Even though the real estate market has slowed down in recent months, there are still plenty of homebuyers eager to make a purchase. Knowing how to prepare your home for sale, when to allow access for showings, and how you can offer buyer incentives will help you find the right buyer, even in a declining market.

Before you even put your home on the market, make sure that all basic repairs are completed. Nothing can turn off a prospective buyer quicker than loose railings, torn screens or missing hardware on cupboard doors. These easy repairs do not cost a lot of money. If a homebuyer sees that the little things are not attended to, they are likely to believe that the larger things are neglected too. Let buyers know that you have pride in your home by making sure that all of the small repairs are taken care of.

Keep your home clean throughout the time it is on the market. In a slow real estate market, it is important to have your home available to show at a moment’s notice. The more often your home is shown, the likelier it is that your home will sell. Keep your home available to your realtor and they will be able to show your home quickly to any buyer that shows interest.

Have your home staged by a professional. Home staging has become a booming business and a professional home stager will help you remove clutter and depersonalize your space. Prospective home buyers want to picture their family in the home, not yours and a home full of personal clutter will not show off the potential of your home.

Keep pets contained during a real estate showing and make sure that your cat litter box is always clean. Pet owners tend to get used to the odors caused by litter boxes and it is important that you remember to clean it every day. Nothing will turn off a prospective home buyer like a home that smells. Many people are fearful of dogs, especially ones that they do not know. Make sure that you either take your dog with you for a showing or put them on a leash outside.

Be realistic in your expectations of the price you will be able to sell your home. Forget about what could have been if you had sold it last year and focus on what your home is worth now. In a buyer’s market, buyers don’t have to negotiate much. Buyers know that you want to sell your home and a home that is priced too high is likely to be looked over. Ask a fair price for your home to avoid the need for too much negotiation.

In a slow market, hiring a real estate agent is crucial to get your home sold in a reasonable amount of time. Yes, there are ways you can list your home for sale by owner using the internet, but nothing beats the experience that comes fro a real estate agent who is able to take care of everything in order to sell your home.

Selling your home can be a stressful time, but you can be successful in selling your home if you remain patient, reasonable and flexible. There are buyers out there and the key is to find them and get them to fall in love with your home.

                                                                                     Courtesy Real Estate ABC.com

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Indian Real Estate 2020 is scheduled for June 27, 2008 in Mumbai spearheaded by Mr. Anuj Puri, Conference Chairman and Country Head and Managing Director, Jones Lang LaSalle Meghraj. The conference will take a leap into the future and crystal ball gaze at the prospective growth opportunities with the envisaged level of development in the Indian real estate sector. It will aim at capturing the challenges of the future – collaterally opportunities with urban planning as the single biggest challenge for the cities According to CII; the Indian real estate industry has reached a decisive stage following three years of phenomenal growth. The current phase heralds the emergence of maturity and a more following three years of sustainable growth phenomenal growth pattern.

                                                                               Courtesy: -ET Realty dt.27^th June 2008                                                                     

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“The increase in the interest rate has caused a steep rise in EMI which affects one’s capacity to borrow, and this in turn is likely to affect the demand of houses in the market. ET Realty explains the repercussions of RBI’s decision”

With Reserve Bank of India’s decision to raise the interest rates on overnight lending to bank, interest rates in the market are firming up. As the interest rate rises, the affordability of a person to buy a house goes down. For every one percentage point rise in the interest rate, equated monthly installment (EMI) increases by around 7% upon a 20-year loan. Such a steep rise in EMI due to increase in the interest rate affects one’s capacity to borrow. This is likely to affect the demand of houses in the market. Therefore, the prices of real estate are likely to be sluggish.

In the last two years, since 2006, because of rise in interest rates, demand for housing sector has remained sluggish. According to HDFC’s affordability chart, the price of a Rs. 25 lakh apartment has gone up by 20% - to Rs. 30 lakh in the last two years. But during the same period, the average income of a person from middle class has also increased by 20% to 6 lakh in 2008, up from Rs. 5 lakh in 2006. That means, the number of year’s income required to buy a house remained the same at 5 years in the last two years, which is also called affordability factor. According to HDFC, affordability factor has improved drastically since 1995 because of the rise in income of an average middleclass person, from around Rs.  1.2 lakh then to Rs. 6 lakh in 2008. But the value of property has marginally increased from Rs 26 lakh in 1995 to Rs 30 lakh But, because of low income and high property prices one needed 22 years’ income to buy a house, the property prices had witnessed an unprecedented rise in 1994 and 1995. But, it crashed between 1995 and 1999; one needed only 6.6 years’ income to buy a house. After that, till 2004, as the property prices stagnated while income rose sharply, the number of years’ income required to buy a house further fell to 4.3 years. That was the period when interest rates also fell. Improved affordability along with lower interest rates drove the property prices to rise sharply thereafter. In the next two year, the property value almost doubled. But as the income also rose sharply from Rs 3 lakh per annum in 2004 to Rs 5 lakh per annum by 2006, the affordability factor increased to only 5 from 4.3. that means, even in 2006 one could have bought a house with 5 years’ income. But by then interest rate rose sharply from around 7.5% in 2004 to 11% in 2006. This led to increase in the EMI by almost 25% on a 20-year loan. This affected demand drastically.

In 2007, there was a slight moderation in the interest rate and it fell to around 10.5%. But with the RBI again resorting to increase in the interest rate to contain inflation, the cost of borrowing will go up. Therefore, the demand is likely to remain sluggish. However, as the affordability factor remained at around 5, there will be a boom once the interest rates fall. The current rise in the interest rate is also due to global concerns like crisis due to sub prime home loan in the US markets. Bankers feel that such concerns would recede soon.

This would also help in bringing down the interest rates. A senior banker said that sooner or later interest rates are likely to correct. If that happens, the property prices are likely to look up. Unitech managing director Sanjay Chandra says the demand for the real estate is still good. However, at present, the demand is coming from the end users and not from the investors. He felt that once the interest rates correct, investors will return to the market driving the property value up.

                                                                                     Courtesy: - ET Realty dt.27^th June 2008

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Now the dream of owing property in Noida and Greater Noida might end up being just that, a dream. Land rates for residential plots in Greater Noida have almost doubled, while Noida Authority is planning to revise rates.

According to Lalit Srivastava, chairman, Noida and Greater Noida Authority, Greater Noida land rates have been hiked by 50-60 % in view of hike in land compensation. Residential land rates have been hiked from Rs 5900 to Rs 10,500 per sq m.

Lalit Srivastava announced a major rehauling of Noida and Greater Noida for Commonwealth Games 2010. We have decided to spend Rs 9000 crore for development of Noida and Greater Noida this financial year, he says. The board approved Rs 4009 crore for year 2008-09. Keeping in view the Commonwealth Games, several development projects have been planned for the city and Rs 3918 crore would be spent for that.

Land acquisition budget has been hiked from Rs 500 crore last year to Rs 1000 crore. This was necessitated due to hike in land compensation rates which are now Rs 1000 per sq m in Noida for developing villages on a par with developed sectors; rural development fund has also been hiked from Rs 16 crore to Rs 55 crore, said Shishir Singh, OSD, Land Acquisition Department.

For electricity infrastructure such as substations of 220 KV and other capacity, Rs 40 crore has been earmarked in the budget. The land rates hike proposal for Noida has, however, not been approved by the board. It has asked for a revision of the costing.

Rates were proposed to be hiked in view of hike in land compensation. We have approved Rs 300 crore for the land acquisition and Rs 200 crore for development, informs P K Agarwal, deputy chief executive officer, Taj Expressway Authority. As the authority has no funds, Rs 500 crore would be provided by Greater Noida Authority and Rs 1000 crore by the Noida Authority, which would be used for land acquisition and development purposes.

Due to constructions reaching up into the sky and roads widening by the day, property price in both Noida and Greater Nodia are also assuming similar dimensions. The migration trend which started with the IT and Software companies moving to Noida and Greater Noida is now being emulate by people looking for quality life. In all other developed sectors, the hike may go up 50%, sources say. The hike was necessitated to meet capital projects like Metro, bus services and flyover projects. The Noida Authority board meeting is scheduled to be held in May, 2008 to approve the revised rates.

                                                                           Courtesy 10^th May 2008 T.C.T

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Kochi will soon attain global status with the coming of a Rs 5,000-crore hi-tech city project. The Bangalore-based Shobha Developers have signed up an MoU with the state government for setting up this hi-tech city. Sobha Hi-Tech City will be an integrated city with focus on research and development, knowledge dissemination, information technology and pure and applied sciences. The city is located close to the National Highway 47 bypass near Maradu in Kochi. It will have 7 million sq.ft. of knowledge park, commercial space to provide business-friendly ambience, hospitality and leisure projects, entertainment and amusement facilities, a marina and residential complexes. The project will be completed in eight years and would generate 75,000 direct jobs.

                                                                                                          Realty Plus

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Genesis Infratech Pvt. ltd. is gifting Bhiwadi its largest mall. Located on the main Bhiwadi-Alwar Road the mall features a four-screen multiplex, a kid zone and a disco. Rajender Kumar Associates are the architects for the mall. The mall-cum-multiplex has been conceptualized to offer an international shopping experience with a strategic balance of hypermarkets, branded stores and a bazaar to cater to the needs of small retailers. Other added features include the vaastu-compliant parking space. The mall would also prove beneficial for the people of Gurgaon, Manesar, Dharuhera and Alwar.

                                                                                                                  Realty Plus

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Lehman Brothers Real Estate Partners has agreed to invest approximately Rs. 740 crores to acquire a 50 per cent stake in the initial phase of a master-planned project on the Western Expressway of Mumbai. Unitech Limited and their local Mumbai partners - the Western Expressway JV are jointly developing the project The initial phase entails development of one million square feet of office space out of the total developable area of approximately 18 million square feet. Lehman Brothers Real Estate Partners and the Western Expressway JV will each contribute 50 per cent of the construction costs.

World renowned architecture firm Skidmore, Owings & Merrill (SOM) has been retained to design the master plan for the broader project which envisions a 100+ acre mixed-use development containing office, retail, residential and hotel components. The JV aims to create one of the most high profile developments in Mumbai, with a unified character and management along the lines of Roppongi Hills in Tokyo, Canary Wharf in London, and Battery Park in New York

Courtesy:- HT dated:- 21^st June 2008

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THE HIGH DEMAND FOR RESIDENTIAL, INDUSTRIAL AND COMMERCIAL PLOTS HAS INCREASED THE CIRCLE RATES IN GHAZIABAD.

After Noida and Greater Noida, it is now the Ghaziabad’s turn to see a rise in land rates meant for residential purposes. New circle rates have been proposed to bridge the gap between real estate prices and existing sector rates. M P Singh, deputy commissioner (stamp), says, “after receiving the objections, district administration will revise the new circle rates. They are likely to be effective from June 16th. According to proposed circle rates, near NH-24, circle rates have been hiked from 80 lakh to 1 crore per acre in Mehrauli village.” The new rates have been hiked on basis of distance covered from National Highway.

Interestingly more than the residential colonies, there is a likelihood of a steep increase in the residential land circle rates. In Ramprastha, Surya Nagar, Chandra Nagar, Vaishali, Kaushambi, Indirapuram, Vasundhara, Kavonagar, Rajnagar, Nehru Nagar, Brijvihar, Lohia Nagar, Patel Nagar and Rajendra Nagar the new circle rates have been hiked between 20% and 58%. The existing circle rates of residential plots range from Rs 12,000 to Rs 25,000 per sq mtr.

The new rates will be Rs 15,000 to Rs 32,000 per sq mt. For commercial plots, the circle rates have been hiked from Rs 20,000 sq mt to Rs 80,000 per sq mt. The new circle rates have been revised on the basis of total number of registrations of documentation in last 2-3 years. Commenting on the new circle rates, S K Divedi, vice chairman, Ghaziabad Development Authority, said right implementation of new circle rates are more important to value the price index and area development.

Getting buyers to take a look at property is the biggest challenge in selling a property. For this reason, a little time and money is needed in making out a solid proof in getting property registration. With over 18 lakhs in population, Ghaziabad is emerging as a popular destination. It is already being looked upon as an alternative to Delhi. Kramchandani, vice president, Parsvnath Developers, says: Commonwealth Games brings a lot of hope for fast development.

Courtesy:- HT dated:- 20^th June 2008

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Akruti City, Omaxe, Sobha Developers, among other property developers, are pledging shares with lenders to provide additional security, apart from hypothecating properties to borrow funds, according to information submitted to the stock exchanges.

Promoters of Akruti, Omaxe and Sobha have pledged their shares with Indiabulls Financial Services, financiers like Dubai-based BankSarasin & Co and Credit Suisse as a liquid security for loans against properties.

“With prices of real estate stocks falling sharply, promoters have been pledging more shares to cover the margin. In the process, some of these promoters have pledged a large stake with Indiabulls,” said the CEO of a real estate fund. 

Real estate developers have been feeling the squeeze. Rising interest rates and slowdown have hurt sales, bringing down real estate prices 10 to 20 per cent across different micro markets. On the other hand, rising steel and cement prices have increased input costs for developers, while the meltdown in markets has hampered their ability to raise funds at home or abroad. 

Sources say Omaxe has raised loans of Rs 300 crore from Indiabulls and has repaid nearly two-thirds of it. On December 4, 2007, its promoters pledged 14.4 per cent stake, or 25,058,000 shares, with Indiabulls. “Developers have provided assets, such as large pieces of land as collateral, but as additional liquid security promoters have provided a personal guarantee or pledged a part of their stake in the company,” said a real estate analyst. 

Akruti City, which, sources say, has raised loans of Rs 200 crore from Indiabulls, has subsequently repaid nearly Rs 120 crore. On December 31, 2007, Akruti’s promoters pledged 5.86 per cent stake with Indiabulls, which increased the lender’s stake in the company to 8.24 per cent.  On February 7, 2008, the promoters pledged 2.38 per cent stake with Indiabulls. As a result, Indiabulls’ stake in Akruti went up to 10.62 per cent. 

On September 11, 2007, Sobha Developers, which builds offices for IT major Infosys, pledged 7.81 per cent of the company’s stake with Dubai-based Bank Sarasin & Co. A day earlier, the promoters had pledged 10.70 per cent with Credit Suisse.  The loans raised by promoters couldn’t be confirmed but Sobha’s company secretary said the loans went to the promoters and not the company.

Courtesy:- BS dated:- 19^th June 2008

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Finally it’s official. Delhibased realtor Parsvnath Developers will hold 38% stake in the Rs 1,800-crore Nanocity project. The company would be subscribing to the capital of Nanocity, which is a joint venture between Sabeer Bhatia and Parsvnath Developers. Nanocity will have projects relating to nanotechnology, biosciences, software product development, materials research etc.

A new company, Nanoworks, would also be set up, which would raise money through an IPO, expected to be in the region of Rs 1,000-1,200 crore. Bhatia is expected to land in India next week to sign an MoU with Parsvnath Developers. However, Parsvnath has denied any such development. When asked about the development, company advisor PK Jain said, “I am not aware of any such development. May be, you know more.” The Nanocity project, spread over 11,138 acres, is modelled on the Silicon Valley and will come up in two phases. Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and Nano Works Developers (P) Ltd had signed a joint venture to set up the knowledge city in Panchkula district in November, 2006.

Courtesy:- ET dated:- 20^th June 2008

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