web stats
Home Authors Posts by Reema Singhal

Reema Singhal

7 POSTS 0 COMMENTS

How To Improve Builders’ Reputation In Market?

    improve A builder is the one that provides the best real estate properties for buyers to choose from and buy one. When you have this power or acquired this power of making the dream of homes and properties possible for people, you also have more important responsible of improving and maintaining the reputation. It is through the reputation that a builder gets contracts and succeeds in selling properties to prospective clients and buyers who keep on coming back for more purchases in future. If this is not happening to your, then you must follow certain steps to be in the right form and improve the reputation you have in the property market. It is not easy and smooth that will give you results in a few days. Patience is the key and in the long run, you will see how effortlessly you get clients to come and seek your advice in getting the best property deals.

    Steps to improve builders’ reputation
    Branding: If you have a logo or brand that you have patented and want it to be popular, there is no other shortcut but branding through marketing. Whatever revenue you have been earning through your business, you need to spend at least 1% to 2% on the marketing of that brand you have already created. If you don’t want to end up spending a lot and be left with nothing for future work, it is important that you set a budget that will be easier for you to determine the expenditure that you want to know. The plus minus gets easier this way. Name one company that has rose to that height without any marketing strategy. There hardly is any. It is high time that you invest on marketing for better and higher returns in future. With marketing, people will know that you are professional and can be trusted.

    Network: There can be instances where a builder is doing pretty well but he is not getting the limelight. For that matter, you need to get the right attention at the right time. There is no better time than networking with important people who may be your prospective clients or help you fetch prospective clients. Attending meetings and seminars of properties where you get to know about the market trend and buyer’s potential of buying property calls for a great leap in your career as a builder. Many people misinterpret builders to be profit-oriented and not customer-oriented. It is a myth and you being a builder need to prove this wrong.

    Does the logo portray a transparent picture? Well, many people find logos to be fancy and colorful. Do you really know the meaning of it or explain it to the clients if need be. Be ready for that as many clients are inquisitive and asking such random questions, these buyers gauge your ability to deal with customers. In short, the logo or banner you use should be a replica of what your mind thinks. It should represent you and your work.

    Quality Matters: When you have projects at hand, ensure that you deliver quality. In the long run, it is the quality that matters because people will talk about the quality and materials used. If a building doesn’t sustain the weather conditions and loses its beauty easily, it will be difficult for the builder to sustain the reputation. Once you construct the name, you will have a reputation that no one can break or shatter as once reputed is always reputed in real estate business.

    Online Availability: There are many ventures and companies that work for your brands online for a meagre amount. You can do that. This method is the cheapest method to get the best traffic to your website and get more and more people talking. When you build a good rapport online, you are the King. Online image management is one of the greatest keys to success and reputation. Online image management is crucial at the same time. Once someone writes or says ill about you, it might spread like wild fire. Make sure the agency you hire is reputed enough in getting the site rank higher in all aspect.
    Less is More: Have you heard of this trending phrase “Less is More”. This indicates that anything that is used less signifies more. Don’t believe in numbers of delivery. Believe in delivering less but with exceptional finesse and meticulousness. On-time delivery also works well in the concept of Less is More because you are delivering without stretching the estimated turn-around time. This way, people start building trust in you and like any advertisement word of mouth will start spreading and making your popular and reputed eventually.

    First Impression is always the last: When you get your first project of building a commercial or residential complex, ensure that you give the best in it. People judge you from your first output. If the output is great, you will not have to spend on the rest of the methods discussed but if it doesn’t, then each should be followed religiously. You can’t miss grabbing the opportunity in the best possible way. If you miss it, you miss the game.

    Builders are saviours to people who want spaces for work or stay. To catch the attention of the people, you need to be on your toes so that you are observed and talked about by people. You should be the name whom they trust for the property. You should be the one who attracts buyers and not the ones who approach the buyers.
    Good luck for your initiative.

    30% Less Space For Rented Offices In Gurugram In 2016

    office space gurgaon
    Source: officespacegurgaon.in

    Inspite of being the favourite destination for finance and IT companies, Gurgaon (now Gurugram) saw a dip of about 30% of the rented out space for offices because of the scarcity of quality places. Gurgaon saw many companies which had share of leases halved.

    The area which is leased to companies was 3.87 million square feet in 2016. However, since the new supply of around 2.4 million square feet is scheduled for completion, the leased area is assumed to increase in 2017. Due to the fact that this supply has not been very fulfilling in the last few years, it becomes a major cause of the declination of the rented office space in Gurgaon and other cities.

    Technology sector, which is the main sector of the leasing business of the city, saw its share decreasing from 64% in 2015 to 32% in 2016, which is half of the previous figure.

    The amount by which the share of IT sector declined cannot be completely believed because it is said to have been made up by the manufacturing and service sectors, both of which have escalated to 20% and 11% respectively. But despite all the challenges, Gurgaon is still the most favoured spot for office purposes in the national capital region. It accounts for 51% in the total concentration with Noida and Delhi closely following behind.

    If we compare the office space available for office lease in both the years, it was 10.2 million sq feet in 2015 whereas in 2016 it was 9 million sq feet.

    Udyog Vihar and industrial areas comprised of about 30% of the total available office space in Gurgaon. While National Highways had 22% along their way, Sohna Road and Golf Course Extension road together had only 18%. The rest of the office space left comprised of Manesar with 11%, Golf Course with 8%, MG road 5% and institutional sectors with just 3%.

    DLF marked the highest growth in rent of 13% because of the shortage of supply of spaces in rented offices in gurgaon. The extension of the Rapid Metro proved to be advantageous for the Golf Course Road as its rentals increased by 2%.

    Note Ban May Drop Real Estate Sales Outlook 2017-18

    real estate firmsJust as the top real estate firms were recovering from their downshift, demonetization hit their roof thus making it difficult for them to meet their sales guidance for this year.
    October 2016 was beginning to look a little hopeful for realty firms for the sales of properties after almost three year. But this could not be enjoyed by them for a long time because November 8 saw the withdrawal of high value currency notes from the market. As many deals as possible are being closed in the March quarter.

    Prestige Estates Projects Limited (PEPL), which is based in Bangalore, was able to make only 52% of the sales they had targeted for the entire financial year. The numerical estimation of sales in this year was Rs. 3,500 crores.

    It is said that the guidance of annual sales will be downwardly modified. The target seems doubtful to be achieved inspite of a little increase in the property sales in the month of January.

    Following demonetization, almost all the developers are calling the period of November-December as fragmented which weakened the sales of the property leading to a postponing of buying decisions.

    Banning of high value currency notes has collapsed the industry which will take a few months to recover. Developers are expecting a better condition by the end of March.

    Going by the market value, DLF Ltd. happens to be India’s biggest developer. It saw a huge drop in the sales from April – December 2015 (2015 crores) to April – December 2016 (760 crores).

    As far as disturbances in real estate market can be witnessed, it seems there is still a long way for the property sales to elevate – say sources.

    Rent-Out Properties To Increase Tax Liability

    rent out property

    It is a very common practice to buy a property on loan for investment purpose and make income on rent-out property. But those following this practice, we have a bad news for you. Earlier, people used to have the advantage of setting off their entire loss, which was done by showing it under the head “income from house property” against other income heads. But now according to the Budget 2017, this privilege will have to be restricted to 2 Lakhs. If the loss is more than 2 lakhs it can be carried forward for the next eight years.

    People who own one house
    People who own only one residential property which they have self-occupied will not be impacted by this change in budget as it will not affect their tax liability. According to the income tax laws till now, if people rent out the only one residential property which they have , they were given the right to set off the losses incurred from this property against other income sources. But after the amendment in the Budget, these people will be able to write off such losses with a restriction of 2 lakhs from the next financial year.

    People who own more than one house
    When people own more than one house or property, it is assumed that they live in one of those and the rest are let out, even if they happen to be vacant. For calculating the income from house property, the annual rent from all the properties had to be added and then all the expenses were to be deducted. If the result is a negative amount which is loss, this complete was written off against income from other sources. But now this amendment will limit these losses to 2 lakhs which will ultimately increase the tax liability.

    If we look at the market conditions which are prevailing, this restriction on writing off losses will affect the real estate investment in a negative way.

    Ghaziabad Gets Ready To Develop As A Smart City

    ghaziabad smart cityKeeping in mind the implementation of redevelopment plans which come under the Smart City Proposal, Municipal Corporation of Ghaziabad has recognized 1317 acres of land in the city. Following the ABD Model (Area Based Development) which is one of the elements of the proposal, parts of Kaushambi, Vaishali and Vasundhra have been included in the process of developing Ghaziabad as a smart city. The other element of the proposal which is called Pan-City Solutions, concentrates on the transportation and management of the traffic which the city is highly in need of.

    On 31st March this proposal will be sent to the Union Urban Development Ministry for the third round of Smart City Mission. Ghaziabad was unlucky as it was not able to clear the first two rounds of selection. Third round also comprises of about 60 cities who will be competing against each other for selection.

    The area coming under the ABD Model is approximately from the boundaries of the Vaishali Metro Station till the CISF- Vasundhra Road. This area was decided upon the consent of the private consultant who will be managing this proposal and Municipal Corporation. It was done after properly inspecting and surveying the city. Reports suggest that there was one more survey which was conducted, after which two parks in Vasundhra named The Adarsh Park and The Netaji Subhash Chandra Park have also been included in the area under ABD. It is said that proposals of open air gymnasiums have been made for these parks.

    Keeping in mind the pollution levels, and also to make the proposal friendly, Pan-City Solutions is highly concentrating on eco-friendly transport system and smart traffic management.

    Regional Centre for Urban & Environmental Studies will scrutinize the proposal and then the final budget for the proposal will be decided by February 27th. Before this proposal is sent to the Union Government, the proposal will need imprimatur of an influential committee of the state government.

    Land Price Is To Tech: Factors Influencing Rising Demand For Housing

    land price and techReal Estate transformation cannot be missed out when talking about 2016 transformations. It was one of the most affected sectors by the policy reforms by the government.  The changes, however, have faced few criticisms, but if we look at them with a long-term perspective, they will be very beneficial. The system will become more disciplined, reliable and legitimate.

    Budget 2017-18 has given the importance to the housing sector and this move is taken to make this sector more lucrative for the stakeholders which include the people who impact the supplies. The main suppliers are banks and developers.  Since there are many policy changes taking place in the housing sector, the factors which affect the demand of this sector keep changing. However, the consumers never stop investing in Real Estate.

    The Two Major Policy Initiatives are –
    1.    Pradhan Mantri Awas Yojana (PMAY) or Housing for All
    2.    Smart Cities Mission

    These two policies have had important influence on the demand and supply factors of Real Estate.  They have also affected the issues revolving around the informal housing. The Real Estate Regulatory Act which came into effect recently does not support the promotion of informal housing but it does make the formal residential market more legitimate.

    We are facing a crunch of about 18.8 million homes in the urban areas from which 15 million are necessary in the LIG sector. The “Housing for All,” as the name itself suggests, strives towards providing housing for all by 2022 with the help of decreased interest rates, lenient regulations and various strategies. The “Housing for All” and “Smart Cities Missions” complement each other by utilizing the advantages and also capitalizing on the shortcomings. Smart Cities missions has its full attention on managing the availability of land, improving the facilities of basic infrastructure and execution SPVs (Special Purpose Vehicles). On the other hand, “Housing for All” scheme has its focus on developers and buyers and their incentives.

    Some initiatives have been taken under Smart City which include affordable and reasonable housing for economically backward sections, housing for homeless, development of slum areas, rental housing etc. all these initiatives are in confluence with the housing for all.

    This is the best time when private developers can get associated with the informal sector for development of housing. There are some factors which will aim at the housing scarcity issue in India through private participation which are –

    Interposing Technology
    As technology has helped in almost every field, it will prove to be very beneficial for realty segment as well. It can definitely bridge the gap that is taking place between efficiency, funds and time.

    Better Infrastructure
    Improvement in infrastructure is the need of the hour which the “Smart Cities Mission” aims to achieve. Necessities like electricity, water drainage, supply of water, sewerage and cleanliness will be fortified.

    Land – The Savior
    It goes without saying that land has the most major role to play in the availability and pricing of housing sector. Smart Cities plan to handle the available land which is owned by the government to develop the housing in the informal sector. The affordability of the housing units will increase this way because this land will be available at subsidized rates.

    Progression
    Area Based Development (ABD) is a redevelopment model which is being used by most of the smart cities. This model gives a chance to aim at the issues of the informal sector by evolving the area with quality and proper housing because the urban informal housing is in these locations.

    More than one Financing Options
    The most common problem which is prevailing in the housing sector is the incomplete projects due to lack of funds. If a constant and stable cash flow is maintained, this issue will be resolved. At present, smart cities get their funding from various government schemes.

    Private Participants
    The Smart Cities Mission is a great way to bring private entities to participate which proves to be very useful as it increases the efficiency of the projects. The system of revenue and funding come under the smart city initiatives, all service providers are benefited under this mission.

    The confluence of Smart Cities Mission and Housing For All initiative will prove to be successful only when executed properly. Also, the overall evolution should be done keeping in mind the proper standard of housing and involving private service providers.

    High Cancellations Distressing DLF Investors

    DLFA recent trend is seen that homebuyers are cancelling their bookings with DLF due to various reasons like change in jobs, place or they are looking for the most suitable, affordable housing scheme within their budget. Whatsoever be the reason, the real estate developers have to bear a loss for the situation. Big developers like DLF is also not far from the scenario and is facing crucial time in their business.

    The real estate leader DLF’s investors are facing prompt concerns as the company observed an approximately 50% cancellations of the total sale in the first nine months of current fiscal year 2017. They bear a total cancellation of Rs.790Crore that reduced bookings to Rs.760Crore from the gross sales booked for Rs.1,550Crore in the first nine months of the current financial year. Out of which Rs.390Crore cancellations were in December quarter only.

    Also, the sales were much lower than the cancellations of DLF projects in the first quarter. On 17 Feb, 2017 the DLF shares bombed to Rs.137.15 by 6.99% on National Stock Exchange.
    DLF has given weak reports for the December quarter and situation is low also for the upcoming quarters. The net sales fall down by 29% to Rs. 2,178Crore and profit by 44% to Rs.98Crore.  Also, negative cash flow resulted an increase in debt quarter by quarter. Gross debt hiked to Rs.27, 220Crore from Rs.1,000Crore from the previous quarter, in December end.

    In India, none of the real estate developers report any of the cancellations. The company spokespersons couldn’t give satisfactory answers when the analysts inquired about the reasons behind the large number of cancellations. Although, the analysts realized the main reason could be dropping prices of property.

    Latest News