Common Sense : Basic Things To Check About Property in Mumbai

BASIC STEPS:

  1) Check for rate of property currently going on in that location by asking few people/agents etc so that you will not land up putting up more money in the deal.
2) Check if the home you purchasing has well maintained society registered properly so that most of the legal matters are taken care and you are at lower risk of being cheated.
3) Check both Original documents and also previous sale docs (if any) before giving token money for the deal.
4) Check if that property can get Loan from banks, if not why ?
5) If property is very old (Example: 10 to 12 years) you can benefit and save money during paying stamp duty payment to be given. So pull out assessment letter for Municipal Corporation for same.
6) Check if the space area for Carpet, built up OR super built up.
7) Check if it CIDCO approved, or alternately if property is old then proper CC, Plan Copy and saat bara utara (7-12 utara) documents there with seller.
8) Check if all previous dues has been paid like (electric bill, yearly municipal charges for property, society charges) etc.
9) Ask your advocate to calculate required Stamp Duty and Registration Fees with advocate fees and be ready.
10) Property clearance note and no Objection certificate (NOC) from society is must before you register any property.
11) Do not try saving Stamp Duty charges as during litigation in most cases you cannot fight legally with it.
12) Its always a good idea to meet the society secretary of the property (flat) you purchasing. This will help you know some legal society pendings, share certificate related, maintenance related and NOC related to the seller.
13) Check the important documents before you give the token amount for purchasing that property, some of the documents are Society NOC, Name of electricity bill and Property tax receipt ( Known as ‘Gharpatti’ in Hindi), Name of the maintenance receipt, All the previous sequence of purchase/sell of that property agreement, Full plan copy (floor plan) of that building and the wing you planning the purchase, Check if the legal government stamps are seen clearly on same.
14) Most important : Spend on the 100 rupees stamp paper and get the signature, left thumb print with photo attached on the seller before giving the token amount and make the terms very clear on registration date and what if for some reasons the deals gets cancelled.
15) Check if the property was already mortgaged before and if the things are already cleared and settled with the final note of settlement. One best way is to check for all the sequence of original documents of the flat you purchasing.
16) If you are the first time buyer of say this is your first property to be purchased, keep some extra cash handy as you might need it to miscellaneous expenses like post registration, society charges to be paid extra to builder and some renovations etc.
17) Don’t rush for a property deal, Neither wait too long. If you find a deal interesting yet in low cost, find the valid reasons behind same. Common reasons are family dispute, urgent need of money for which the owner of flat sells at low cost, Or some litigation’s ?.
18) If you find the deal proper and have checked every aspects, Next is to do all money transactions in written on 100 or 500 rupees government stamp papers. Add a photo of seller, with signature and left thumb print across photo with all terms conditions with DATE written.
19) Hey how about a short video of your conversation ? Seems going far off ha ? Yet this can be real handy proof in case of any problems in money transactions of that property. Signature can be invalid, But a photo with left thumb impression or a video cannot be faked.
Things to ask to Builder before buying property Ask if builder has Title clear papers for property on which flats are built. Easy way is to ask for IOD (Intimation Of Disapproval) and CC (Commencement Certificate) which makes it clear that the property you are purchasing is built on undisputed land and is BMC approved.
Ask if he is ready to give Completion Certificate which is required during registration and stamp duty process and also during resale in some cases. This Certificate if and important proof of BMC clearance on building permissions.
Adding to above point, check if the property has OC (Occupancy Certificate) with builder, If not what are the reasons. Common reasons being the FSI of that property used in some other constructions. Property without OC faces bank loan problem for common man.
Ask if any well known banks are tied up with builder, If banks and financial institutes like HDFC, ICICI BANK, GIC etc are already tied up with builder it is a good sign of saving yourself from non well known and fraud builders.
Always take the first step by asking for sample flat and building plan, This will give you the look and feel of flat and the amenities and quality of tiles and other items used in kitchen and bathroom etc. Also ask and see the floor plan that gives the idea about surrounding and spacing.
Ask for, if any additional charges above the charges they show to you like any legal fees, parking fees etc which sometimes is not said in first meetings.
Ask when is the project getting completed and which month is the handover of property ? How will they Charge till then because this will attract PRE-EMI (A kind of interest charged for part payment of the loan borrowed from bank) this is an extra charge and not same as EMI. Get dates in written and terms if builder not able to give on time.
Ask the builder about the Carpet area and Total super built up area and what will be written in Agreement. Also check the height and directions of the flat.
Ask what all utilities and facilities are in built provided upon sale like Fans, Furniture in kitchen, Home UPS/Inverter etc.
At many far suburb locations of Mumbai like Nalasopara & Virar, some / many properties don’t have OC and instead get something called ‘Collector Passing’ certificate. This kind of properties are not entertained by leading banks, yet some small co-operative banks do sanction loans. Still, its a risky real estate deal.  http://www.jaghey.com
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Deutsche Bank to set up Global Processing Centre at Mahindra World City, Jaipur

MWC, Jaipur signs a total of 3 MoUs in one day Deutsche Bank, Tech Mahindra and QH Talbros

• Deutsche Bank’s centre to be spread over 2 lac square feet

Jaipur: Mahindra World City, Jaipur today signed an MoU with Deutsche Bank on the sidelines of the Resurgent Rajasthan – Partnership Summit’ being held in Jaipur. Other companies with which it signed MOUs to set up campuses include Tech Mahindra and QH Talbros. These MOUs entails that Deutsche Bank, Tech Mahindra and QH Talbros will establish their operations within the upcoming Mahindra World City at Jaipur. This has the potential to establish Jaipur as a truly global city and will help usher an era of economic growth and employment opportunities. Mahindra World City, Jaipur is being developed as a multi-product SEZ spread over an area of 3000 acres. Prior to the signing of MoUs today, Mahindra World City, Jaipur has already signed ten MoUs with leading organizations including Infosys & Wipro.

The Resurgent Rajasthan Summit is being organized by the Government of Rajasthan, Bureau of Investment Promotion and FICCI and aims to showcase the investment potential of Rajasthan & facilitate inward investments in the state with a special focus on Infrastructure, Education & HRD, Automobile & Manufacturing, Healthcare, Tourism & IT.

Said Mr. Arun Nanda, Executive Director, Mahindra & Mahindra Limited – “Mahindra World City, Jaipur is fast evolving as the favorite destination of leading national and international organizations eager to establish themselves in Jaipur, which is the gateway connecting North & East India to West India. We are delighted that Deutsche Bank, Tech Mahindra, and QH Talbros will set up campus. Given the advantages of an ‘integrated business city’ such as Mahindra World City, Jaipur, we are confident that more companies will follow suit.”

Deutsche Bank Deutsche Bank:

comes as an ‘Anchor Client’ at ‘Evolve – The NxtGn IT Park’. Deutsche Bank is a leading global investment bank with a strong and profitable private client’s franchise. With over 77,920 employees in 75 countries  and offering unparalleled financial services throughout the world we are not only leaders in Germany and Europe but are poised strongly to take the top spots across most geographies that we work in over the near term future including India. DB Operations International (DBOI), the global processing arm of Deutsche Bank group, today signed a Letter of Intent (LoI) with the Government of Rajasthan to set up a new centre in Jaipur, at the Mahindra World City. With this centre, the Deutsche Bank Group is significantly expanding its global delivery capabilities in India. The other centers, in India, are located in Mumbai and Bangalore. Announcing the opening of the new centre, Arindam Banerrji, Managing Director and Global Chief Operating Officer for DB Operations International, said, “DBOI continues to be the backbone of Deutsche Bank’s operational strategy with its strong focus on capacity and process re-engineering. Our growth plans for Jaipur are significant and we intend to commence recruiting in 2008. Drawing from the locally available talent, our new centre will create job opportunities in Jaipur and will also provide exposure to an international banking processing environment”.

Tech Mahindra’s proposed campus in Mahindra World City, Jaipur will span over 15 acres. This state-of-the-art flagship campus in North India will entail an estimated investment of Rs. 300 crores with an employment potential of 5000 people. Maj. Gen. S.K. Vij (Retd.), Vice President – Infrastructure, signed the MoU on behalf of Tech Mahindra.
Tech Mahindra, with a market cap of Rs. 12,600 crores employs over 22,000 professionals, servicing clients across various telecom segments, from its global network of 24 locations including 11 development centers and 13 sales offices across 14 countries. Tech Mahindra is assessed at SEI-CMMI Level 5 and PCMM Level 5. It is one of the only three companies worldwide to have been appraised for SSE-CMM Level 3.
Mahindra World City has one of the largest IT/ITeS centric areas under development in India. The total area spread over 750 acre is under development and has already attracted top IT/ITeS companies such as Infosys, Wipro, Nagarro and Truworth. Mahindra World City is also developing a Technology Park ‘Evolve’ in a campus of 25 acres within the SEZ, which will offer built-up space to IT/ITES companies on lease. Thus, on offer are both developed plots for IT companies to develop their own campuses and “plug-and-play” space for companies looking for an immediate start of operations. ‘Evolve – The NxtGn IT Park’ will provide plug n play infrastructure to IT/ITeS companies complete with all amenities and state of the art features.
QH Talbros: Rs. 750 crores organization, signed an MoU with Mahindra World City, Jaipur to set up a Light Engineering Zone and has earmarked Rs. 50 crores of investment for this SEZ manufacturing. Talbros is a leading Auto Component OEM supplier to market leaders like Mahindra & Mahindra, Maruti Suzuki and Tata. Mr. K. Sairam, QH Talbros Group COO signed the MOU on behalf of Talbros. It is estimated that Talbros will employ 300 skilled and semi-skilled workers at its Jaipur facility. The company already has 4 facilities in the country.
After the successful launch of the IT and ITES zone, Mahindra World City has launched two other zones as part of its first phase of development. Zones for Handicraft and Light Engineering companies have been launched. Besides Handicraft which has already attracted 4 companies with whom MoUs have already been signed, an exclusive zone for Light Engineering companies including Automotive and Auto Component manufacturers has also attracted large engineering companies.


About Mahindra World City, Jaipur

Spread over an area of 3000 acres, Mahindra World City, Jaipur will provide corporate a world-class platform to expand their businesses to compete globally. The Mahindra World City, Jaipur is being developed as a multi-product Special Economic Zone on the format of an “Integrated Business City” and is a joint venture between Mahindra Lifespace Developers Ltd (a Mahindra Group Company and previously known as Mahindra Gesco Developers Limited) and Rajasthan State Industrial Development and Investment Corporation Ltd (RIICO, an agency of the Government of Rajasthan).
The SEZ includes exclusive zones for IT/ITeS Companies, Light Engineering companies including Auto and Auto Component manufacturers, Handicraft Companies, Gems & Jewellery Companies and Apparel companies. Besides these exclusive zones, the SEZ will also have a Domestic Tariff Area (DTA) for catering to the demand of domestic industries. Mahindra World City will also have a dedicated Logistics and Warehousing Zone for the manufacturing companies in order to provide complete end to end solutions. Social Infrastructure in the form of housing, education and health institutes, recreational zones, retail and hospitality centers also forms an integral part of the development. The company envisions to create an SEZ with ‘Walk to Work’ concept and to realize this the development work on Mahindra World City, Jaipur has already begun, with the custom office already functional and other development activities going full throttle.

Giving heritage homes a new lease of life- chennai

CHENNAI: The Great Indian Bungalow is dwindling faster than the Great Indian Bustard. Residences in the architectural style of the mid 19th or early 20th century are either giving themselves over to redevelopment or rot. The former’s fate lies with owners who are chary of having their properties  listed on heritage inventories. They worry that it might throw a spanner in their plans for redevelopment, even though a legal mechanism doesn’t currently exist to regulate such action.
However, the financial burden of repair and restoration does weigh heavily on some homeowners who resort to sale. Others have found ways to monetise their assets by leasing them out to commercial establishments, often on the condition that the structure stays unmolested and amenities if added coincide with the original architectural style.
An example is Luz House in Mylapore, built in the 1700s by dubash Moddaverapu Dera Venkataswami Naidu (cricketer Buchi Babu, his grandson, grew up here). The house, built around an 18th century Portuguese barracks, is being restored to accommodate a franchise of a yoga chain.
“We wanted the place, which had fallen into disrepair, to be used by people whose ethos matched the traditional essence of the building,” says Abhimanyu Prakash, proprietor of Luz House, who has recycled wood, bricks and tiles from the original estate.
Architects call it adaptive reuse, the process of reconciling old building stock to new requirements. Conservation architect Sujatha Shankar worked on such a house for Sri Krishna Sweets. “The property in Puruskawalkam was a 100-year-old building called Natana Vilas, and the client wanted to convert it into a sweet shop and restaurant. We agreed on minimal structural intervention,” says Shankar, pointing to examples of heritage buildings that were adapted to accommodate boutiques, spas, stores and restaurants.
Conservation architect K Kalpana agrees that the number of heritage homes adapting to contemporary use has grown in Chennai, and more would have joined the ranks if not for the gulf between owner and buyer/lessee. “The interface between the market and owners is poor,” she says. “Owners don’t know where to find the right clients and businesses don’t know where to look for properties.” No matter what the requirements of a contemporary business, an old house can be retrofitted with the works.
In the end, the toss-up between preserving a heritage house and redeveloping it is hard, given the difference between market value of land and rental value of the house. Only those won over by history will make a choice in favour of preservation.

Howrah Municipal Corporation announces partial waiver of property and commercial tax - Kolkatta

HOWRAH: With an eye on boosting revenue, the Howrah Municipal Corporation announced a partial waiver for property and commercial tax on Tuesday. Under the waiver scheme, no penalty or interest need to be paid.
The KMC has already enforced such a scheme and has benefited greatly, said Howrah mayor Rathin Chakraborty. He said the last board, controlled by the Left Front, bungled in tax collection, resulting in tax default of around Rs 200 crore. “The state is supporting us, but we must be self-sufficient. The tax outstanding will be collected without burdening civilians,” the mayor added.

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As builders fund parties, homes may be delayed - Bangalore

BANGALORE:

Real estate consultants caution that the ongoing polls could cause project delays as election financing and delayed approval processes are coming in the way of construction activities.
In an analysis of the connection between the property market and polls, Ramesh Nair, COO (business) at India's largest property consultancy firm JLL, says many developers who are funding candidates are delaying their projects due to the lack of liquidity.

"In every election season, money is sucked out of the real estate sector because most developers are either directly or indirectly connected to politicians," says Prashanth Sambargi of Mars Realty. Most often, the land aggregator or the primary landowners of a project have political links.

Delayed delivery of residential projects has become a major issue in the real estate sector. While in Gurgaon only one-third of the committed residential supply for 2013 was delivered, in Noida, only one-fifth was delivered.

Nair's assessment is that the property market has become a key election financier. "Given this situation, many developers cut down on new launches and focus on selling their existing inventory," he said.

The delay in launches is also directly linked to a slowdown in the approval process in the run-up to elections. "There seems to be a great deal of confusion with regard to granting sanctions as well as a general understaffing of qualified staff to close files," according to Alexander Moore, CEO of L J Hooker India.

Samir Jasuja, founder of real estate research firm PropEquity, says homebuyers, too, have adopted a wait-and-watch policy that, along with other factors, has resulted in a significant inventory build-up. JLL reports that Mumbai has an inventory pile-up of close to 48 months, Delhi of 23 months and Bangalore of 25 months.

"Some of the most vibrant residential markets, like Mumbai and NCR, have witnessed a drop in sales volume of nearly 50% and 30%, respectively," says Samantak Das, chief economist and research head at property consultancy Knight Frank India. He believes consumer sentiment will revive only in the third quarter of this calendar.

 

Better times ahead for Karnal

Karnal / Chandigarh

 

With the inclusion of Karnal and Jind districts of Haryana in the National Capital Region (NCR) recently, the region is about to witness an upsurge in its overall development. The pronouncement holds special significance for Karnal. The National Capital Region Planning Board (NCRPB) has taken the decision considering the need to progress beyond Delhi which is bound to open new possibilities for all 21 cities that are now a part of the NCR. Karnal, with its strategic location on the National Highway 1 (NH1) and huge socio-economic potential, can prove to be a perfect partner for Delhi’s plan for development. For Karnal it means a chance to let its highly-educated workforce explore the facilities of a metropolis and a significant rise in the employment opportunities in the city itself. The development will catalyse a partnership between the cities of the NCR with the NCRPB providing the much-needed infrastructure and platform for development. The NCR cities could pool their resources for economic and social development of the region. Currently, Karnal is home to national institutes for agricultural and dairy research like the Indian Agricultural Research Institute (IARI), Central Soil Salinity Research Institute (CSSRI), Directorate of Wheat Research (DWR) and National Dairy Research Institute (NDRI). Karnal is also known for its well-established rice processing industry. Being one of the agriculturally-rich districts growing foodgrains as well as horticultural crops, it has the potential of becoming the food processing hub of the region.

Positive pointsKarnal has the ability to absorb the influx of population which will come along with the industrial growth in the region. On the other hand Delhi's high population density at 11,297 people per sq km has an inverse relationship with the quality of life. While other NCR cities such as Panipat, Sonepat, Faridabad and Gurgaon are closer to the capital, Karnal offers a greater potential for growth. The city's well-developed civil infrastructure, availability of developable land, natural resources such as air and water, open green spaces and cleaner surroundings add to its attractiveness for residents of the NCR.The city offers housing facilities for all socio-economic classes with a current inventory of over 10,000 units available at relatively affordable prices. The lifecycle of real estate in Karnal is at a stage from where prices are bound to appreciate.In the last six years, real estate prices in Karnal have seen a near four-fold increase from around Rs 6,000 per sq yd in 2008 to Rs 22,000 per sq yd at present. With the average year-on-year growth of 35-50 per cent and the creation of a seamless connectivity with Delhi, Karnal will experience a significant capital appreciation in the future as well. Already the city is expanding with addition of new sectors and it is this potential that has attracted manyworld-class developers to invest Karnal. 
    

The pitfallsIn the current scenario, there is, however, an evident deficit in the political will to implement the Master Plan. If this continues, it could prove to be a dampener for the growth of real estate. For example, the delays caused by relocation of existing structures for the expansion of the NH1 and the regional road network have stalled real estate development in many pockets, affecting sentiments and the vitality of the market. Located along the NH 1, almost equidistant from Delhi and Chandigarh, Karnal will soon reap the benefits of improvement in connectivity with Delhi; uninterrupted flow of traffic, Mass Rapid Transit System (MRTS) and the proposed domestic airport. Yet, the movement of jobs, industry and human resource from Delhi NCR towards Karnal will depend on how quickly commuting-time is reduced between the two. Fast tracking the implementation of the MRTS, a prominent feature of the Regional Plan 2021 for NCR, can eliminate connectivity- related problems. However, if the case of Gurgaon and other NCR cities is any indication, the implementation of the same is bound to take some time. For plans to translate into reality for Karnal, a combination of persistent efforts and continuous supply of resources is required. Karnal's substantial scope for expansion, excellent educational facilities, esteemed institutions of higher learning and healthcare such as the Kalpana Chawla Medical Institute - all make it an ideal inclusion into the NCR. The move will not only benefit Karnal but can lead to a formation of a successful microcosm with potential to contribute significantly to the region's economy.

On a realty growth path in Ahmedabad

AHMEDABAD: Ahmedabad’s Real Estate market is on an upswing because of the huge growth of its industrial sector and the overall high rate of development, both in commercial and residential terms. Particularly, due to the industrial growth in the city, many new residential areas are being developed near the industrial areas and new Maningar is one among them.
New Maninagar is located in the southern part of the city. The real estate scenario is very impressive in this area and is likely to grow even more in the near future. New Maninagar is spread over a large area and is expanding day by day. A few factors which have contributed to this growth include the expansion of the Ahmedabad Municipal Corporation limits, nearness to the industrial area, increasing connectivity, robust development of other basic infrastructural amenities and the overall rise of Ahmedabad as a notable commercial and industrial hub.
The real estate sector in new Maninagar, which was far less developed before, has now turned tables. The construction activities and new real estate projects in this area have pushed property rates to new highs, but it is still very reasonable as compared to other areas of the city. As a location of property investment, it certainly has good prospects in store for prospective investors. Further, the area is showing rapid advancements in all sectors, right from education, housing and commercial spaces to entertainment and recreational facilities. There are a number of educational institutes in this area. A number of Gujarati and English medium schools are located here, which is also one of the reasons for the growth of residential realty market in new Maninagar. Besides this, the basic amenities like electricity, and water supply as well as efficient transportation system have provided a suitable background for the residential realty sector growth in this area.
Dr Jitendra Joshi, a prominent builder in the new Maninagar area, says, “New Maninagar has seen good realty development in last few years. Here, all kinds of projects are being developed but this area is mainly know for affordable housing projects. Due its proximity with the industrial area and development of many Small and Medium Scale industries (SMEs) nearby, the demand for residential reality is very high. Mainly the migrant population who wish to stay near their work areas and not travel much prefer to buy property here. Further, good transportation facility from this part of the city to other regions has also helped in the growth of the region.” Thus, overall, new Maninagar is an area which has bright prospects for commercial as well as residential realty market.

In and around Jaipur & other towns of Rajasthan

JAIPUR: With monsoon approaching and farmers gearing up to sow the next crop, the Jaipur Development Authority (JDA) has a big challenge ahead to take possession of remaining acquired land for the ring road project.

As the clouds of uncertainty continue to hover over the project, even those farmers who had surrendered their lands are preparing to sow groundnut and bajra after rain this monsoon.

Kisan Lal Chaudhary, a farmer of Chimanpura village, whose 40 bigha has been acquired, says, "We are prepared to sow the next crop. We have ploughed the fields, purchased seeds and dumped cow dung (manure) in our fields. "

A JDA official claimed that so far they have taken possession of 55% of land that is required for the project. However, the remaining farmers who have surrendered their land continue to hold possession and sow crops as the deadlock between them and the government in connection with returning of excess land continues.

Also, the farmers who have taken allotment letters are planning to sow the crop and in such circumstances the process of taking possession can be delayed by another four months. Meanwhile, a JDA official said: "We will not allow the farmers to sow the crops this time. And if required, we will take stringent action against them."

Badri Prasad, president, Ring Road Sangharsh Samiti, said, "There are 1,500 farmers and their 10,000 family members will be affected by the project. Entire land of every third farmer is being taken for this project. If he surrenders his land, there is no indemnity what they will do till the project is completed. So many farmers cannot be put at risk as uncertainty prevails.

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Selling real estate through social media: Is it helpful?

Developers and promoters have taken a wide-cum-creative turn in making themselves visible to the mass, and the tool they have used is the ‘Digital media’. To be more specific, Social media is ‘the’ tool. Real estate contributes majorly (up to 6%) to India’s GDP and uplifts the demand in other ancillary industries. And when it comes to marketing, the product that sells more is the one that is seen more often. The real estate players have adapted to this mantra effectively and have entered the social media to become prominent.
Why social media
The entire universe is active on social media and potential buyers seek ways to connect and interact with the developers. Active participation by the developer in answering to the queries raised by the buyer and constant interaction with the users makes communication channels open. The significant need is to build quality relationship with buyers by engaging and interacting eventually gaining their trust.
From setting up YouTube channel to hiring social media marketing firms in order to showcase walkthroughs of the upcoming projects by the former and to reach the target audience through effective marketing by the latter, real estate players are constantly working out the jigsaw to strengthen sales.
Few case studies
Recent study by Google India, says that the internet usage influences consumer behavior as at least 7 out of 10 buyers knows about the exact brand and model on which they plan to invest through online research. Tata Housing witnessed over 10 bookings in the first few hours of going live on YouTube and Facebook and Godrej Properties has recorded that 20 per cent of their sales comes from online pay. Social media websites such as Twitter, Facebook, YouTube and Flickr are commonly used by the leading developers for both B2B and B2C interactions.
Tata Housing recently found success in the three-day ‘Great Online Shopping festival’ where Google joined hands with the developer to offer houses to prospective buyers and encouraged them to book their new flat, by the company, online. Similarly, Tata Value Homes (TVHL) received almost 200 online applications within ‘just’ three hours on the occasion of National Home Buying Day.

Developer’s insight
Maintaining transparency between the buyer and the developer is the secret behind every online campaign. This is easily achieved through social networking. Today, developers use digital media to build communities of like-minded individuals to convey transparency through
• Brand news
• Videos of the progression and
• Project updates.
Upon this, digital media costs just one tenth of the conventional print and OOH (Out of Home) media platforms and still brings 40 to 45 per cent conversions. And, digital platform will stay focused on the target audience whereas the conventional media may fail in achieving it. This is also one of the major reasons for developers to choose digital platform.
The developers and promoters have realized the significance of social media and are optimistic about the future role of it in their vital growth. Developers are glad to form their own communities of customers, fans or even prospects online. If the current progress continues, developers will find an innovative growth.

Home prices begin to rise, signal change in real estate market mood

In recent months, real estate prices have shown an increase in 16 out of 26 cities covered by the country’s most authoritative residential housing price index, suggesting that prices may be finally bottoming out. 
Prices in Delhi and Bangalore rose during the quarter ended December 2013. In Mumbai, prices stopped falling for the first time since March 2013.
The Residex, an index released every quarter by the National Housing Bank (NHB) with technical support from RBI, has shown a sharp swing away from the trend earlier this year. In the first quarter of FY 14, residential real estate prices fell in 22 cities out of
26 in the list, a performance which improved to 10 cities in the following quarter, and finally to eight in Q3.
Prices were flat in two cities in the third quarter. In Q2, prices were flat in four cities; rose in 12.
In Bangalore and Pune, prices have risen for the first time since the last quarter of FY 13, the latest Residex data shows. The biggest rise was in Nagpur (8 per cent over the previous quarter), followed by Guwahati (7.4 per cent) and Pune (7.3 per cent).
Residential prices in Delhi rose 3.2 per cent over Q2, while those in Chennai and Bangalore rose 3.8 per cent and 3.7 per cent respectively. Patna has seen a significant increase of 6 per cent in prices.
Major cities where prices continue to fall are Lucknow (by 3.1 per cent from Q2), Jaipur (2.8 per cent), Chandigarh (2.1 per cent) and Kolkata (1.5 per cent).
The trend is significant because home prices are rising even though interest rates have not fallen. In the third quarter monetary policy released in January, Governor Raghuram Rajan raised benchmark interest rates by 25 basis points to 8 per cent.
R V Verma, the chairman of NHB, which also acts as a quasi-regulator for the sector, said there were clear signs of a change in the trend of persistent decline. “There is a strong demand from end-users.

India's residential real estate: An outlook for 2014

New Delhi: Residential real estate remains the focal point of Indian real estate, regardless of the market conditions. Considering the massive demand for homes in the country, this is hardly surprising. However, the demand does not equal absorption in a price-sensitive country like India, where the greatest requirement for residential properties stems from the EWS and middle-income group. The high dependence on home loans by the salaried class underscores the price sensitivity factor even further.

In general, 2013 was not a good year for India's residential real estate market. The sluggishness was most pronounced in the prime cities. Thanks to resurgence in employment-driven market sentiments and the arrival of a number of right-priced residential projects, Pune proved to be a notable exception. The city showed a very healthy demand for mid-priced residential properties throughout 2013 and on into the first quarter of 2014.

The reasons for the generalized slowdown in most Indian cities are not hard to guess – inflation led to decreased purchasing power and financial confidence, while the RBI went through the ceiling with its spate of hikes in interest rates. This obviously led to a steep rise in the EMIs that home loan borrowers had to bear. Property prices remained high in most cities, largely because developers were hit hard by the vastly increased costs of construction and debt.

At the same time, the potential for most salaried people in the country to switch to more lucrative jobs took a nosedive because of the fallout of the economic crisis in the developed countries. All this combined to bring about a sort of stalemate between developers and property buyers in cities where inventory as well as property rates remained high - most notably Mumbai, Bangalore and Delhi.

Though often made out to be the villains of the piece, there is no escaping the fact that India's residential real estate developers had their backs against the wall in 2013. Because of the rising input costs and compromised sales, they were prevailed upon to cut back on project launches. In line with the need of the hour, those that did happen were mostly in the mid-income and budget homes segments. Luxury housing took a severe body blow and movement of premium and super-luxury properties in the metros slowed down considerably. Only affordable to mid-range homes continued to sell - often on the basis of unofficial, project-specific discounts.

Through it all, residential developers pinned their hopes on the Diwali festival season, which usually brings with it a 25-30% rise in home purchases a month or so before it actually arrives. In anticipation of the coming demand, they kept their stated prices steady; instead of hard discounts, many smaller developers offered freebies and add-on incentives. Some centrally located projects even showed marginal increases. The 'freebie' strategy failed noticeably, with home purchases increasing by no more than 10-12%. By and large, the sales that did happen took place on the basis of discounts wrangled on the negotiation table.

In the early part of 2014, sentiments on the Pan-India residential property market will remain cautious, but cities which offer better affordability and returns on investment will pick up. The ratio of sales over inventory in overpriced cities will remain more or less equally balanced. However, certain suburban pockets in cities like Pune and Chennai that are seeing real-time infrastructure enhancements will show price rises.

Also, because of the high demand for ready-to-move-in residential properties in all major cities, there will be price increases to be seen in projects that are being delivered or are close to completion. The mid-end and affordable housing segments will record healthy appreciation in capital values in the short term from a low base. The provisions made for this segment in the recent interim budget to help the affordable housing sector have paved the way for increased activity in 2014.

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