A recent report by the Chamber of Indian Industries pointed out that globally real estate is and should always be considered as an income-generating asset.  Indeed,  real estate is an attractive investment option,  as it gives regular returns and also provides capital appreciation.  This scenario is presently unfolding in India.

To evaluate real estate as an investment option,  use the following guidelines.

• Check out the various loan options to raise the finances.
• Ensure that there is scope for infrastructure development around the property under consideration.
• Another factor is the location and the proximity to schools,  hospitals,  markets,  public transportation,  etc.
• Check out the rental returns and capital appreciation potential in the area where the property is located.
• Actual property taxes to be paid.
• Finally,  ensure that you are able to maximize the tax benefits to the limit.

The rental rates in India are among the highest in the world as returns on investment on the capital value of the property. Figure I  compares the rental returns for various cities all over the world with the Indian cities.  Investment in commercial property,  where the returns are 10 to 15 per cent,  is a proven option,  while residential property is always in demand for leasing.
Figure I

Since the 9/11 attack in the US, investments in Indian markets have gathered pace.  India has encouraged Non Resident Indians (NRIs) with tax incentives and relaxation of foreign direct investments (FDI) rules.  The sudden change in sentiments is clearly visible in India’s bulging foreign exchange reserves,  which are at a record high of over 60 billion US dollars.  And the RBI has relaxed the rules further for NRIs with respect to repatriation of foreign exchange on real estate investments.  Besides being a safe destination,  India offers 10 to 12 per cent returns, perhaps the highest in the world.  30 per cent of all high major real estate transactions in Mumbai are accounted by NRIs.

Moreover,  with increasing volatility in stock markets and falling interest rates,  many investors have started considering investment in commercial and residential properties.  The bottom-line is that this is the time to go shopping for property;  as the market has started firming up already.  As the organised market develops,  real estate as an investment is one of the better options available today.  As Naresh Malkani,  CEO of Indiaproperties,  says,  “Considering the current property rates and housing loan interest rates,  it is worth investing in real estate in India.”

Published by IndiaProperties.com

Are you planning to buy an apartment, which is comfortable and located in a convenient place, or a house with a green garden? There are many benefits of owning an apartment that will suit your requirements of a dream home.
Choosing the right apartment is very important so that you don’t end up regretting in future. What are the pros and cons of living in an apartment? How do I choose the apartment that is appropriate?
Benefits of living in an apartment
In major cities, many apartment complexes are being constructed by property builders. This is because the demand for apartments is on the rise. Moreover, scarcity of land to construct independent houses and the soaring land prices has made apartments a better choice for the buyer. On the other hand, apartment complexes can house more apartments in a far more less area and are also affordable.
Traffic woes and distance of travel from home to work place is common in major cities like Bangalore, Chennai, etc. Apartments are generally built at planned locations; close to IT parks or business centres. So, by living in an apartment close to where the office is, will reduce commuting time, fatigue and stress. You can also reach home from office and find more time to rest and spend quality time with your family.
A busy urban life makes living in an apartment more practical. Apartment units are usually not too large, so the time and energy needed to clean your home is not too much. You are also free from taking care of parks, sewage-related issues, water supply, etc. as there are people appointed for those tasks. Round-the-clock security is provided in apartment complexes. This is important because most urban people are employed and spend more time at the workplace than at home.
Facilities that are available in apartment complexes are also the main attraction. Facilities such as a fitness center, swimming pool, jogging track, children’s play area and other amenities make life convenient for apartment dwellers.
Choosing Apartments
When you decide to buy an apartment, there are important things that must be considered in addition to the facilities offered. Find out about security systems, parking and other such related issues, which often escape the buyer’s attention.
If the apartment you are planning to buy is still under construction, you should find out about the background of the developer, his credentials and also the necessary paperwork to complete the buying process.
Investing in an apartment always pays off. You tend to stay close to amenities such as colleges, shops and public transport. An apartment can be an excellent choice if you want to rent it out in the future.
Posted By Shruthi

Real estate in Bangalore has recovered from the slump that prevailed during the economic slowdown and is seeing better days. Bangalore real estate activities, which remained low from 2007 till 2009, have now improved. The result is an increase of more than 40% of revenue from registration of properties as compared to the previous year. The sale of apartments/villas and registration of properties has increased since the growth of the economy. However, the sales of apartments in the outskirts of Bangalore have witnessed a downturn. Apartments of small-time builders are unsold despite the demand in residential properties.
From March 2010 onwards, the registration of residential properties in Bangalore, that also include sites and houses, have shown an increase. Despite the decrease in the number of property registrations during 2010 as compared to 2009, the revenue generation was higher. The reason was because of high value transactions that took place.
Though the prices of raw materials have increased over a period of time, the prices of apartments in Bangalore have been stable. Real estate in Bangalore has recovered quickly after setbacks and 68 per cent of the total revenues from property registration have come from Bangalore Urban District. Taking note of this, The Government of Karnataka has concluded to amend the guidance value of properties in Bangalore and also across Karnataka.
North Bangalore is also witnessing a good demand in real estate. People prefer gated communities despite the distance from the city and the high cost. This is mainly because of security reasons and other modern facilities that are provided in these gated communities. Areas like Sarjapur and Koramangala have been the hot favourites in South Bangalore.
Posted By Dinesh

Bangalore has become a hot spot for real estate investment because of the increase in the number of IT, ITES and manufacturing industries that have set up offices in Bangalore.
Bangalore has joined the bandwagon with other Indian cities that are witnessing a growth in real estate. This tremendous growth has pushed the demand for both commercial spaces and residential properties in Bangalore, thus making Bangalore the most sought after destination for real estate investment. The increase in the earning capacity of families and individuals is another reason for the rising demand for apartments in Bangalore.
Whitefield, Sarjapur Road, Bannerghatta Road and Hosur Road in South Bangalore saw a surge in real estate development. Now it is the turn of Hebbal, Yelahanka and the areas towards the Bangalore International Airport, all in North Bangalore, that are playing host to the next phase of growth. In today’s scenario, affordable housing as well as luxury apartments and villas are driving the real estate sector to new heights, which is also the reason for increase in the real estate prices. Globalization of the Indian economy and the Indian Government’s liberalization of FDI policies have further pushed the real estate prices up.
Construction of residential apartments and commercial buildings can be seen sprouting up in many places in Bangalore. One can easily find apartments for sale or for rent in Bangalore at the place of their choice. Such is the growth of real estate in Bangalore that it keeps up with the growing demand.
There are various players in the real estate field playing their part as developers, constructors and builders in Bangalore. Choosing the right real estate developer or builder in buying an apartment or villa is important. The reasons are that with the renowned developer, you can not only expect quality construction but also be sure that the statutory rules and regulations are complied with that is relevant to the industry.
All said and done, buying a residential apartment or commercial property in Bangalore is a good investment decision one can make.
Posted by: Dinesh

Investing in residential property is nothing but a wise decision to establish your dream home. Real estate has gained so much popularity today that it has become a common investment opportunity for many. Though there are sure ways to make profit by investing in real estate, the complications that come along with it are more than compared to investing in stocks and shares. But on the positive side, the returns are much more attractive than other kinds of investment.
Investing in real estate requires a great deal of time and effort researching the market to find the right kind of property. This will enable you to invest in properties that will yield you best possible returns on the investment made. The returns should not be expected immediately as it would take some time for rental earnings to come in and for property values to go up. Regardless of whether you wish to start with a single house or scale up to bigger properties immediately, depends upon your capacity to invest as well as your desire for risk.
Larger properties like 10 apartments are not harder to maintain or control when compared with the smaller property. Transaction for larger properties takes more time to accomplish, simply because you should find your acquisition, renovate it and after which wait for the leases to arrive and for the right time to sell. You must not look at quick transactions when it comes to security of your post retirement future. You must also research the options of investing in other properties like flats, villas, etc.
Posted By Shruthi

The Ministry of Housing and Urban Poverty Alleviation, Government of India has prepared a Model Residential Tenancy Act 2011 that recommends major changes to the tenancy laws. The revision of rent will be applicable to the existing tenancies at the end of 24 months once the Act comes into force.
As the control of rent is subject to the state, it is not mandatory for the state governments to adopt this Act. The central government, however, proposes the Model Act to the state governments. The purpose of the Act is to regulate the tenancy issues and bring in a balance in terms of rights and responsibilities of the tenants and the landlords and also make provision for faster resolving of disputes.
If the tenancy agreement is entered into on or after the commencement of the Act, the agreement between the landlord and the tenant remains valid. If on the other hand, the agreement was made before the Act came into force, then at the end of 24 months from the commencement of the Act, the rent will be as per the agreement entered into by the landlord and the tenant. In this case, the landlord can intimate about the revision of the rent two months before the expiry of 24 months. If an agreement was not entered into between the landlord and the tenant, the landlord has the option to terminate the tenancy.
Agreement
The new Tenancy Act will require every agreement, with respect to renting out a unit, to be in writing and be registered or notarized with a Notary Public. The agreement should be signed by both the landlord and the tenant in the prescribed manner. This should be done within three months from the time the tenancy comes into existence. Schedule I of the Act states the format of the agreement in which it should be written. In the case of existing tenancies where the agreement has not been written, the terms of the tenancy should be recorded as mentioned in Schedule II of the Act and the same should be registered or notarized by a Notary Public within six months from the commencement of the Act.
Termination Period
The Act states that the landlord may give a notice period of three months to the tenant for vacating the rental unit if the landlord requires it for his use or for the purpose of converting the unit for any other use. If the tenant has not paid the rent for two consecutive months or has not adhered to the terms as per the agreement, the landlord may terminate the tenancy by giving 15 days notice period to the tenant. On the other hand, the tenant can terminate the tenancy by giving two months’ notice period if the tenancy is for more than a year and one month’s notice period if it is for less than a year. If it is a fixed period tenancy, the tenancy is terminated at the end of the period mentioned. No prior notice is required to be given to the tenant for vacating.
Posted By Dinesh