Real Estate Developer

What should developers do in a challenging market

September 28, 2020 0 Real Estate Real Estate Industry

The real estate market heading into the current crisis has sometimes been described as the real test of character of developers. The deepening economic impact of the coronavirus pandemic is felt worldwide. It is not only the immediate economic challenges which are worrying developers, but also the imminent social and behaviour changes in buyers. It will push us to learn to cope with and embrace a new professional paradigm.

  • What should developers do in a challenging market

Despite the chaos that’s taking hold in the broader market, real estate developers can apply brave but smart strategies to keep their projects going and assets producing. There have been instances of existing businesses cutting down on their manpower or reducing salaries across the board, which will leave lesser money in the hands of consumers, resulting in problems with existing customers who may be on an instalment plan. Also the prospective buyers will be squeezed for funds and there is real danger of reducing per unit price. Some of the investors who had been holding on to their investments in the hope of better returns, may come out to sell in desperation, forcing the prices further down.

What then, a real estate developer can do to survive and come out stronger on the other side of this crisis. There are opportunities which will need to be tapped with a suitable plan. In the space of customer inquiries, it will be prudent to increase spends on creating brand in digital world. With people spending more time indoors and working long hours on their computers, it is quite intelligent to create a connect with customers online. Also, customers try to interact with brands in various ways as online search and research is very intuitive. The developers who could create a simulacrum of the customer buying cycle and fill all the gaps that might exist in digital brand positioning, will walk away with bulk of online enquiries. It would be worth presenting to customers the options understanding the current state of customers.

Another opportunity that presents itself to the developers is in terms of canvassing for upgradation. There is a sizeable chunk of people, who have paid off the housing loans they had taken for their first homes. It is time to give them compelling reason to upgrade or buy another property. Historically low interest rates and availability of good options at considerably stable prices will drive in bargain hunting investors with surplus funds. Can a developer reorient its product proposition to suit their requirements.

The onset of long term social and behavioural changes should also be considered in redrawing the product design as much as possible. In days ahead, functionality of design will win over luxury. It will be smart to reorient designs keeping the new social habits people will form. A great outdoors within the precincts of project may become more attractive than a high end club house. Large open though covered spaces for small group conversations would be inviting for more people than a large banquet hall. Provision of health care facilities and good house keeping services will trump a restaurant or a coffee shop. A developer sensitising and orienting the design and construction team to these realities will be a winner compared to the ones who don’t do this.

Every challenge hides an opportunity in its lap. It needs effort to recognise the same and work to capitalise to come out on top once the challenging situation is over. Time will tell us how manages the crisis period proactively and wins and who gets crushed under the weight of inaction.

Vertical expansion – Answer to urban land scarcity

September 25, 2020 0 Real Estate Real Estate Industry Uncategorized

India is witnessing an unprecedented growth in urbanization. Better health care facilities and educational and job opportunities are driving people from rural areas to urban centers and resulting in huge population growth. This brings the challenges of land planning and environmental control to town planners. Expanding cities horizontally to make room for all these people will end up destroying more natural resources and therefore vertical growth of cities is being considered as a viable option. Building upward instead of outward enables us to host large number of people in a small area, conserving land and natural resources. The remaining and available land, therefore, could be used to create civic infrastructure for the population living in the locality.

Vertical expansion – Answer to urban land scarcity

The advent of high-rise buildings have also coincided with provision of world class amenities in housing projects. A vertical growth also offers people living on higher floors a panoramic view of the city around and makes life beautiful. A high floor living also avoids noise pollution and other challenges which affect quality of life in low rise developments. Various amenities including car parking etc can be managed in the basement and lower floors to ensure a smooth passageway to walkers. With fast lifts fitted in these buildings there is no challenge in moving between floors. In fact, all the premium buildings in mega cities like Mumbai and Delhi NCR are vertical developments.

Vertical buildings could also offer other environmental benefits. Having numerous services and amenities in the same tower would reduce the need for moving around. This can also save fuel and energy.

These buildings also create social connectivity by making it easier for individuals to socialize in common areas and visit friends. More like minded people in one place also offers opportunities to create micro-communities based on interest in these housing societies, reducing the need to go out and socialize. As more families live in a small foot-print, it is easy to develop social and civic infrastructure in that area as the users are already there.

Earlier people were concerned about multiple inconveniences related to high-rise living. However, with advent of better technology in almost every aspect, these are no more the real challenges. The modern building design and construction technologies ensure that we can keep building higher without worrying about structural safety. In fact, these building designs are more resilient than the traditional low floor construction. Most Indian cities have now 24*7 power supply, resulting in no downtime for various equipments including elevators in these buildings. The building safety norms are in place and following these is mandatory, making these buildings safer. Also, a behavioural factor weighs in, as high rise developments are done only by large developers with help from reputed construction companies, they offer better construction quality than the houses built by part time developers.

Vertical expansion of cities, without a doubt is viable solution to urban land scarcity. For the people who live there, also taste the luxuries of life which are not easily available in low height developments. It is not uncommon to see a prestige associated with this living.

Future of Real Estate Industry in Lucknow

August 20, 2020 0 Real Estate Industry

Lucknow has been one of the fastest growing towns in India. The real estate market which has struggled across India has been able to keep the momentum going in this city, especially in certain localities, due to various factors. A positive government, which is great at execution, a city that is known for being peaceful and the presence of excellent infrastructure created by successive governments, make this an ideal place to live and earn a living. There is no doubt that lower GDP growth affected the price appreciation here too. However, if there is one town which will start looking up quickly and it is Lucknow.

The reasons for this optimism are not hard to come by. For migratory laborers, who fled from large industrial towns in west and south during the early days of Covid-19, are closer to Lucknow than any other developed city. Therefore, the supply of labor will not be a constraint here. Similarly, the town also has huge investments coming in from rural areas of Eastern UP. The rural economy is doing well and the recession in the consumption of other items will result in people with a substantial agricultural income to have a higher surplus income. This will find its way into the Lucknow housing market as people will look for towns with good health infrastructure. Lucknow will be the first choice in this entire region for people.

One thing which is important to be kept in mind during this time is that it is foolhardy to assume that all the localities in Lucknow will see good appreciation. There will be areas that will be preferred over others. And the factors which will decide this are simple – Availability of apartments with world-class facilities, safe and well-sanitized areas, and social and medical infrastructure suitable to fight repeated outbreaks of pandemics. If one scans through Lucknow city a few areas stand out in this test. Areas in Gomti Nagar and Gomti Nagar Extension around Shaheed Path and near Airport can be expected to appreciate much faster than other residential areas. These areas are located near some of the best social and medical infrastructure. These localities also boast of some of the best housing developments with excellent amenities and are considered to be the safest and most hygienic parts of the town.

Real estate in lucknow,Real estate developer in lucknow

The growth of the housing market in Lucknow city is getting on track gradually and is certainly waiting for an opportunity to start its march up. It is of course difficult to precisely predict as to who will this start happening but for any keen eye, it is not difficult to find this opportunity. And this opportunity is being looked at by people across the state and nation, which makes the outlook even brighter. The current state government is ranked high on various parameters of governance and industry is showing a higher level of trust in the state than shown ever in the near past. These factors will weigh on what looks a logical flow of money and it is, therefore, easy to conclude that the future of the housing market in Lucknow is one of the brightest spots one can locate right now.

WHY TO INVEST IN REAL ESTATE

April 14, 2020 0 Real Estate

There is no doubt that these are uncertain times. Uncertainty about the future of economy and about our social relationships. For now, the focus worldwide is on creating a healthcare infrastructure that can help the civilization to sustain in the face of Corona virus. However, there are some less-reported developments, which are important for our future. Let me try to delve deeper into some of these aspects, which will have a long lasting impact on all of us.

As a response to the Covid 19 induced challenges, the governments worldwide have committed funds to fight this menace. That’s a wonderful news, because governments everywhere have shown a firmer resolve to fight a problem that has hit everyone, ever in the history of mankind. Starting from US to Japan to Europe and including middle-east to India, every government has simply opened its purse to pump in money into the businesses and healthcare infrastructure. It is estimated that all governments put together would invest close to 2% of world’s GDP into fighting Covid-19 pandemic. Now that’s a lot of money. We have never seen this kind of money supply coming all at once.

So what will this money do and where will it go. Let us look at history and try to figure out how this money would flow in and what would be the response. This money will start flowing into various infrastructure projects across the world. We have seen this story playing out so many times in past. Let’s take example of the world after Second World War. While, anyone around there at that point of time, would have thought that countries like Japan and Germany will never be able to grow out of world war devastation, what we see is completely opposite. The two countries not only repaired themselves but became the foremost world economic powers over the years after the war. Both of these economies are part of the top 5 economies of the world and the most stable ones.

The same happened during the great depression after the World War 1 and the oil price induced depression of 80s. Even if we look at our own Indian stories. In 1990, we reached a level where we felt like collapsing economically. There was a time during PM Chandrashekhar’s rule, when we didn’t have money to meet our debt commitments and we had to pledge our gold reserves. But what happened in the years after that. Did not we see the biggest asset growth in 30 years starting in 1991? It may look counter-intuitive when we are inside a crisis but when looked at retrospectively it all started making sense. The people who had the foresight to buy assets during those times of crisis, earned sweet returns on their investments. But those who were afraid and did not invest in assets, were left high and dry. The high inflation reduced the value of liquid holdings significantly.

Let us look at another aspect of this economic fight against the virus. Remember, since the world is fighting this together and it is known that if Corona virus simmers in any geography, it will affect the entire world, the movement of money will be swift across the borders. Fortunately India is at the forefront of this war against virus. There are several reasons for the same. Our large young population makes it an interesting case to watch out for how the virus story plays out here. We will discuss more about its impact in the next paragraph. Another contributing factor is our leadership position in Pharma production. Thirdly, our big IT sector. While China has been losing trust of the world as a dependable supplier, the democratic nature of our country enthuses more trust in other countries.

So why will we be better off with a younger generation? One, the mortality rate in youngsters is significantly lower than the older generation. We have a significant percentage of our population younger, which is much more than any large economy. This coupled with the fact that the way China has handled the Corona pandemic will bring India at the forefront for the corporations who want to move out of China and relocate. The Indian response to this pandemic and the statesmanship that our leadership has shown will keep us in good stead. Our leadership position in Pharma industry and our positive contributions to world society’s sure to make world look at as much more favourably. The idea of looking only at efficiencies while ignoring behaves aspects completely has made the world realizes the kind of challenges it poses. And therefore, we already see a much more positive tone for India than China or any other country.

Another significant change that the world will face on behaviour and social aspect is also a big plus for India. We are going to see a big shift in our behavior when technology will become much more important than what it has been. The social distancing will be the new norm and work from home the new corporate mantra. Outsourcing of work will get more traction and technology will be the way to go, for most developed western world. India holds a significant advantage in this area with significant progress over last 2 decades.

But how is all this going to affect me? And what should be my actions now which will benefit me economically in future. With expectation of these large government spending worldwide finding a route to India as deduced above, will create a surge in the prices of physical assets in India. While virtual assets like shares and bonds may take a long time to appreciate, physical assets like real estate will be appreciating fast and for a long term. Added to the fact, that new developments of real estate projects have already been very low as the segment has been facing head winds for years. The property prices have not appreciated for last few years and supplies are constant. With new norms of social distancing in place, the laugh of new projects will be much slower. So we will be in a state where too much money will chase too few assets. And that is when we will see a fast and sustained increase in real estate prices. Our parents have seen it and benefitted from it in earlier moments, now is our time to invest in Real Estate and earn long term. So, if you have some liquid funds, keeping it like that is sure to erode its value. However, investments in Real estate when economy is tumbling, is sure to help you make a fortune.

For more information please visit our websit:www.paarthinfra.com

Housing for All | “Sabke liye Ghar”

December 11, 2019 0 Real Estate Industry

In the year 2017 for better regulation in the real estate industry, a series of reforms were made like for ensuring transparency in real estate sector RERA was introduced which made the developers to disclose their timelines for their building process. The other massive change was introducing the GST bill in the real estate sector which aimed to reform the tax structure by making it more uniform. But none of them were as impactful as Government’s Housing for All scheme. This will make it easier for the weaker section of the societies to acquire safe loans and invest in making their homes.

Pradhan Mantri Awas Yojana (PMAY) is an initiative by the government under the Prime Minister Narendra Modi under which housing will be provided to urban poor with a target of building 20 million houses by 31st March 2022. Under PMAY, it is planned to build 2 crore houses for urban poor including Economically Weaker Sections (EWS) and Low Income Groups (LIG) in urban areas by the year 2022 through a financial assistance of ₹2 trillion (US$30 billion) from central government.

It has two components:

  1. Pradhan Mantri Awas Yojana (Urban) (PMAY-U) which will target the urban poor.
  2. Pradhan Mantri Awas Yojana (Gramin) (PMAY-G) which will target the rural poor.

The feature of Pradhan Mantri Awas Yojana is that the government will provide an interest subsidy of 6.5% on housing loans availed by the beneficiaries for a period of 20 years under credit link subsidy scheme(CLSS) from the start of a loan. This scheme will comprise of other schemes that ensure that every house will have a toilet, electricity connection, LPG gas connection, drinking water accessibility, and many more. The houses under PMAY would be constructed through a technology that is eco-friendly and preference will be given to an older person and differently abled person for the allotment of the ground floor.

This scheme is comprised of three phases:

Phase 1 – (April 2015 to March 2017) to cover 100 cities.

Phase 2 – (April 2017 to March 2019) to cover additional 200 cities.

Phase 3 – (April 2019 to March 2022) to cover remaining cities.

Private contributors such IIFL home loans have been helping the beneficiaries to avail government subsidies. ICICI bank also giving subsidies to the eligible people for the scheme. AU Housing Finance Limited has also been giving subsidies under the scheme.

Conditions for PMAY:

  1. Maximum age limit is 70 years.
  2. Economically Weaker Sections (EWS) annual income should be less than 3 lakh Low Income Groups (LIG) annual income between 3 lakh – 6 lakh.
  3. The beneficiary should not have any dwelling unit on the name of any family members in any part of India.

Under this scheme, the houses will be owned by females or jointly by the males. This will help to increase the women empowerment in India.

Paarth Infrabuild, Real Estate Developers, Lucknow, Uttar Pradesh, India

Paarth Infrabuild – Everything Under One Roof

December 11, 2019 0 Real Estate Industry

The demand for leisure apartments has increased remarkably in recent years. Kitchens are equipped, with the latest gadgets and devices; parks & gardens, are turned into a fundamental ecosystem; pools and rejuvenating areas for maximum relaxation; and contemporary recreation zones for kids & adults. Today, developers are offering everything under one roof for the convenience of the customer.

Paarth InfraBuild, the well-known real estate developers in Lucknow, is offering premium housing solutions for all. Just list down the things you wish to have in your dream home and pick the one that matches the best with your list from Paarth Infrabuild’s projects.

Paarth InfraBuild,Paarth Republic ,Paarth Arka

The projects by developers are according to the different set of buyers and are designed keeping in their various needs. The four prime projects by Paarth Infrabuild are:

1) Paarth Republic: The Paarth Republic is a mega township project developed by Paarth Infrabuild on Kanpur Road, Lucknow, which makes it ‘buyers first choice’. These apartments are not just a portion of 80 acres (1 acre = 4047 sq.mt.), it is regeneration in the Real Estate sector. Canary, Goldfinch, Falcon, Starling, Humming, Pelican and GreenShank are the various townships under the umbrella of Paarth Republic.

2) Paarth Arka: Paarth Arka, inhabited in Lucknow’s Shaheed Path, is an aesthetically outlined creation of 3 & 4 BHK residencies. Being a RERA (Real Estate Regulatory Authority) Certified Project, the customers don’t have to worry about the quality of material used in construction. The apartments provide necessary facilities for its residents like 24*7 power back-up, security, lift, swimming pool, recreation rooms, etc.

3) Paarth Aadyant: Settled in Gomti Nagar Extension area, residents of Paarth Aadyant can distance themselves from pollution & jam-packed areas. The estate has an excess of greenery which residents need for a healthy lifestyle. The society has all the modern amenities for your convenience like Indoor game rooms, multipurpose court, lawn tennis, and children’s play area for your fun & relaxation.

4) Paarth NU: An excellent property for all nature lovers with pristine green landscapes and fresh air; you can settle in the lap of nature with Paarth NU. It offers classy lifestyle solutions for everyone who is looking forward to luxurious yet healthy home options. Conclusion:

Gone are days when indulgence indicated lavish homes with modern furnishing and elegant enhancements. Today, the extravagance list comprises ‘smart homes’ with top of the line amenities as well as innovative advanced security. Projects of Paarth Infrabuild are constructed to provide the best living standards to the customers. For more information visit: https://www.paarthinfra.com/

Stop Your Search for Your Service Apartment with Paarth Infrabuild

July 22, 2019 0 Real Estate Industry

Lucknow, the city of Nawabs, is developing at a very fast pace. With the introduction of metro rail in 2017, Lucknow has joined the league of others in becoming a smart city. This has also led to a boom in the real estate market in Uttar Pradesh. Investors are keen to pick the right investment options in real estate to reap the maximum benefits in the future. Several business houses are also setting up offices in Lucknow and exploring the options to set up service apartments for their executives. Finding the right service apartment which is at a great location, offers amenities and ease of access, and within the budget can be challenging. But with Paarth Infrabuild, you can be assured – you are in safe hands!

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Why Paarth Infrabuild?

Paarth Infrabuild is RERA certified top real estate developer in Lucknow. Through the years, Paarth Infrabuild has earned a name for itself to become a reliable, recognized and recommended name in the real estate sector.  Development of residential property is one of the key forte of the group. Paarth Infrabuild prides itself in setting the benchmark of innovation in the real estate industry.

Paarth infrabuild

 

It has developed 4 major projects in Lucknow customized to the needs of the clients. The residential projects developed come with premium fittings & fixtures along with round the clock power backup, excellent ventilation & designs that ensure optimized natural lighting, and word class club facilities.  To ensure maximum safety of the residents, earthquake resistant RCC frame structure is used for construction. Paarth Infrabuild is an environmentally conscious company and reduces its carbon footprint by using eco-friendly building materials and technology.

Choosing the right project for the best service apartment

A service apartment is a cost-effective option which comes with all the basic amenities of a hotel but is substantially cheaper than hotels. A recent trend indicates that business travellers are likely to prefer a service apartment over a business hotel due to the extra space, privacy and flexibility offered. So it is important to choose the right residential project which can house the service apartment. Each of the four projects developed by Paarth Infrabuild offers something unique to suit your needs. If you are looking to buy a service apartment at one of the projects of Paarth Infrabuild, the dedicated customer service team at Paarth Infrabuild is available 24 x7 via email, phone, chat, and social media. Please visit: https://www.paarthinfra.com/ to know more.

Unbelievable Facts about Real Estate in Lucknow!

July 20, 2019 0 Real Estate Industry

Lucknow, the capital of Uttar Pradesh, is famous for its rich cultural heritage. At present, it is also one of fast emerging metropolis in the country. Lucknow is on the list of being declared as a smart city.  The city has witnessed a level of investment and influx of migrant population. Several industries and government organizations have opened offices in Lucknow. In a nutshell, Lucknow is experiencing economic boom. Together with the economic boom, the real estate market of Lucknow is also booming. It has become one of the preferred destinations for people residing in other cities of Uttar Pradesh as well. Investors are flocking in from different cities of Uttar Pradesh such as Allahabad, Bahraich, Barabanki, Kanpur, Sitapur, Sultanpur, Varanasi, and Unnao to Lucknow in search of their dream home.

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As per the data available in 2018, the National Housing Bank’s price index for under construction properties has recorded an overall increase in 39 cities with the maximum price growth of 9.4% recorded in Lucknow.

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It is abundantly clear from the above – the real estate market in Lucknow is booming. But ever wondered why did the sudden boom in real estate sector happen? We have set out a few key reasons responsible for the growth story of real estate in Lucknow.

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As indicated above, there are several reasons that have led to the massive boom in the real estate market in Lucknow.

Social Infrastructure: Lucknow is very well connected when it comes to the social infrastructure. The city has four highways: NH 24 connects Delhi, NH 25 connects Bhopal via Jhansi, NH 28 connects to Mokama (Bihar), NH 56 to Varanasi and four State highways viz. SH 25 connects Hardoi, SH 36 connects Rae Bareli, SH 56 connects Sultanpur and SH 40 connects Mohaan.  Amar Shaheed Path or an elevated road, starts from Gomti Nagar and ends at Kanpur Road and connects large parts of the city. Lucknow also enjoys great rail and air connectivity. The icing on the cake has been the development of Lucknow Metro. This has resulted in the development of a number of real estate projects.

The Real Estate Developers: Residents of Lucknow are attached to the city. They have bought plots of land for their forever homes. Research indicates that Lucknow has witnessed private developer presence more than 30 years ago with planned plotted developments by some local developers. In the last few years, several real estate developers have entered the market. These developers have helped in the establishment of multi storied projects and modern townships.  The developers have also purchased plots of land which are auctioned by the Lucknow Development Authority or the Uttar Pradesh Housing and Development Board. Majority of these lands are in and around Faizabad Road, Gomti Nagar Extension, Rae Bareli Road and Hardoi Road. Accordingly, a number of real estate projects have come up in these areas.

The Boom in Population:  Lucknow has also witnessed a phenomenal growth over the last few years. Policy initiatives of the government and the boom in the economy have resulted in job opportunities, growth of business and a better standard of living. This has also led to an increase in the population of the city. People from neighbouring cities are now migrating to Lucknow in search of a better quality of life. This has provided a boost to the realty in Lucknow as well.

Easier Sources of Finances:  Borrowing a home loan has become easier than before. Banks and NBFCs have slashed the home loan rates substantially. In fact, SBI offers the Lowest Home Loan Interest Rate Starting at 8.40%.  Access to cheap home loan rates also means that people have more liquidity to afford real estate. As a result, the real estate sector has received a fillip.

Rise of Medical Tourism in Lucknow: The city is a growing hub of medical tourism. It attracts a lot of patients from Nepal every year. The government of Uttar Pradesh is committed to make Lucknow one of the top medical destinations in the country. Several multi speciality hospitals have been set up in Lucknow with world class facilities. This has resulted in the influx of both patients and medical professionals looking for housing options in Lucknow. Therefore, rise of medical tourism has also led to the growth of real estate developers in Lucknow..