India and UAE are the two countries that are growing rapidly in terms of real estate. Both the countries are seeing great potential and the developers across the world are trying to grab a place in this countries. Both, the property developers of India and UAE are trying to enter into each other's domain. In India sternon groups are making waves which is a UAE based group. Sternon groups are making huge investments in India. While Indian developers like Sheth and Nahar Group are seeking presence in Dubai. Sternon Groups has presence in 28 countries and they are still expanding. They made entry in India with a 1200 crore mega project near new proposed International Airport of Mumbai.

Sheth Estate is pumping 1.5 billion Dirhams in the Dubai Realty Sector. While the Nahar Group based in Mumbai, opened a office in Dubai to serve the NRI's better. This will further lead in the increase in clientele of the company.The Dubai office, besides catering to the customers in the Middle East, will also target the growing interest of NRIs based in Hong Kong, United Kingdom and United States in Nahar's Amrit Shakti project near Powai in Mumbai.

This simply shows that the developers of both the countries are trying to capture each others market. As these are the two countries which are tremondously growing in terms of Economy.

Do we really need to use a Real Estate Agent? It is the first question that every seller or buyer should ask themselves before calling the service of a Real Estate Agent. In fact there is no law anywhere in the world which stops an individual from buying or selling a house without the help of a real estate agents.

After the first question, if the person decides to go himself then this is the right place. There are some tips which can be handy during the sale or purchase of the house by yourself. Following are the tips for someone who will prefer to go himself rather than taking the help of Real Estate Agent to sell his house:

1) Prepare The House:
Before doing anything, make sure that the house is in good shape to show. That means making sure it is clean, de-cluttered, odor-free, brightly lit and freshly painted. Curb appeal is also important. Show the house in full light(day light) as generally people like bright houses.

2. Price it correctly:
Second and the most important step is pricing your house correctly as If you price it high then also you wont get any buyer and if you price it less then everything will go in vain. The biggest mistake for sale by owners make is pricing their home too high.

Use listing Web sites to get a starting idea of what a house is worth. A look at a listings site, will reveal what sellers are asking for in the neighborhood. Free comparative market analysis before setting an asking price through 2 or 3 real estate agents will give you a rough estimate.

Go to neighborhood open houses to see what other homes are selling for. If the home is unique and difficult to compare to others, consider having it appraised. Up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties.

3. Market it Correctly:
The Internet can be a big help in marketing a property. Listing sites will allow a seller to post a listing to gain Internet exposure.

Other online options include community marketplaces such as portals like Yahoo. When placing a newspaper ad, also make sure to ask if it will be posted online for free.

But don't underestimate the power of a sign. Directional signs can call attention to a home from nearby roadways, and signs in front of the home should have an information tube or box filled with informational flyers. Just make sure you're clear on area sign laws.

4. Get the papers Ready before selling:
Decide early on whose services to use for the paperwork. That means either finding a title company or a real estate attorney to assist in completing the sale. Your backend should be up to date with all the paperwork.

2006 was good, 2007 to be better

Posted by Jack Macferson | 11:32 PM | | 1 comments »

Real estate sector will continue to be one of the fastest growing sectors.The year 2006 was one of the very good years for the real estate sector, if not the best, in the country. What’s more, experts say 2007 will be better.

With almost all major real estate india companies outperforming the 50 stock benchmark Sensex by hefty margins, the scene in the real estate segment can only get better from here on.

Construction activity across the country is on an upswing, with the state governments offering incentives to real estate companies in a bid to check the spiralling demand for houses and commercial space.

Various studies have said that there would be about five times increase in office space in the next five years, 200-million sq ft for organised retail by 2010 and over 50,000 new hotel rooms will be added during the same period. India will have a demand-supply gap of 17.9 million housing units by 2010, says a study.

The 10th Five Year Plan say that out of the total shortage of 22.4 million dwelling units, over 70 per cent is for the middle and low income brackets. The additional requirement of housing per year during the plan period of 2002-2007 has been put at 4.5 million units per year.

Experts say the real estate sector would continue to be one of the fastest growing service sectors of the Indian economy. A recent study by leading business chamber Associated Chambers of Commerce and Industry of India (Assocham) pegs the total share of FDI in the domestic real estate market at 26 per cent out of the total FDI expected by 2010.

The same study also says that the real estate market is currently growing at 30 per cent per annum and offering maximum returns to investors. “The domestic real estate market, which is presently estimated at $16 billion (Rs 72, 496 billion), will increase by over three and a half times and touch $60 billion (Rs 2,71,860 crore) by 2010,” the report of the Study on Future of Real Estate Investment in India says.

Incidentally, only last year, the government had allowed 100 per cent FDI in the property and construction sector.

This is not the only good news. All major mutual funds and banks have earmarked major sums running into Rs 3,500 crore for this fast-growing segment.

The year 2006 also saw many real estate biggies trying their luck at the stock market, and making handsome gains.

If the maiden IPO of Parsavnath Developers, aimed at raising Rs 1,000 crore, received spectacular responses with 62 times over subscription, the IPO of Sobha Developers also got good response. In the pipeline are mega IPOs of DLF and Orbit.

Such was the buoyancy associated with the sector that Ishaan Real Estate of the Raheja Group successfully raised £180 million on the London Stock Exchange (LSE) while another company, Hiranandani Constructions, is planning to raise $500-750 million on the LSE.

According to reports, the market size, which is now estimated to be $12 billion, is expected to grow at 33 per cent to $50 billion by 2010.

In what can be another indicator of the dream run of this sector, the market value of Unitech shares has gone up by a whopping 75,000 per cent. While the market cap of the company was Rs 55 crore in November 2002, it now pegged at over Rs 41,000 crore.

Similarly, the price of Arrow Webtex scrip zoomed by over 44,000 per cent from Rs 1.35 to Rs 600, while Ansal Properties rose by 29,500 per cent from Rs 3.33 to Rs 985.70.

Such is the global interest in the real estate success story of India that the International Herald Tribune has predicted that the real estate india market will grow at a more hectic pace the next year.

Says a senior officer of India’s biggest public sector bank State Bank of India: “The real estate sector has only just started growing. Name one single major company that is not venturing into this sector. A booming population will ensure that housing will always remain a problem area. It is a good investment opportunity.”

In the region, Punjab has taken a major lead when it comes to real estate projects, with almost over 75 mega housing and infrastructure projects having been cleared as development of townships, housing & urban infrastructure under the Industrial Policy, 2003 by the state government.

While Chandigarh continues to hold on to its pre-eminent position as far as property rates are concerned, Tier II cities like Mohali, Panchkula, and districts such as Amritsar, Jalandhar, Ludhiana, etc, are seeing feverish construction activity.

DLF has been permitted to construct three mega projects, while Emaar MGF Land has received a go-ahead to develop over 2000 acres.

The region is also witnessing a spurt in the number of malls and multiplexes, with many major companies entering the scene. The Assocham has said that the number of malls in Kolkata, Mumbai, Bangalore, New Delhi, Hyderabad and Pune will grow to 300 by 2010 as against their present strength of 50.

With Bangalore making rapid strides in IT/ITES sector, the office space absorption here has reached a new high of 14.2 million sq ft, which is believed to be the second highest in the world after Tokyo.

This is accountable for 53% growth over the past years. The office space absorption figure is known to stand at 9.28 million sq.ft thereby carving out a niche among the top four cities globally. With IT/ITes majors being bullish to set establishments in Bangalore, the city is likely to figure in the top cities globally in office space absorption in 2007, says the data showcased DTZ Debenham Tie Leung, an international real estate consultancy firm.

Bangalore’s CBD is fetching Rs 65 per sq ft per month, with a further rise to come up soon in very near future in the wake of new supply. The vacancy level in CBD is just 0.5% against 7% - 8% of other peripheral locations in the city. It is likely to remain unchanged due to the huge pipeline supply.

Indeed, NCR could not make it to win the race. The Capital has seen an overall absorption of 10.6 million sq ft of commercial Grade A office space in 2006, says the survey. Rentals in the city will continue to rise due to the MCD sealing of illegal commercial spaces. Another reason can be the steady demand by the upcoming companies in NCR.

According to the survey, the total office space absorption in Mumbai was estimated to be 6.4 million sq. ft. the demand for commercial spaces in Mumbai may continue to by expanding IT/ ITes, insurance and telecom sectors. The rentals in the most sought after locations in Mumbai such as Bandra, Worli, Lower Parel are almost 100-200% higher than the rentals in 2006. As such, the rentals in financial capital have not jumped very high.

Rentals across these cities have more or less remained stable and have not shown significant appreciation, said the report.

The office absorption in Chennai in the last quarter of 2006 stood at 5.2 million sq. ft., whereas the total absorption in other upcoming cities including Pune and Hyderabad stands at 4.6 million sq ft and 3.8 million sq ft, respectively.