Commercial and Residential Real Estate in NCR

Commercial Property

Commercial Property consists of any property which can be used for commercial purposes which generate income such as retail shops, office spaces, food courts, cineplex, parking structures, conference plazas, warehouses, factories, IT Data Centres, & other shops. They are different from property that may be used for residential or agricultural purposes that although may generate income, are primarily developed for personal, not industrial or commercial use.

From an investment point of view, there are several advantages of investing in a commercial property than a residential property in India. They include:

  • Commercial properties are generally developed after a lot of research. The developer takes into account things like cost of land acquisition, construction and other costs to derive their profit margins. The property is thus generally at a location that is easily accessible and well connected, amid a catchment area with few competing projects.
  • It is easier to lease commercial property for longer duration to corporates creating stable, assured rental income for life.
  • A large office space can be divided into smaller sections if need be, ensuring financial viability of the investment.
  • Property management in commercial properties can be managed by professionals and be paid by tenants ensuring reduced stress for the investor as compared to a commercial property.
  • The return on investment on a commercial property is generally between 9-21%, while for most residential property investments the returns are 1-3%.

Speaking specifically about the Real Estate Sector in the National Capital Region, the residential property rates are stuck at the 2013-2014 levels. There is massive inventory with the developers with some reports suggesting it might take over 4 years for the inventory to clear.

The commercial property sector meanwhile is faring much better with prices up nearly 45% from 2013 levels and vacancy rate below 5% in many micro pockets in Gurgaon. The demand of office space from corporates, ITeS, and retail are the key drivers of this phenomenon.

Residential Property

Residential property is should be the property one buys for their own personal needs. Various types of residential properties include Villas, Apartments, Luxury Condominiums, Bungalows, or plots of land which one plans to develop later. Generally, a person buys residential property only once or twice in their lifetime. Hence one should take their time researching about the property and do so with a clear picture of their current and future requirements in their minds.

Some requirements of residential property are:

  • It should be in a residential area. Buying a residential property in a commercial area makes little sense as one would be constantly disturbed by noises of vehicles coming and departing, of factory activity, and other commercial activities. From a security point of view too, a commercial area has a large floating population which is difficult to monitor.
  • It should be free from all claims and liens. Buying a property without doing due diligence is asking for trouble. At any point someone may stake a claim or raise objections which may take years to settle later and cost a fortune in legal fees.
  • It should be a quality construction. If buying built up property it is essential to check the builders previous projects and have an independent inspection of the property from professionals to assess quake resistance and take ample measures to prevent water seepage from cracks and joints.
  • It should be close to amenities. A recent research has found that most of the house buyers are young couples as their parents already have a house of their own. Independent nuclear families who plan to have children in the future and a big thing to plan for in India is the school where the children will go to. In fact people give more weightage to having a good school nearby than to markets, religious places, and even hospitals.
  • Other things to look for are the price of the property, law and order condition of the area, water and electricity supply to the property, & distance from work among others.

So we see that the two different types of properties cater to different people with their own needs. While the commercial property is bought with an aim to invest & perhaps either rent or sell later, a residential property is bought primarily for self. In both cases it is important to identify the needs or the reason for buying the property, doing due diligence, partnering with the right developer who is honest, has the expertise, and understanding of the local market to get you the best possible deal.

Why Gurgaon Has a Good Scope for Residential Projects in 2016

Some of the best residential projects are happening in the city of Gurgaon in the next 12 months. As the real estate market picks back up and the Indian economy continues to recover, this is one of the premier regions to find the best deals and most beautiful properties on the market. Here are a few reasons by Gurgaon should be your real estate destination in 2016.

1. A Wide Range of Options

One of the best aspects of Gurgaon real estate is the fact that there are many different types of homes available in varying townships. If you’re looking to spend a lot of money for luxury, you’ll be able find such an environment as easily as you can affordable housing. According to the Real Estate Times, the two types of buyers that have emerged in Gurgaon recently are those looking for residential property versus specifically luxury properties. Well-known real estate developer Unitech has recently put down new residential projects in Gurgaon that features luxury amenities. Not only do these types of townships boast the usual services, such as club houses, open green spaces, and excellent access to major roadways, but there’s another level of luxury now offered.

The Ivy Terraces, for example, are a group of properties situated within Wildflower Country and boast access to self-contained services such as schools, nursing homes, shopping areas, banks, and taxi stands. Luxury housing these days is an up and coming commodity, and if you’re looking for a wide array of options from which to choose, look no further than the townships and new projects in Gurgaon.

2. View from the Top

Don’t forget that although you may find a gorgeous flat to live in, you don’t want to forego natural beauty either. According to India Homes, one of the strongest reasons why Gurgaon projects are a good bet for investment is the fact that many apartments offer attractive views of the bucolic landscapes that surround the Millennium City. Properties are located within a more open setting than a city such as clogged and sometime claustrophobic nearby Delhi. Although larger cities and their surrounding suburbs are known for being major business capitals, Gurgaon has the best of both worlds. You can go to work in the Millennium City, or commute to a job in a larger city nearby, but then go home to both a beautiful, luxurious township filled with greenery. This is helpful in leading a life that’s balanced between personal enjoyment and peace, and hard work in your professional life.

3. The Economic Forecast Is Sunny

Gone are the dark days of the recession that were full of doubts and insecurities about the future as the national economy continues to improve. In fact, real estate experts reported to Business Today at the end of last year that it’s time to start investing again, especially due to the fact that prices in certain areas, including Gurgaon, have lowered due to various market factors. If you’re looking to get in on the ground floor to buy some of the best residential projects for 2016, Gurgaon is one of the safest areas in which to invest. Whether you’re seeking luxury or simply a decent home for an affordable price, the outlook in terms of investments and return are looking increasingly better as time goes on. Given that the current national government is also especially interested in expanding and fostering business and economic growth, there’s never been a better time to get back on the real estate bandwagon.

4. Developments Slated for 2016

The Hindustan Times reports that, due to Gurgaon’s rapid growth in spheres ranging from industry, business, and urbanization, it has the potential to become a forerunner in cities that are capable of self-financing. It’s a city on the rise, and the continuous growth of the corporate sector and companies setting down roots has ensured a steady flow of jobs, structure, and has served as a draw for many different types of property buyers. This includes everyone from expats to middle class professionals looking for a good property investment that will retain its value. Next year is shaping up to be a good year for many sectors, including the real estate market. Gurgaon itself is also continuing to meet many expectations of its residents, and growth hasn’t slowed down so far in 2015.

The year 2016 is slated to be an exciting time for the real estate market in India and new residential projects in Gurgaon, with new interest generated in emerging properties and reputable developers continuing progress in prime areas. The more buyers who are interested in these homes, the more demand will meet supply. Although the entire country experienced serious economic setbacks, as did the rest of the world in the past few years, recovery will continue into 2016. Act now to get in on some of the best deals in the real estate world, especially in fast growing locations like the Millennium City, and reap the rewards in years to come.