates on the progress of the project which could be used as benchmarks to differentiate one builder from another.

For further information or to compare various builders in trivandrum you can check out our website: http://nandanamconsultants.in/builders-in-trivandrum or write to us. We would be happy to hear from you.

Affordable Housing - A wave that might change Kerala's real estate future

When real estate developer Xrbia recently launched a 170-acre housing project in Hinjwadi, a suburb on the outskirts of Pune in Maharashtra, all the 3,400 apartment units were sold within a week. The biggest unit in this apartment complex was 550 square feet and the smallest was close to 250 square feet. The units were priced at Rs. 22 lakh (around US$40,000) and Rs. 9 lakh (US$ 16,000) respectively.

Could similar affordable housing projects mean the new dawn and wave of reality that could change Kerala's market landscape in the time to come?

Definition of Affordable Housing

When we say affordable housing, we mean homes which cost less than US $40,000 or less than 23 Lacs (in the current scenario). The example above shows the demand-supply gap in the affordable housing segment in India]. People sometimes physically queue up under the sun to apply for allotment of these houses. The ministry of housing and urban poverty alleviation (MHUPA) defines affordable housing for the middle-income group and below as one where the equated monthly installment (EMI) or rent does not exceed 30%-40% of a resident's gross monthly household income.

Whatever the definition of affordable housing, no one disputes that there is a huge shortage in this segment. A report by global property management firm Jones Lang LaSalle (JLL) points out that according to MHUPA, the shortage of urban housing in India at the end of the 10^th Five-Year Plan [2002-2007] was around 27.1 million dwellings to serve 66.3 million households.

How do you make this dream a reality?

Public Private Partnership

One of the ways in which housing can really be made affordable is through the public-private partnership. This is a good model to cater to the housing needs at the bottom of the pyramid but this is not the way it is happening at present. Traditionally, the big developers in Kerala and all over India have focused on the high-end and upper-middle segments of the housing market as these fetch high margins. The slowdown of 2008-2009 was a wake up call for developers when the market for high-priced homes contracted, and many companies saw an opportunity in lower-income segments.

Leading developers like DLF, Unitech, Tata Housing, Purvankara, Omaxe and others announced new projects in the Rs. 20 lakh per unit category across India in the last few years. With more developers entering this field this has got to be the sunrise sector and we expect it to increase multiple times.

Affordable homes can give good returns to Developers

Developers need to buy land on the outskirts of the cities because it is cheaper there. More importantly, they need to treat this land as inventory. Cycle times must be short and all the units must be sold and constructed at one go. Further, the units need to be small in size and well designed for efficient use of space. Done properly developers can get decent margins of around 20% while the IRR [internal rate of return] can be as high as 40% for these projects.

To net this out if the government takes the initiative to remove the roadblocks, the segment could move to the fast track. If infrastructure is developed outside the city limits, then the market forces will ensure steady supply and ensure that affordable homes turn into reality and a new wave of the future in Kerala.

Property in Trivandrum - Nandanam Consultants

When Nandanam Consultants was started with a small team and a humble vision to help customers buy and sell property in Trivandrum we did not expect the journey to be so rewarding.

With property transactions across flats, villas, plots, and houses, Nandanam Consultants has become a name to be reckoned with in the Trivandrum real estate market in a short period of time. Our differentiated property services and network with leading builders ensures the customer is the real winner at the end of the day.

How do you benefit?

For someone looking to buy a home, the buying process is not only a financial transaction but an emotional one. Buyer studies conducted by us across home buyers in various cities seeks to understand the buyer journey across the cycle from need to short listing to purchase. So while buyers usually decide on a deal based on available information, advice from friends and family as well as gut instincts sometimes the purchase does go awry. More often than not a unidirectional message from unscrupulous brokers or those looking to swindle money leads to a buyer regretting a property decision at a later stage.

When we wrote down and analyzed the buyer journey it was evident that price wasn't the sole or even  the most important criteria. The real word that defines this was Value that a buyer derives. This was in the form of emotional satisfaction, appeal in front of the society and family and a host of other factors.

So when customers come to us looking for property we broaden the horizon and define the value they get from a particular transaction. Usually price gives the peace of mind to begin with but all the other factors start to play a much more important role once the transaction starts sinking in.

Can I save money?

Of course you can. The way this works is most property buyers approach builders for a new flat or villa and try to negotiate their way from the published rates. This puts you at a position where you don't have a reference point on where transactions are being closed. With complete information on historical transactions for a given project our team can pin point the right price for a project. This can help save hundreds of thousands of rupees in every transaction for the customer.

Plus our deep connect with builders ensures we are abreast of new launches and discount offers running across projects.

How do you know Trivandrum property prices so well?

Equipped with some state of the art technology for statiscal modelling along with the best minds in the real estate industry, we conduct regular surveys and studies of the market. We not only speak with builders, banks and financial institutions but also customers who sell and buy property across Trivandrum. This not only gives us a birds eye view of what is happening but also a detailed review of micro markets in Trivandrum. Thus our customers benefit from the utmost fair and reliable pricing for their property transaction.

For further information on properties we deal in we encourage you to browse our website www.nandanamconsultants.in

Kerala Property: Kochi shows signs of upswing after period of lull. Trivandrum not too behind.

If you go by the residex index published by NHB on a quarterly basis for property movements, the Kochi property market is now back on an upswing and the Trivandrum property market is not lagging behind either. We have tracked the price movements in Kochi and Trivandrum property on a regular basis over the past few quarters and Kochi has reported stable prices

Residex Index Levels in India

Across India cities like Chennai, Jaipur, Delhi, Mumbai have reported upswings in prices. Barring Chennai where property rates have climbed 50% in the last couple of years on a year on year basis and over 200% in the last 4 years, most other markets have reported marginal upswings or exhibited stable prices.

Kochi Property Market and Movements

From levels of 72 on a scale of 100, the index for Kochi has climbed back to 82. What this really means is property prices are back to the 2011 levels (spurred by this 11% growth) and indicates a tendency to climb further. The growth could be accounted party due to the festive season of Onam which has increased bookings and the investor friendly announcements made by the government and efforts to bring Kochi metro back on track.

The real beneficiaries of the property price rise in Kochi has been areas like Elamakkara North; Podukalavattom; Vaitilla; Amaravati (Edapally Zone) and areas Fort Kochi Vili; Karugapalli; Vennala; Mammankalam (Central Zone). The edapally area has reported price rise of 25% last quarter and the Central zone has reported price rise of 33% over the last quarter.

For property investors in Kerala, the news of a stable market or upswing in Kochi is both a relief and also a motivator. Many have believed in the so called bubble in the property market in Kerala for long. And we have also written extensive articles analyzing the nature of this bubble. Although the global recessionary trends and the exodus of Gulf Malayalees due to dearth of jobs has put a dent on growth in prices in the state, Kochi seems to be the leading indicator of where the markets are headed with respect to Kerala. With lots riding on Kochi metro and other projects announced during the Emerging Kerala forum conducted in September 2012, real estate owners and investors would be heaving a sigh of relief with the results of the Kochi residex index. 

Trivandrum Property Market and Movements

In the case of the Trivandrum property market, although residex is not officially reported by the NHB, our research with leading banks and financial institutions conducted in the city, has revealed that property transactions are happening on a consistent basis, although not at a rampant pace as was seen in 2010. Property buyers are making much more prudent investments considering factors like location, rent, quality, previous track record of builders and other aspects.

This is a good sign as it puts the developers and the customer in a win-win situation with the real buyers stepping in instead of investors. As mentioned in our previous articles, the choice of investment in property be it villas, flats or land, requires its due consideration and one should take it into account all factors before making a decision.

Projects like Trivandrum Monorail or the Vizhinjam Transhipment terminal would put Trivandrum's real estate growth on a different trajectory all together, although they have seen many a hurdles and progress on them has been slow or non existent. Any of these projects taking off could see a spurt in prices and thereby smiles on the faces of many a happy investor who bought property in Trivandrum during 2012 or 2011.However one would have to wait and watch to see if any significant upswings in price movements happen in the near future due to other macro economic factors.

For comments, queries or suggestions on this article write to our market research or editorial teams at nandanamconsultants@gmail.com. We would be happy to hear your feedback and will try to respond at the earliest.