Realty of Commercial Investment in NCR: The Ups, the Downs, the Future
Anybody who has ever shown the slightest of interest in the real estate sector of India in the past few years is aware of the forlorn state the realty arena has been undergoing. And while this cloud of gloom seems to stay put, hovering over the Indian real estate sector, some surveys conducted in 2015 show positive results as investors are being drawn towards the realty market again. This positive market sentiment is infusing the investors with a renewed sense of confidence that is helping them believe in the upside of Indian realty.In this scenario of regeneration, Delhi-NCR has no reason to be left behind. The home buyers and commercial investors are on the lookout for beneficial deals and lucrative investment opportunities. But the prevalent lag in the residential segment due to the demand-supply imbalance is decelerating the pace of recovery in this sector. In contrast, things seem to be looking up for the commercial realty of NCR, especially that of Noida. This growth is not only limited to the capital and its surrounding areas as similar trends can be witnessed throughout the country. The following article will assess the various ups and downs the commercial segment of NCR has had to endure and the possibilities and potential it withholds.NCR Realty- A PreviewThe National Capital Region or NCR is one the most rapidly urbanizing residential and commercial hubs in the country. This swift pace of acceleration has caught the attention of many developers and businesses, which are not only limited to the Indian stock but have also invoked the interest of international contenders. While the commercial properties have managed to stay afloat, their prices have been equally buoyant throughout India. It is here that Noida and Greater Noida have given respite to the investors with their affordable property rates. Moreover, many other regions in NCR including Noida Expressway, Noida Extension and Ghaziabad are becoming favourites of businessmen, retailers, entrepreneurs and many global firms owing to the availability of land, that too at affordable prices. These regions are undergoing major infrastructural growth and development. Places like Ghaziabad have even made it to the list of smart cities and are now getting ready for a total make over. Keeping all these factors in mind, the National Capital Region is becoming a ‘hotspot’ for commercial investment.ConnectivityOver the past decade, NCR has witnessed a paramount transformation of its transportation network with the coming of metro. And while at present, regions like Delhi and Noida boast of fast-paced transport facilities, Ghaziabad and Greater Noida are not far behind in joining the league with their proposed metro lines in the making. Even the road networks in various parts of Noida, Greater Noida and Ghaziabad enhance their appeal for investors. Moreover, both the domestic and international airports located in Delhi are at a comfortable distance from regions in NCR, which also have easy access to major railway junctions. In fact, another international airport has been proposed in Greater Noida, which when constructed, will be a game changer for the realty for NCR. Thus, good connectivity has played a major role in attracting reputed companies and business firms to invest in NCR.Demand on Rise’Demand’ is a word that has been resonating in the commercial segment unlike that of residential segment. Both national and international retailers are demanding commercial spaces in NCR to exploit the availability of land and affordable rates in these regions and the presence of large customer base in case E-commerce industries. The e-commerce revolution is taking the nation by a sweep which in turn is helping the real estate sector, which is also becoming ‘e-conomised’! Many IT firms and financial institutions are also looking to lease out commercial spaces in Noida and the surrounding regions. Brokers are constantly receiving queries pertaining to projects in Greater Noida and Noida Expressway which clearly shows the increasing interest in commercial spaces of NCR. And considering that these commercial investments are bound to give positive returns, more and more companies are making investments in these regions.Role of Residential ProjectsWhile the rising demand of commercial properties is very conspicuous, the role that residential properties have to play should also be acknowledged. It is undeniably true that the demand and success of a commercial project is intimately linked to the presence of residential projects in its vicinity. Noida, Greater Noida, Noida Expressway and Ghaziabad are laced with several residential projects of major developers which are either under construction or ready-to-move-in. The presence of these residences has proved to be a significant catalyst in escalating the demand for commercial and business growth in NCR.Quality DeliveryThe commercial projects in Noida, Greater Noida, Noida Expressway, Noida Extension and Ghaziabad boast of international standards and global quality of construction. Majority of these projects feature world-class amenities and provide the investors with a value for money product. For instance, Viridian Red has launched an exceptional commercial project by the name of WTC Noida in association with World Trade Center Organisation in Noida which is packed with quality and high standards, in addition to the beautifully designed retail spaces and contemporary amenities. However, this is just one example of the many pre-eminent commercial projects that have either been completed or are underway. With this being the scenario, investors as well as developers are being encouraged to invest in NCR.The FutureAmidst the loss of confidence in developers, consumer complaints as well as activism have increased manifold in NCR. However, with a gradual improvement in economic market sentiment and efforts put in by the NDA government, the hope of recovery is underway, feel realty experts. Experts have also prophesied a positive change in the NCR real estate after considering the optimism of the buyers. Having said that, if the Modi government is successful in implementing its reforms effectively and the economy receives the required thrust in the coming time, the future of real estate in NCR will be a bright one.
8 Top Tips When Buying an Investment Property
In most countries, purchasing an investment property continues to be one of the most popular ways to invest. The goal of this investment should be to provide you financial freedom and enhance wealth. The problem is many believe that once they get into the venture, it will be a guaranteed, easy success.It is vital you learn how to effectively manage your investment as this will determine whether or not the investment can help you achieve your financial goals. Below are a few tips when buying an investment property:1. Choosing the ideal property at the right pricePurchasing an investment property at the right price is highly critical. It is all about the capital growth when it comes to investing in a property so make sure to choose a property that has a high potential of increasing in value.Always do research. Find out as much as you can about what is selling in a certain area. The more you learn, the more you become skilled in determining the property that is worth investing on. In other words, you will know a bargain when you see it.If you want to acquire valuable data on various locations and properties, get information from lenders and insurers as they have data that can help you avoid selecting the wrong investment property.2. Do Your ComputationsYou should consider property investment as a means of long term type of investment. As this is the case, you need to ensure that you have the budget to maintain your mortgage repayments over the long-term. It is not right to sell your investment property when you are not good and ready since if you are to encounter any financial problems then you might be forced to dispose of the property at the wrong time.It is less expensive to keep an investment property and service the loan once you already own the property. This is because you can get rental payments as well as tax deductions on several of the expenses connected with property ownership. Things will become easier along the way especially that as rent tend to increase over time so will your income.Learn the taxes involved in property investment and include this in your budget. Seek advice from your accountant and learn about stamp duty, capital gains tax and land tax. While interest rates can change over time, as the owner, you can always increase the rental fee to cope with the expenses.3. Get a Reliable Property ManagerUsually, a property manager is a licensed real estate agent whose job is to make sure that things are in order for you and your renter. Your agent can provide you advice, assist you in managing your tenants and help you get the best value for your property.Your agent should be able to teach you about property law as well as the rights and responsibilities of both you and your tenants. The agent can also handle maintenance problems. Except for other emergency repairs, the maintenance costs should get your approval first in advance. Your agent can also assist in finding the right tenants, do background checks as well as make sure tenants pay rent on time.4. Understand the market and the dynamics where you are buying.Search for other properties available in your current area and talk with as many real estate agents and locals as you can. Only get advice from professionals you can trust and make sure to do the leg work. You can use the information in this site to view demographics, average rents, property values, and suburb reports.It will be to your advantage to know about the changes that are planned or are happening in your suburb. For example, knowing about the planned by-pass may quickly enhance the value of your property as this means traffic in the area may reduce.5. Pick the right type of mortgage to suit you.There are a lot of financing options for an investment property. Seek advice in this area to find the option that will be in favour to your financial status.While the interest on an investment property loan is usually deductible, some borrowing costs are not easily deductible. Appropriately structuring your loan is vital and it is best that you seek help from a trustworthy financial advisor about this.When choosing between a fixed rate loan and a variable rate loan, go with the loan that is in favour with your circumstance. Carefully consider both options before you decide. For example, as a variable rate loan can become cheaper overtime, choosing a fixed rate loan at the appropriate time can really be beneficial.Rather than principal and interest, a majority of the investment loans should be created as ‘interest only’ as it can enhance the effectiveness of the tax of your investment especially for a home loan. An ‘interest only’ loan is better compared to principal and interest loan when it comes to investment property since it causes your negative gearing benefit to decrease as you pay down your loan.6. Examine the age and condition of the property and facilities.The condition of your property and facilities can highly affect the profit of your investment. It is vital, that before making a purchase, you hire a professional property inspector to perform comprehensive inspection of the property in order to detect potential issues earlier.7. Make the property attractive to tenantsChoose neutral tones and make sure that your property’s kitchen and bathroom is in good condition. An attractive property can attract better quality tenants. When it comes to purchasing a property, do not only consider what you think is attractive to you. What is attractive to you may not be attractive to some. Remember, that the investment property will be the home of your tenant and not your own.8. Take a long-term view and manage your risksThink of property investment as a long term investment and understand that property prices do not rise right away. The longer you can commit to a property, the better. When you build up equity then you can decide to purchase your second investment property. Avoid being greedy and balance your goal of financial stability and in enjoying your current life.