Indian Property

By Sanjay Chugh, Head - Residential Services (Bangalore & Chennai) Jones Lang LaSalle India Bangalore has been the fastest growing city of India over the past few decades. Information Technology has been the major growth driver responsible for aggressive real estate development of the city. Being the IT Hub of India, Bangalore has a multi-cultural population, good social infrastructure, excellent educational institutes and an improving physical infrastructure. Currently, the most promising residential micro-markets are Outer Ring Road (ORR), Sarjapur Road, Whitefield and North Bangalore. Bangalore is also the third-largest real estate investment hub for High Net worth Individuals (HNIs) and tops the list in terms of investments from Non Resident Indians (NRIs) looking at settling down in India in the future. The city attracts a sizeable population due to its cosmopolitan culture. Home to over 10,000 individual dollar millionaires, Bangalore has a large base of expatriates livi...

By Om Ahuja, CEO – Residential Services, Jones Lang LaSalle India The current market scenario clearly reflects the market mood. Developers are extending many offers to attract demand, clearly indicating that buyers are in wait and watch mode. Various press articles have been suggesting price correction for over last three quarters, but we have not seen any serious correction in prices (with a few exceptions in some markets). Developers are proffering bundled offers instead of negotiating prices. One such offer is the possession-linked payment plan, in which the buyer pays 20-25% of the apartment cost in advance and the rest on possession. Benefits Of Possession-Linked Plans A critical point here is delivery risk and exposure of credit to developer. Buyers see immense benefits in paying just 20-25% to the developer while booking and paying the balance amount on possession. This eradicates the risk of developer not completing the project on time, and of the developer going bankrupt...