Costliest property in india the Lutyens Delhi Khan Market

Lutyens Delhi Khan Market is India’s new elite high street, and has emerged as the most expensive retail location, within India. The last one year, has seen Delhi’s micro markets dethroning those of Mumbai, only to emerge as the costliest markets of the sub-continent.

Ranking 24th on the global list, Khan Market should be chuffed about itself, as that is quite something, considering it didn’t make it to last year’s list, when Mumbai’s No. 41, Linking Road was the top Indian market.

Fifth Avenue, New York continues to retain the top position, closely followed by Causeway Bay in Hong Kong in the second position, and Paris’s Avenue des Champs Elysees coming in third. Cushman & Wakefield (C&W), the global real estate consultancy firm that sends out an annual report called Main Streets Across the World 2006, bases it on global retail rents and ranks world markets, accordingly.

The insatiable demand for rental space in Delhi has caused rents to soar, and last year, Delhi’s rental increases were highest world over. During this period, retail space rentals in certain micro markets of Delhi like Greater Kailash, South Extension and Connaught Place, more than doubled.

The retail rental increases were also in part, due to the sealing drive undertaken by Delhi’s civic authorities under instructions from the Supreme Court.

And, it was South Extension that witnessed a 111.5% increase from last year’s retail rents of Rs. 220 per sq. ft. to Rs. 550 per sq. ft. per month. Similarly, retail space rents in Greater Kailash and Connaught Place increased by 110% and 100% in the last one year to Rs. 525 per sq. ft. per month and Rs. 400 per sq. ft. per month, respectively.

This while, Mumbai markets were witness to a relatively moderate increase in retail rents. Linking Road that commanded the highest rental rates in India at Rs. 285 per sq. ft. per month a year back, increased them by 58% to the present Rs. 450 per sq. ft. per month. Similarly, other areas like Kemps Corner and Colaba Causeway also witnessed rental rises of 28% and 36% costing Rs. 275 per sq. ft. per month and Rs. 225 per sq. ft. per month, respectively.

The Indian real estate juggernaut, whether commercial or residential is on an unstoppable roll!

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Estimating market value of property

Anytime you buy or sell real estate, you need a real estate appraisal. The primary purpose is to find out exactly how much your property is worth. Banks and similar lending companies also require it, before a buyer can obtain a mortgage. A real estate appraisal develops an “educated and trained opinion” on the value of the property. It also, in some circumstances, may ascertain the best use of the property, garnering the best selling price. For example, a long-time residential property may be in an area that has been rezoned for limited commerce, which could potentially bring in a higher sales price than marketing the real estate to potential residential buyers.

An appraiser differs from an inspector, who is looking for things that need to be corrected, repaired or replaced — things that are required by law to be completed before the property can be sold or to enhance your sale price. Though an appraiser will look at these same things, he/she is only interested in developing the value of the property. A real estate appraisal is based on the highest and best use of real property — what use of the property will produce the highest possible value? The final appraisal must be both profitable and probable. The real estate appraisal includes a definition of the type of value that is being developed — whether it is a market value (what most sellers need), a condemnation value, quick sale value, and so on. The Process The appraiser looks at each property individually, beginning with an objective inspection of the interior and exterior of the home or building, as well as driving through the surrounding neighborhood. The appraiser looks for the assets, as well as the detriments, of the property.

For homes, gross living space, quality of construction, location, layout, the number of bedrooms and bathrooms, the lot size, condition of the home and land, central air conditioning, landscaping, number of fireplaces or the lack thereof, decks, pool, fencing, recent renovations, amenities provided by the surrounding neighborhood, and crime statistics of the area are all considered by the real estate appraiser. Living space is calculated by measuring the outside of the home. It does not include such areas as the garage, porches, sheds, and so on. Basements are generally calculated separately from the living space. The contributory value of basements is determined by the local market, government regulation, if it is finished or not (and the quality of the finish), and so on. The real estate appraiser usually only considers permanent buildings within his/her appraisal. Fixtures that can be relocated, such as above ground pools and sheds, are not included in the appraisal. If you are the real estate seller, you should point out any features, amenities or improvements of your home that are not readily discernable.

Next, the real estate appraiser analyzes the available market data for your area and the surrounding neighborhood, including current and historical comparable sales, current offers for comparable homes, pending sales, and proposed improvements. The appraiser gathers data from a variety of sources, as well as his/her own personal knowledge of the local market. The appraiser then compares your real estate to the broader market. Each real estate appraiser has his/her own process of analyzing, collecting and reconciling the needed appraisal data. If you get five different appraisals for your real estate, you may receive five different appraisal opinions. They should, however, all be within a similar value range, if they are completed within the same timeframe and under the same conditions. Though the real estate appraisal is not for public consumption, it may be shared with all parties concerned. For instance, a buyer has offered $150,000 for a home, but the buyer-side, commissioned appraisal value is only $146,000.

Sharing this appraisal with the seller means that the owner can do needed improvements to bring the price up or offer the real estate to the buyer for the appraisal amount. For the highest appraisal possible, real estate sellers should have an inspection and appraisal done before putting the property on the market. First, the inspection in order to make any needed repairs or renovations. Then, get the appraisal to ensure you are getting the most for your real estate.

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Next IT Hub Hyderabad or Bangalore

From being a relatively low-profile state on the country's infotech map, Andhra Pradesh has gradually come into the limelight with the IT boom.

So much so, that it’s being seen as the next IT destination after Bangalore. But with an ambition to match strides with India's IT hotspot, Hyderabad will sure have to take a gigantic leap to fulfill its hi-tech dreams.

With big names like Infosys, IBM, Wipro and Satyam looking at expansion plans in Andhra, Hyderabad could well become the next tech hub of South India. But does the city really have what it takes to crack Bangalore's infotech domination?

"There is no denying that Bangalore is way ahead, but we are certainly trying," Secretary, IT and Communications, K Ratna Prabha said.

Figures show that Hyderabad is still lagging far behind as far as numbers are concerned. Export earnings of Andhra Pradesh are at Rs 12,500 crore while Karnataka leads with Rs 80,000 crore. The total number of employees in the IT sector in Hyderabad is 1.5 lakh while Bangalore has as many as 4 lakh.

Despite the state government's incentives to attract IT investors through Infotech Special Economic Zones, experts say it's the growing real estate prices and infrastructural facilities that is forcing many multinationals to stay back.

"There's only so much that a city can handle. It’s saturated and rising real estate rates are now forcing many IT companies to move to smaller cities," Prof P J Narayanan, Dean (Research), Indian Institute of Information Technology, said.

After two decades of low literacy rates and little exposure to information technology, Hyderabad is trying hard to come up and compete with Silicon Valley's favourite – Bangalore. "The real estate market and its artificial price rise is discouraging many investors," Chandrababu Naidu, President, Telugu Desam Party, said.

For Hyderabad to get a larger share in the infotech pie, the state government will have to provide better infrastructure and more incentives for those looking to set up IT companies in the Pearl City.

Real estate booming in Nagpur

Business Standard presents exclusive excerpts from the forthcoming Market Information Survey of Households from the National Council for Applied Economic Research.
This four-part series, which began on Wednesday, will look at India's middle and rich income groups, providing details of where they live, how they have grown over the years and are likely to multiply.
Produced in association with Business Standard the survey will be published shortly. Watch this space for more announcements.
Nagpur's 425 crorepati households, or those with an annual family income of more than Rs 1 crore (Rs 10 million), may pale into insignificance in comparison with Delhi's 5,085 or Mumbai's 4,439, but the city has the sixth highest number of crorepatis in the country.
More important, in the period 1995-96 to 2001-02, the NCAER's latest household income survey shows, Nagpur had the highest annual growth in the number of crorepati households -- 91 per cent per annum.
That is, the number of crorepati households rose from 9 to a mindboggling 425 in this period.
Surat, the number two growth city as far as crorepatis go, saw its numbers grow from 3 to 146, which is a growth of an equally impressive 87 per cent.
Delhi and Mumbai had a much more sedate growth, of 28 and 41 per cent, respectively.
While this is clearly due to their much larger base, from a marketer's point of view, the high growth of the smaller cities is clearly more attractive.
Indeed, cities like Nagpur, Amritsar, Jalandhar have a higher density of crorepatis (the number of crorepatis per million households in the city) than metros like Chennai and Kolkata which have a higher number of crorepatis -- while Kolkata has 180 crorepati households per million households, Nagpur had 958 in 2001-02 according to the NCAER report brought out in association with the Business Standard.
The survey, being conducted annually since 1985-86, is conducted over 300,000 households country-wide.
Interestingly, this group of smaller cities (Nagpur has a population of just 440,000 households and Surat 620,000 households) are the country's growth leaders in most rich income categories right down to households earning between Rs 10 lakh and Rs 20 lakh (Rs 1 and 2 million) annually.
Other cities that figure prominently in the top-growth list are Vadodara, Vijaywada and Ahmedabad -- the last one though, saw a huge fall in growth in the 1998-99 to 2001-02 period and made it to the list only due to very high growth in the earlier period.
Not surprisingly, marketers across the country are now heading to smaller towns. And the results are already very good.
In the automobile sector, for instance, 2003-04 saw a 23 per cent growth in sales in the top 10 cities while those in the smaller 60 cities grew by a whopping 36 per cent.
Indeed, market leader Maruti Udyog sold 80,000 cars in this market, or about a fifth of its total sales for the year.
In the case of rival Hyundai which, though on a much smaller base, there was a 55 per cent hike in sales in this category of towns.
Indeed, according to an ACNielsen survey in October 2002, households in smaller cities like Nagpur and Coimbatore have a consumption pattern quite similar to the top six metros – indeed, in the case of categories like automobiles and home theatres, smaller metros may have an edge.
While 92 per cent of affluent urban households in smaller metros had a 4-wheeler according to the survey, the figure was 83 for the 6 top metros.

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This is my first post on guide2realestates. You can find interesting articles on real estate happenings in india.

An investor new to the investment scenario in India can research the cities with the available tools,calculate various necessary parameters such as E.M.I,Amortization schedule,Stamp duty & area conversion and search for properties in various cities. The website also has a section that educates an investors about the property matters.
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Some other websites resources

99acres.com,
abodesindia.com,
propertytalaash.com and
realestateonline.in