Commercial Properties

Foreign investments in Indian Real Estate

February 5, 2021 0 Commercial Properties Real Estate Industry Residential Properties

Owing to the contributions to the GDP, the Real Estate sector has assumed an important place in the economy. That coupled with the need for state-of-the-art residential and commercial projects, the sector further offers excellent opportunities for investors both from India as well as from outside India. The sector is also receiving excellent government support in terms of policies and regulations. The introduction of REIT as a vehicle that helps the sector raise funds and create more value for the stakeholders, has been cheered widely by investors. Beside, the realty in India now is 100% open for the Foreign Direct Investments.

Foreign investments in Indian Real Estate
Foreign investments in Indian Real Estate

The foreign investments in property sector in India have increased consistently since 2005, when the sector was opened. A bulk of these investments have come in post 2015, as the sector started offering good opportunities by bringing in more transparency. Of the total investments in Indian Real Estate through foreign investments of US$ 25 billion, US$ 16.6 billion has come post 2015. This shows the increasing trust of foreign investors in Indian real estate sector. This has also helped the sector weather the headwinds it faced during this period due to various structural challenges.

According to the data released by Department for Promotion of Industry and Internal Trade Policy (DPIIT), construction is the fourth largest sector in terms of FDI inflow. Real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and will contribute 13% to the country’s GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs. Indian real estate is expected to increase increased by 19.5% CAGR from 2017 to 2028.

While this gives an overall optimistic picture of the foreign investments in property sector in India, what can a home buyer take out from this information? Let’s look at what happens with the onset of foreign investment in any sector. First of all, the foreign investment flows in any sector, only when it is expected to grow fast in following years, allowing the PE funds and other investors to rake in large profits. Which can be inferred to be offering excellent returns in times to come. Another underlying fact is that these investments will help complete a number of stalled projects and release huge values that is currently lying locked therein. This can provide the proverbial push for growth to the sector.

Growth clearly is on the horizon when we see FDI rushing in a sector. However, one largely ignored but important fact from a retail buyer’s perspective is the transparency such  investments bring in the invested sector. That coupled with the fact that RERA is establishing itself well, will give the required peace of mind to investor and will draw in even more new investors looking for consistent margins. Lucknow is one of the property markets, which is on the radar of foreign investors and buyers in this market can hope to reap all the benefits associated with foreign investments.

Price Trends of Properties in Lucknow

February 1, 2021 0 Commercial Properties Real Estate Industry Residential Properties

While looking to buy a new property it helps to check as to how have the prices moved in a particular market. It is important to check this both for the larger city/ geography as well as for the micro-market where one is looking to buy a house.There are several institutions which release data on price trends for major cities in India, however, the one released by National housing bank as NHB Residex is used most often. There are price trend charts also available for different localities within a city as shared by various property portals like 99 acres and magic bricks. 

Lucknow is one such market that has continuously shown an upward moving graph for residential properties in all major localities of the town. A generally upward moving graph suggests that the city/ area is being favoured for buying property, while a downward graph is for a city/locality which is not being liked in general. Considering this, study of price trends could be a great starting point while zooming in to decide where to buy a property and price trend charts for Lucknow suggest a highly positive propensity to buy a residential property here.

Lucknow is one of the few cities in India, where the Housing Price Index has shown a strong positive movement both for constructed as well as under construction properties. Since June 2019, the quarter on quarter increase in properties has been remarkably positive and has touched almost a 10% year-on-year increase in certain localities. The neighbourhoods which have seen the highest annual appreciation in property prices are Gomti nagar, Gomti nagar extension, Kanpur road and Raebareilly road. This is very encouraging considering that prices in most of the cities across India have fallen in last 2 years.

This price trend becomes even more interesting when we look at it from the perspective that there is an increasing demand for bigger unit sizes post Corona induced pandemic. It is also important to note that Lucknow market offers excellent opportunities to buy in certain localities which are in and around Gomti nagar and Kanpur road area. Considering few good properties on offer in these areas and a favourable disposition to own these, it presents an excellent opportunity to invest here.

The onset of pandemic has also ensured that economies world-wide increased money supplies to reduce the impact of lockdowns on their economies and their citizens. This has resulted in increased flow of money in developing markets like India, which is sure to find its way into property market. This when coupled with the fact that the housing loan interest rates are at historically low levels, makes this opportunity even more inviting. A recent report from HDFC, the largest mortgage lender of India, also shows that with increasing salaries, the affordability of properties have increased substantially.

All these factors make year 2021 as the year of turnaround for property markets across major cities in India. Lucknow, which has not faced the heat faced by other property markets in last few years, is expected to lead the wealth multiplication in property investments. With a massive vaccination program underway and people looking to come out after a hiatus, the hope for economy doing better is on the horizon. If one scans the news, the new deals in properties are showing a firm and definite trend towards positivity. There are more people looking for property now compared to previous years, while the new supplies have not been created in last few years. All these facts will lead towards an impending property boom in near future.

Indian property market is at a point of inflexion right now. While we discussed about some of these factors in previous paragraphs, there is a larger play expected because of the various economic reforms initiated by government in last few years. There was a clampdown on cash transactions, which had hit the property sector adversely in short run. However, this is forcing more transparent buying and selling of property. Such measures always help improve the customer confidence and it will result in more customers getting encouraged to invest in property. Also UP RERA has been one of the most proactive regulator body. This is another measure which has helped improved customer sentiment. While this had a negative impact initially, as builders and customers were trying to understand its implications, RERA is expected to give new impetus to property market.

The structural demand for housing in India will continue to flourish in many years to come. A population which is still very young with majority of them just entering the employment creates ample requirement for housing. Various government incentives like Income tax waiver on one side and interest subsidy for small dwellings on the other are enticing buyers. While historically 37-38 years was the age when people typically bought property, with various incentives and increasing incomes is expected to push people in early 30s towards buying their own home.

There is absolutely no doubt that the money supply is increasing and we will see many large deals by private equity players in India. Lucknow as a market has emerged as a popular choice for multiple real estate players to offer residential properties. There has been  consistent improvement in infrastructural facilities in the city. All these factors are sure to support the structural expansion of residential property market of Lucknow. While property market is looking at a bright future, the expectation of a high growth regime is looking a certainty on the Indian horizon. IMF has predicted a 11.5% GDP growth for India for 2021-22. This will result in a never before seen expansion of employment opportunities and swelling incomes.

Paarth infrabuild has always ensured keeping its customers at the center and helped buyers derive value from their property purchases. With its residential developments in the fast appreciating corridors of Gomti nagar extension (Shaheed path) and Kanpur road, it is well positioned to deliver tremendous value for years to come. The price trends of these properties and micro-markets are encouraging prospective customers, which is driving a surge in enquiries.

Why Real Estate is a better investment than Equity

January 18, 2021 0 Commercial Properties Real Estate Residential Properties

The debate as to which is a better investment opportunity – Real Estate or Equity, when one is looking for high returns, is one that continues. However, there are facts which clearly establish superiority of Real Estate investment over equity investments. One of the most important reason in support of it, is the lesser volatility of prices associated with RE prices. You could not be away from the market, if you have made equity investments, while you don’t check land prices every day and do it only when you need to sell.

Why Real Estate is a better investment than Equity
Why Real Estate is a better investment than Equity

One point repeatedly put forward by Equity enthusiasts is that real estate is lumpy and illiquid. But what these people miss out is that wealth generation is not a target to be achieved in a few months or a year. It is meant to help achieve life goals over 10-15 years. Also, real estate generates supplementary cash flows in the form of rental income, which is almost always better than the dividend income one can expect from equity investments.

The nature of equity investments is such that the investor could never predict the facts of how his investments would perform over a longer time frame. Look at what happened in the case of a yes bank or a Reliance power. People lost almost entire invested amounts due to wrong disclosures by directors of these corporates. On the other hand, a real estate investment has a material value that can be ascertained by anyone to a great degree of certainty. This ensures that the best analyst and the worst in case of land price will differ only by a few percentage points, while in case of equity, this difference could be in 10s of percentage.

A certain group also propels equity investments through mutual funds investment. Agreed, that mutual funds avoid the risk of volatility in only one scrip, but the volatility is still much higher than Real Estate. Also, analyzed over a long period of time, mutual funds have also not been great wealth creators. And if they don’t serve this purpose, they lose the right to be compared with real estate investment, which has helped people across India to create wealth over years.

Another factor that supports real estate investments is the ability of an individual to get funded at a highly subsidized interest rates by taking a home loan, to buy a property. Can you get a loan to buy into equity? The fact that one can fund the real estate investments through a loan results in taking benefits of higher than calculated returns. If the price increase in property has been more than the rate of interest on loan (which generally is the case), one earns returns also on that part of investment that was done through home loan money.

However, it is to be understood that the property should never be used as a short-term investment tool. And one could argue in favor of an equity investment for short term. Finally, the tax advantage offered on housing loan both on the principal and interest amounts make the returns even sweeter and therefore, property should always be a part of your investment portfolio.

Paarth Infrabuild: An ultimate commercial space for your business

December 11, 2019 0 Commercial Properties

You would agree that putting resources into real-estate is one-time speculation, so make a sharp move and spend your well-deserved cash in Paarth InfraBuild, Lucknow. Paarth Infrabuild has four major projects which take into account the various prerequisites of the general population. The properties of Paarth Infrabuild are situated at the most prime areas in the city of Lucknow and have various lifestyle facilities within the neighborhood of the project, and traveling from one place to another is very easy.

The four top projects by Paarth Infrabuild are:

1) Paarth Republic: The Paarth Republic is a super township venture created by Paarth Infrabuild on Kanpur Road, Lucknow. Spread crosswise over a zone of 80 acres of land, every corner of this development has been equipped with well-structured lush green landscapes. This township has a few towers named Canary, Goldfinch, Falcon, Starling, Humming, Pelican and GreenShank.

2) Paarth Arka: Paarth Arka, located at Lucknow’s Shaheed Path, has luxurious and classy spaces which you had been looking for in your office. Being a RERA (Real Estate Regulatory Authority) Certified Project the buyers don’t need to stress over the nature of material utilized in development. The spaces offer vital amenities to its occupants like 24*7 power back-up, security, lift, pool, and so on.

3) Paarth Aadyant: Settled in Gomti Nagar Extension zone, purchasers of Paarth Aadyant can separate themselves from contamination and jam-stuffed zones. The area has an excess of greenery which helps employees to lead and healthy lifestyle. Society has all the modern amenities for your convenience like Indoor game rooms, lawn tennis, multipurpose court, and much more.

4) Paarth NU: If you wish to have a property that has all the convenience and has pristine green views, then you must take ownership at Paarth NU. Paarth Aadyant Complex, NU extends classy lifestyle resolutions for transporting executives, entrepreneurs, and families looking for comfortable and yet extravagant living options.

Conclusion:

Paarth Infrabuild is a well-known real estate brand in Lucknow, and the quality of material which they use in their construction is of supreme quality. End your search of finding an ideal buy commercial property lucknow with Paarth Infra, as the spaces are constructed keeping in mind the growing necessities of the people. Give your business a boost by investing in Paarth Infrabuild. And at such affordable prices, you get luxurious spaces. For more information visit: https://www.paarthinfra.com/

Factors You Must Consider Before Buying a Commercial Space

December 11, 2019 0 Commercial Properties

A right commercial space can either build your business or could break your business. There are a lot of spaces available in Lucknow that promise different things but don’t offer services up to the mark. There are a lot of things that you need to consider before purchasing your property. Below we have listed points that you must consider:

1) Pick an area Near Your Team

If it is certainly crucial for you to have a dedicated office area, then the location is likely the most important factor that you must consider when you’re renting your first office space. You first need to assure that the commercial property in lucknow is close enough for your employees to commute. Or on the other hand, if you don’t have a team currently, pick an office that’s close enough to a region that has skilled & educated job seekers.

2) A set of amenities that you want nearby

Another factor that could impact your decision for the location before you plan to make an investment is the nearby amenities. Your team will likely desire an office space that’s at least slightly close to eateries, popular nearby attractions, and coffee shops. And if there are specific places you need to attend regularly for trading purposes, like meeting spaces or banks, you’ll need these to be nearby as well.

3) Size of your commercial space: You don’t purchase an office space daily, so get a place that matches well with your vision of ideal office space. Every entrepreneur has a distinct requirement of how large their office space should be. Generally, people buy a property that is spacious, so that if the team members increase they can easily accommodate everyone.

4) Easy payment options: For instance, you get a chance where you can pay for your commercial space in simple installments, at that point you should steal that plan at the earliest possibility. With a low rate of interest, you can pay the outstanding amount easily.

Conclusion:

There are a number of other factors that one needs to keep in mind before finalizing the commercial space. When you plan to make an investment in Lucknow, you must consider Paarth Infrabuild for all your requirements. With supreme quality construction material and luxurious amenities, the property has everything for everyone. There are four main projects by Paarth Infrabuild which matches with the different requirement i.e. Paarth Republic, Paarth Arka, Paarth Aadyant and Paarth Republic. For more details about our properties,

Please visit: https://www.paarthinfra.com/