Residential areas like Sabarmati, Vastrauram, Satellite, Ambavadi and Chandkhera are in great demand. Commercial areas like C.G road, S.G highway Satellite, Vastrapur etc, because of their prime location, boast of high real estate sales. The residential rentals also peaked 2007 but in last six months, due to economic slowdown, they have come down by 25 percent. So, situation now is favorable for tenants as they can bargain more and can ask for discounts looking at the current market scenario. Mr. Bhatia, a real estate consultant, has told his clients not to let go their existing tenants otherwise it would be difficult for them to find new tenants at this point of time.

The rental values for 2- BHK are steady as there are not too many 2-BHK apartments in the city. The rental price for 2 BHK range from Rs.5000-7000 per month where as for a fully furnished two BHK in prime location, the rental price is Rs.7000-17000 per month. In other segments, monthly rentals are declining but rental prices for 2-BHK are still holding firm. The rental prices for 1BHK costs between Rs.6000-8000 per month and 3-BHK rentals costs starts from Rs.12000 and Rs.15000 to Rs.1,00,000 in case of a fully furnished apartment.

Government of Gujarat is laying more emphasis on building privatizing ports, integrated townships, big way, technology parks, and education-based townships, medical and healthcare townships, tourism-related townships, Logistics Park and residential townships. Because of infrastructure development, the overall development of the city has lead into boasting of real estate sales. Also, other factors like metro rail planning in the city and NH-8 highway connecting Delhi to Mumbai passing through Ahmadabad and upgrading the highway under BOT(built ,operate and transfer) has also lead to improved its connectivity with neighboring states thus increasing Ahmadabad property sales.

The upcoming sectors in Ahmadabad real estate are retail and IT/ITES as many MNCs have shifted to the city and thus demand for residential and commercial property is increasing. Many builders and developers are coming up with new projects in the city – Adani group is planning to come up with Mega Township near Nirma University with overall cost of project to be estimated about Rs. 2000 crore plus on SG highway. Heritage group is also planning to come up with all kinds of projects including bungalows, farmhouses and service apartments. Moreover, the prices of property in Ahmadabad are reasonable and quiet affordable as compared to other tier-II cities and the realty market is quite stable and has not suffered much due to the economic slowdown.

Up till now, it seemed as if certain real estate markets would come through the real estate market crash unscathed. Home prices in these areas continued to rise and sales were happening rather quickly. However, there are now signs that even hot markets like the one in Provo, Utah are not immune to the market crash. Homes in these areas that would have been snatched up a short while ago are now sitting on the market with no buyers in sight.

In 2006, home values started decreasing in most markets. But not all markets were cooling. Provo, for example, experienced a 14% hike in home values within a short period of time while other markets were tanking.

Homeowners who lived in these hot market zones realized the full effects of the crash when they tried to sell their homes. Homes that usually sold within a few weeks in the past were sitting for months. It did not take long for sellers to realize that they had to do something drastic to attract buyers. So they started slashing their prices and offering discounts to buyers who would buy their home without an agent. This cut back on the commission fees that sellers had to pay and they could pass this savings to the buyer.

The message that these communities learned is one that we should all pay attention to. No market is immune to the housing bust. Even in markets where prices are continuing to rise, the appreciation is not as robust as it has been in the past. These markets are in the beginning cooling stages. Strict loan restrictions are not doing anything to help sellers sell their properties either.

Surprisingly, the economy in many of these areas has remained strong. This only points to the fact that the housing market and the local economy are not always intertwined.

Another once hot market that appears to be cooling is Seattle. In the Seattle market, prices are not rising as quickly as they once did. Homes are also sitting on the market longer than they used to. Foreclosure rates are on the rise as well.

Experts are still predicting that Seattle should be able to carry on through the crash. Apartment values in the city remain quite strong. Inventory is high, but sales volumes are keeping pace.

Not only has Seattle been able to hold on, the state of Washington as a whole has been able to do relatively well. Why? The state adopted the Growth Management Act which limited the amount of construction projects in the state. Other states were building at a much too rapid rate which has left many new properties empty.

This Act was an extreme plus for Seattle and Washington State. Other states were not so fortunate. New construction projects were left half finished or finished and empty. This resulted in a large number of defaulted construction loans.

Only in Byron Bay

I loved this story of a property in the Byron Hinterland being sold in the $mil and a half region. It seems the potential new owners discussed the purchase with their psychic Geomancer – this is like a Feng Shui expert. They were told that the vendors were not yet ready to leave this property and that they should wait for a more auspicious time. When told this news, the vendors did what any sensible Byron property owner would do – called in their personal shaman for a full psychic cleanse and sage smudging. Negotiations are now proceeding smoothly.

Lo Doc Loans and Tax

For some time now the ATO have been rattling their swords over Lo doc loans. It seems – Shock! Horror! – some people have been exaggerating their declared income when going for a loan while minimizing it when filing with the tax Department. It is understandable, I suppose, that the ATO would wish to tax the Great Australian Tax Payer at the higher figure if given the chance and this, apparently, is what they intend to do.

A recent story from Crikey.com states the commissioner of the ATO Michael D’Ascenzo is saying he knows that people are fibbing on their Lo Doc Loan declarations and declares that if any are caught during an audit then the higher figure will be what is the taxable amount. Of course brokers have been made out to be the baddies in this situation as well but the real story here is this is just another indication of the coming tightening of monetary policy. If Paul Keating was still around he would say this is the “credit squeeze we have to have!”

Put out the “Fire Sales”

In a similar vein, our local member Don Page is behind a move to stop Mortgagee-in-Possession auctions going on as “Fire Sales”. The banks and agents are only interested in getting back the mortgage debt when someone defaults on their loan with no interest in helping the vendor retain as much equity as possible. If the new law is accepted it means that if a house is sold under value, the Mortgagee can be held accountable for the balance and all effort must be made to properly promote and list the property (not just ring up a mate and do a deal!)

Buyer’s Market

Domain.com pointed out that last weekend there were twice as many properties going to auction in Sydney than normal – about 1300 – nearly double the previous average of 590. However clearance rates have sunk to 63%, which is the lowest since August 2005. That is a statistic verifying my intuition that we have quickly turned from what was expected to be a boomer season for agents into a bit of a bear market. The future – no one will predict but I feel the sentiment is equal between those saying we will have a soft 6 – 12 months to the doom and gloomers saying we are in for an extended rough patch.

Resources:

www.byronpropertysearch.com.au

www.realestate.com.au

Ranchi is the capital of a decade old state, Jharkhand. Jharkhand is known worldwide for housing first private Iron and Steel Company of India, Tata Steel. The most industrialized cities of the state include Jamshedpur, Bokaro and Ranchi and so, they attract a lot of migrant population from various regions. This migration has cultivated growth of real estate in Jharkhand.

Ranchi, being the capital city, is witnessing huge growth in its real estate sector with high investments pumping in. Real estate in Ranchi is soaring high with property prices growing almost five times in last five years. The investments by real estate developers and land owners are already bearing fruits with reaping of such great returns. Depending on locality, the rates of property, today, varies from Rs. 1,200- 1,700 per square foot in comparison to Rs. 400-500 per square foot five years ago. The hike in prices is proving expensive for locals but government is taking steps to ensure that they do not face the brunt of these developments.

Jharkhand State Housing Board is planning to develop various residential and commercial space establishments jointly with private builders of the area. The construction of various multi-storied apartments and commercial complexes is in pipeline across the state with Ranchi alone in possession of 19 plots. Since, government plans to develop Ranchi real estate in collaboration with private players like Parsvnath Builders, huge investments in this sector can be foreseen. The most interesting feature of the city is its natural beauty full of surging hills, little streams, calm lakes and brooks that together form a picturesque sight. It has retained its traditional touch in spite of moving towards modernity swiftly with large number of developments taking place. Beautiful waterfalls and rich tribal culture are among its other major attractions.

The tremendous growth in Ranchi has led to a boom in retail sector as well with leading retailers such as Reliance Fresh, Big Bazaar, Spencer, etc. opening up their outlets. Malls, five-star hotels and multiplexes are also under construction indicating the growth rate of hospitality sector. There is also a proposal for industrial expansion on 350 acres of land along with setting up of SEZs, educational institutions and healthcare facilities. The growth in IT industry and tourism activities has high potential for bringing in the economic boost in the city.

The vision set for Ranchi is to make it a ‘model capital city’ and 6Rs (of Redevelopment, Rejuvenation, Rehabilitation, Restoration and Preservation, Restructuring and Reforms) have been set in this line. The population of the city is expected to reach 15 lakhs by next year and the government seems to be all geared up to word towards making Ranchi ‘a symbol of progressive Jharkhand’. It has come up with a City Development Plan (CDP) that identifies land for new sub cities which would require 6400 hectares of land in order to accommodate growth till 2021. In addition to this, strengthening of management systems for urban planning, disaster mitigation, environmental management and management area also needs attention according to CDP. The government is also focusing on improving other amenities related to water supply, sewerage and sanitation, solid waste management, storm water drainage and urban transport. It is also chalking out plans for heritage conservation and tourism development, disaster management, effective urban governance, basic services to the urban poor, sustainability of investments and various other important issues.

With such commercialization of the city and improving living standards, Ranchi is gaining its position as a lucrative investment option. The positive push to both residential and commercial sectors has largely benefited the real estate of Ranchi.

Read more on Quad-City Times

I loved this story of a property in the Byron Hinterland being sold in the $mil and a half region. It seems the potential new owners discussed the purchase with their psychic Geomancer – this is like a Feng Shui expert. They were told that the vendors were not yet ready to leave this property and that they should wait for a more auspicious time. When told this news, the vendors did what any sensible Byron property owner would do – called in their personal shaman for a full psychic cleanse and sage smudging. Negotiations are now proceeding smoothly.

Lo Doc Loans and Tax

For some time now the ATO have been rattling their swords over Lo doc loans. It seems – Shock! Horror! – some people have been exaggerating their declared income when going for a loan while minimizing it when filing with the tax Department. It is understandable, I suppose, that the ATO would wish to tax the Great Australian Tax Payer at the higher figure if given the chance and this, apparently, is what they intend to do.

A recent story from Crikey.com states the commissioner of the ATO Michael D’Ascenzo is saying he knows that people are fibbing on their Lo Doc Loan declarations and declares that if any are caught during an audit then the higher figure will be what is the taxable amount. Of course brokers have been made out to be the baddies in this situation as well but the real story here is this is just another indication of the coming tightening of monetary policy. If Paul Keating was still around he would say this is the “credit squeeze we have to have!”

Put out the “Fire Sales”

In a similar vein, our local member Don Page is behind a move to stop Mortgagee-in-Possession auctions going on as “Fire Sales”. The banks and agents are only interested in getting back the mortgage debt when someone defaults on their loan with no interest in helping the vendor retain as much equity as possible. If the new law is accepted it means that if a house is sold under value, the Mortgagee can be held accountable for the balance and all effort must be made to properly promote and list the property (not just ring up a mate and do a deal!)

Buyer’s Market

Domain.com pointed out that last weekend there were twice as many properties going to auction in Sydney than normal – about 1300 – nearly double the previous average of 590. However clearance rates have sunk to 63%, which is the lowest since August 2005. That is a statistic verifying my intuition that we have quickly turned from what was expected to be a boomer season for agents into a bit of a bear market. The future – no one will predict but I feel the sentiment is equal between those saying we will have a soft 6 – 12 months to the doom and gloomers saying we are in for an extended rough patch.

Resources:

www.byronpropertysearch.com.au

www.realestate.com.au