What’s Keeping You From Getting Started In Real Estate Investing

It’s not uncommon to see TV commercials starred with a real estate guy offering his winning “How-To” packages in real estate investing. If it is “that” easy to make money in real estate, then everybody must have jump on the wagon and start investing. But why do people still remain cautious about investing in real estate?

That’s a fair question and the answer is rather simple. Like you, those people are afraid.

People are afraid of making tremendous amount of money; that’s ridiculous you might say. However, the thought of added obligation and the thought of making blunder is what people are afraid of. You know that choosing a house to live is already stressful enough; you’re thinking how much more if you’ll buy one with the prospect of reselling it.

But you’ll be glad to know that buying a house for investment is far remove from buying your own dream home. You can leave behind your prejudices and your preferences when you buy a home for resale; you ought to if you are to think like a businessman. This frame of mind makes buying a real estate for profit easier than scouting for your own dream house.

Debt is one of the primary hindrances to getting started in real estate investing. The thing about debt is that it will make you do things that you don’t want to do just to keep debt from taking over your life. Most people wake up every morning and go to jobs they don’t like just so they can pay their debts. Get rid of as many financial obligations as you reasonably can so you can be free to pursue real estate investing as a source of income.

Lack of direction will also keep you from investing in real estate. Real estate is a large industry. There are a lot of different tactics and strategies for investing in real estate. So many that it can be overwhelming trying to figure out how you can start.

There is an easy solution to this dilemma, however, and that’s through learning as much as you can about the business. You can ask help from seasoned investors mentoring new comers like you and you can read information from the Internet or library. After you get this head-start, starting in real estate investment should be easier.

Another obstacle you can encounter when you’re trying to make it in real estate investing is the people that are only out to milk your money. They are those that act like your angel ready to help you achieve your goals but hide an agenda that could hurt your business: they are the scammers. The best strategy is to start asking help from your most trusted friends and meet people along the way through interaction and referrals.

At the end of the day, the fact remains that there is no single strategy you can implement to be successful in real estate investing – it’s solely the investors discretion which path to follow. All a rookie real estate investor has to do is to identify the hindrance that’s stopping him from investing in his first acquisition. Once that has been found out, you can start eliminating this hindrance first so that you can start your lucrative income-earner soon.

Investment Prospects In Bangladesh Real Estate

Investment in real estate can be very profitable. The real estate sector is expanding every day and reaching new heights. Investments in real estate can fetch you huge profit says Harry Coker.

The state of Georgia boasts of a highly developed textile industry, aircraft, groceries and chemical industries says Harry Coker. Coal is found in abundance in the state of Georgia which has boosted power generation resulting in more than adequate supply of electricity in state. These factors has triggered the demand for houses and mortgage in the cities. A surge in the economy and availability of well paid jobs has pushed up the per capita incomes and affordability of the services of mortgage. In the last three years there has been a 10% increase in the GDP of the state of Georgia. This explains the growing interest of the investors and business firms in the mortgage sector.

The Georgia real estate provides you with smart investment options. The affordable solutions provided by the real estate market of Georgia enables potential buyers to enter and exit the market with great ease. Are you planning for a long vacation? Georgia perhaps is the ideal place you are looking for. The exotic locales of Georgia make it one among the five best places all over the world says Harry Coker. The booming real estate industry of Georgia promises you high returns on your investments.

Experts believe that this trend is to continue for many years to come. The reason for this says Harry Coker is the rapid industrialization of the state followed by an exodus of people into the state seeking lucrative employment opportunities available. This has resulted in a massive demand for residential and commercial properties here. The economy of the state of Georgia is growing at an accelerated pace giving boost to the real estate industry which is now growing in leaps and bounds says Harry Coker.

You can buy a beautiful home amidst beautiful forested mountains or on the beach front. You can have a relaxing holiday here away from the rush and congestion of the bustling city life. Harry Coker says that you can choose a fully furnished house depending on your budget. The serenity of the Blue Ridge Mountains and sylvan surroundings provide the required ambience and state of mind to relax and enjoy a stress free living. The real estates can be of log make, made out of massive logs having big porches.

You can choose from a wide range of properties and fixtures and in due course get the advantage of high returns on investment. If you prefer beach front, savannah is probably the best place for living a serene, peaceful and comfortable life says Harry Coker. Lake Chatuge is another beautiful place where you can get creek and river front, homes and stud farms.

According to Harry Coker, with a favourable real estate investment climate and the economy of the state gathering momentum after the lull Georgia is beckoning prospective investors to get rich quick through the multiple avenues open for investment in the real estate market.

The flourishing industry of Georgia attracts people from different corners of the world to be in the city to make their living. This has lead to a mushrooming of tall apartment buildings and individual bungalows says Harry Coker. The dwellings are built near the industries to avoid long commuting by the workers. Well developed transport and communication infrastructure, development of schools, universities and other educational institutions and a booming tourism industry makes Georgia one of the most sought after states in the United States for real estate investment.

Why You Don’t Need a Real Estate License to Wholesale Real Estate

Many individuals interested in wholesaling real estate often wonder if they need a real estate license in order to get started. The answer is a big, resounding “NO.” Realtors and Real Estate agents operate differently from wholesalers. As a Realtor or Real Estate Agent, your services are contracted by a buyer or seller. Realtors have no “equitable interest” in the property. They are simply there to assist the buying or selling process. By providing these services, Realtors and Real Estate Agents are generally entitled to a commission ranging from 1 to 6 percent of the closing price of the transaction.

In comparison, a real estate wholesaler is not hired for their services. The wholesaler actually has a real “equitable interest” in the property, as they have placed the property under contract as a principal in the transaction. The wholesaler is not required to be a licensed real estate agent or realtor, as they are acting in their own interest as the contractual purchaser of the property. Since real estate wholesalers have an “equitable” interest in the property, they are able to negotiate deeply discounted deals with sellers and reap the profits of these transactions selling their interest to cash buyers. In contrast, Realtors and agents are only entitled to a commission that is often split among other co-brokers, realtors and real estate agents.

In addition to great profit potential, real estate wholesalers can make money with little to no risk involved. Realtors are regulated by their local real estate commissions and have a wide variety of rules and regulations that they must follow in order to conduct business. There are also numerous start-up costs and recurring fees that are associated with being a Realtor or Real Estate Agent, that are in addition to any marketing costs needed to generate new business. Wholesalers do not need to spend large sums of cash in order to generate new business, allowing successful wholesalers to realize extraordinary returns in as little as a few months.

There are limited upward mobility options for most Realtors and Real Estate Agents and it is not uncommon for successful Realtors and Agents to make the transition into becoming an active real estate investor. In contrast, a person that starts out as a real estate wholesaler can continue to grow his or her career by renovating and leasing properties, or by investing in other DMV Real Estate asset types such as apartment complexes or office buildings. The upward mobility for a real estate wholesaler is truly limitless, and offers much more flexibility then the typical residential real estate agent position.

Unlike most Realtors and Agents must be sponsored by a real estate broker, Real Estate Mentor Baltimore MD can work alone or they can partner to build a successful real estate wholesaling business. All that is needed in order to create a successful wholesaling business are great interpersonal, organizational, and marketing skills. A successful real estate wholesaling business can be accomplished by any individual willing to put forth the time and effort to make their business work. If you are looking for someone to help you gain the proper skills to become a successful real estate wholesaler and teach you the ins and outs of the business you should apply for a mentorship/coaching program.

Real Estate Application Development – Hire an Expert Real Estate Developer

As we all know that real estate is the property selling business such as building, houses, lands and more that has huge demand for perspectives. These days, various businesses and organizations are looking to get real estate applications that offer huge details of various real estate properties of particular real estate company and agent. Using this application, one can easily look for the property of any state, city, area that he/she is looking for.

This application offers a good searching facility to its users to search perfect and best places that they have in their mind. It can also show the property on map so that you will get complete information that where the property exists. However, users of the real estate application can see the pictures, videos of the property and can add selected property in their wish list. On the web, there are lots of companies that offer a range of Real Estate application development services that mainly aim to offer the best solutions to its customers.

The company has an expert and dedicated team of web application developers, who develop user-friendly customer oriented applications for its clients that works globally. With real estate application, one can get huge help in the user review options and can calculate the profitability of a future project. Moreover, it is one such system that can decide the value of a commercial property and estimate likely development. Apart from this, such types of applications are also used to examine the profitability for real estate development dealing between various builders and developers.

Before, real estate industry was not in demand, but today, the demand for real estate is increasing constantly. This has resulted in real estate development application that offers every aspect of real estate development. Now, real estate applications are extremely helpful in order to make day-to-day tasks easy.

No matter what kind of real estate web application you are looking for, you can hire real estate developer from any reliable real state application development company and get your desired application. If you have decided to get a real estate application that has maximum number of features, you can hire real estate app developer from our company. To get more information about real estate applications and its related technologies.

I am a professional content developer, having years of experience in writing content related to web applications and its related applications. From past several years, I am in the writing industry and like to share latest information and updates of web applications and its development. Here I am sharing information on – Real Estate Application Development – Hire an Expert Real Estate Developer-.

Real Estate Note Seller

The economy of a country is greatly served by real estate note sellers while investing in real estate/land. The aim of a note seller is to convert small payments each month into an amount that is lump sum. If one sells a real-estate-note the user receives immediate cash that can be used for any further investments. Most of the sellers of real estate notes aim at avoiding risks that are related to financing an owner.

There are three types of notes that are dealt by sellers of real-estate notes. They are residential, commercial and notes for vacant lands. Residential are used for houses, townhouses, mobile homes, apartment buildings and condominiums. Commercial notes are used for retail, industries and office. Those for vacant land are used for undeveloped land, developed land, and land that is not chosen as use for specific property like farm land or waste storage.

Sellers of real estate notes usually sell the notes to buyers of real-estate notes who actually purchase an extensive range of notes that are privately held. These include contracts of land sale, promissory notes, trust deed, deed contract and several other instruments of debt. In case the person who sells is capable of selling their home or investment through owner carry back financing or seller financing, then there is an advantage of enjoying payments immediately on that particular note.

Real estate note today has become an important multimillion dollar business. Purchasing and reselling of real-estate-notes are done by several companies and they are engaged to such an extent that they are earning huge profits. The main advantage a seller of real-estate-note is that they are able to sell the properties at such rates that much higher than rates at which the property had been bought. Thus the seller gains huge profits. In case one is a seller of real-estate-note, then it is necessary to compare the rates of different companies who at first purchase and then sell the notes. After making a comparison the best option should be bought.

Real estate notes can be sold quite fast and simply for an investor of real-estate in need of quick cash. There are specifications of terms and conditions of paying back apart from including the amount of loan, rate of interest and the duration of payment. It is possible for an investor to sell all or part of the real-estate-notes at one go. Selling of a part of real-estate note at a time gives an opportunity of higher returns. It can be sold in several ways like blog posting and media advertising.

The market for selling real-estate-note is enormous. There may be different buyers of real-estate-notes like companies, financial institutions and individual investors. Real-estate note can be sold by listing it on some media that can be relied. Greater the reach of real-estate note the better the chances of getting a good deal.

Current Property Rates In Delhi

Delhi has always been the most sought after real estate destinations of India. In recent years, Delhi property market has witnessed an exponential growth rate due to immense improvement in the transport system, expansion of Delhi Metro Rail and the commencement of 2010 Commonwealth Games in the capital. A real estate consultancy had recently rated New Delhi as the 16th most expensive real estate market of the world and one of the costliest retail destinations in India. The demand for real estate development is expected to remain robust across Delhi real estate market due to a huge demand from IT/ITES and other various sectors.

Delhi residential property market has witnessed immense growth because of huge demand for housing from various sectors. South Delhi is one of the most happening housing places in Delhi real estate market and the rental values of residential properties like the flats, villas and duplex houses are extremely at higher end.

Delhi, the national capital of India is one of the hottest destinations for investors. One of the main reasons why Delhi is an investors priority is due to its good connectivity with most of the cities in India other than the best connecting city to all international airports. The property prices in Delhi in the recent times have been quite exorbitant.

Due to all these reasons, the prices of property in Delhi increased exponentially. But with the slowdown, one can see the rates for both the commercial and residential properties coming down.

Delhis Khan Market has also been in the news recently for being one of the costliest retail locales in the world.

Till some time back, in the residential market segment, Delhi has been known to have made the most exorbitant transactions as properties have been sold for millions. This trend which was earlier common in the posh localities of South Delhi is now moving towards earlier less significant places like Dwarka. These days, the rental values of residential properties like the apartments and independent houses are quite high.

Property rates in Delhi:

Apartment rates in Delhi:-
Central Delhi  Rs 7, 500 to Rs 28, 000 per sq ft
East Delhi  Rs 3, 000 to Rs 6, 000 per sq ft
West Delhi  Rs 4, 000 to Rs 10, 000 per sq ft
North Delhi  Rs 5, 000 to Rs 8, 000 per sq ft
South Delhi  Rs 3, 500 to Rs 12, 500 per sq ft

Builder flats rate in Delhi:
Central Delhi  Rs 2, 700 to 18, 000 per sq ft
East Delhi  Rs 4, 000 to Rs 10, 000 per sq ft
West Delhi  Rs 5, 800 to Rs 13, 000 per sq ft
North Delhi  Rs 5, 000 to Rs 14, 000 per sq ft
South Delhi  Rs 4, 000 to Rs 28, 000 per sq ft

Plot rates in Delhi:

Central Delhi  Rs 80, 000 to Rs 5, 00, 000 per sq ft
East Delhi  Rs 25, 000 to Rs 1, 00, 000 per sq ft
West Delhi  Rs 1, 00, 000 to Rs 2, 00, 000 per sq ft
North Delhi  Rs 70, 000 to Rs 2, 50, 000 per sq ft
South Delhi  Rs 75, 000 to Rs 4, 00, 000 per sq ft

Rental Values in Delhi:

Apartment rental values (2 Bedroom  Hall  Kitchen) of Delhi:-
Central Delhi  Rs 8, 000 to Rs 50, 000 per month
East Delhi  Rs 5, 500 to Rs 13, 000 per month
West Delhi  Rs 3, 000 to Rs 10, 000 per month
North Delhi  Rs 5, 000 to Rs 15, 000 per month
South Delhi  Rs 15, 000 to Rs 35, 000 per month

Builder flat rental values in Delhi:-
Central Delhi  Rs 10, 000 to Rs 60, 000 per month
East Delhi  Rs 4, 000 to Rs 40, 000 per month
West Delhi  Rs 10, 000 to Rs 20, 000 per month
North Delhi  Rs 6, 000 to Rs 30, 000 per month
South Delhi  Rs 8, 000 to Rs 1, 50, 000 per month

These are the latest rates and rental values of highly potential realty market of Delhi. Being the national capital, the city boasts of a lucrative real estate market. The city has a lot to offer both to sellers and buyers.

Charlottesville Real Estate Excellent Bargains in Northern Virginia Serious Estate, Spotlight On S

As aspect of rising northern Virginia, the Stafford location provides its residents with access to an incomparable variety of looking possibilities. Antique vendors and artisans have hung their shingles through the spot, as have the significant merchants in Potomac Mills substantial outlet heart. Do not permit the calm, all-natural splendor of the spot fool you–one can uncover anything he or she may well need in this portion of Virginia!

Having said that, Stafford by some means manages to retain an desirable compact city feel. Additional than one,000 acres of parkland and the natural magnificence of the region support to hold the County from experience too crowded or urban. Big outdated plantation attributes and gorgeous equestrian properties support in retaining an nearly rural experience. It’s not an exaggeration to say that the Stafford spot seriously does give people who simply call it property with “the very best of equally worlds.”s.”

Stafford’s ties to the “government economy” have aided it to continue being vibrant even all through challenging financial instances and its future seems vibrant. Amazingly, it is however probable to find superb Stafford households for sale at terrific prices. A modern survey of offerings unveiled anything from lovely cabins tucked away in the wood to big estates overlooking the Potomac. Rates for Stafford homes for sale began at a mere $a hundred and fifty,000!

If you are contemplating a transfer to northern Virginia, work in Washington, DC, or are wanting for a superior-likely site for serious estate investment, you will undoubtedly want to look into the several high quality Stafford properties for sale. There is no position else in Virginia, or the region for that matter, very like Stafford County!

Spotsylvania Properties for Sale: Terrific Specials in Northern Virginia

The tourism board of the Commonwealth of Virginia is fond of reminding us that, “Virginia is for lovers.” One doubts that famed Confederate Basic Stonewall Jackson felt that way when his own troops accidentally shot and mortally wounded him in Spotsylvania County for the duration of the Civil War.

Jackson would be a person of the number of people with anything bad to say about Spotsylvania, though. Today, any individual wanting for a terrific residing in possibility in northern Virginia would be foolish not to take into account some of the terrific Spotsylvania homes for sale. It’s a superb area with some equally spectacular true estate bargains.

Spotsylvania County is component of the Washington Metropolitan area. It rests just south of the metropolis of Fredericksburg and has grow to be an extremely favorite place for individuals who work in DC. In fact, it is an individual of the one hundred fastest increasing counties in the nation.

That is because residents of Spotsylvania can deal with fast and uncomplicated accessibility to urban centers of employment by way of the use of the Virginia Railway Express or Interstate 95 in the morning and can then come dwelling to a quiet, stunning place in the evening.

Spotsylvania wasn’t constantly tranquil and peaceful. For the duration of the Civil War, it was the web page of quite a few battles such as the Battle of Spotsylvania Court Property. Right now, all those historic events imbue the spot with particular importance and make it extremely desirable to all those with an fascination in our nation’s previous.

Mentors in Real Estate Investing

Mentors photoChanges in the real estate market create new niches and investment strategies. One must be able to work well with the changes as this is one area of investing that is constantly changing and updating. If you are new at real estate investing, you should begin working with a mentor and complete some transactions with a partner to reduce your financial and liability risk. A mentor will help you to avoid the common mistakes made by many real estate investors. Begin to educate yourself; do some research on the internet, attend seminars and join a real estate investing association.

What should you look for in a real estate partner or mentor?

The first and most important issue is finding someone who you can work well with; someone who shares some of your interests and goals in succeeding in real estate investing. Your first real estate partnership should be worked with someone who will also be a good mentor; someone with years of active experience and one who is successful. Meet as many real estate investors as you can; talk to them about what they are doing and how it is working for them. Many experienced investors are looking for partners; some are looking for new people to mentor.

Of course you’re looking for a partnership with someone who can be trusted and one who is successful. But there is so much more to real estate investing than just knowing the investors. There are many people you need to know, including investors, realtors, brokers, builders, property managers, home inspectors, title companies, lenders and insurance providers. A successful investor already has these resources in place.

A partner or mentor with years of active experience will know how to structure each individual deal. He should be able to show you previous deals he has worked where he consistently showed profits. He should be able to show his experience using different exit strategies, for example, short term transactions, like wholesaling; and long term transactions, like land contracts and lease purchases. He will be one who knows where we stand in today’s real estate market and how to take advantage of the current market conditions.

What do you expect out of a real estate partnership?

When you find your mentor, a real estate partnership will naturally form. Mentors like to work partnership deals while they show you the ropes; there’s no training like hands-on training. Do you know what you are looking for in a real estate partnership? How much involvement do you want in the financial investment and management responsibilities? Are you looking to be a very active partner or one who stays behind the scenes? Are you interested in commercial or residential real estate? Are you looking to invest in rural, urban or suburban areas? What type of real estate deals are you the most interested in; wholesaling, holding for cash flow, or is there another niche in today’s market, like short sales, that interest you?

Once you worked out the financial and work responsibilities, discuss the profit split and how and when you will be paid. When will you begin to see profit? How much do you invest now? What are the risks?

Liability exposure is something to be considered in the real estate investing world. Will the partnership be set up as a corporation or limited liability company? Will your personal assets be protected should something go wrong? Be sure to address these issues with your partner.

A good mentor will make sure you understand all the important issues before you begin investing. He will explain how the partnership will be set up, what your financial investment will be and your degree of involvement. He will also cover the profit split and explain the financial risks and liability risk of each deal.

To the average person, real estate is a shaky market and one should think twice about investing in property now. The experienced real estate investor sees things in a much more positive light. There is a very high supply of bank-owned real estate, known as REO property, foreclosed homes, pre-foreclosed homes, motivated sellers and much more. The demand for these homes is relatively very low; therefore, real estate values are down and houses can be bought cheap. According to simple economics, the laws of supply and demand, this is a great time to begin investing in real estate.

If you’re very new at the game, you will want to educate yourself and find a good mentor who will work deals with you in a partnership. Join your local real estate investors association, attend workshops and meet other people who have been successful investing in real estate. Get to know the investors in your area who share your interests and find a good person to work your first real estate transactions with.

Economic City To Transform Medak District

Medak District is located in Andhra Pradesh, India. Sangareddy is the district headquarters of Medak. Minister for Major Industries J. Geeta Reddy recently claimed that the Medak district has witnessed multi-fold development. The Export Promotion Industrial Park in Medak District has an area of 300 acres, and the Garment Complex at Gundla Pochampally in Medak District has an area of 170 acres. The Nagarjuna Agricultural Reserach and Development Institute (NARDI) has a 107-acre research farm, situated at Wargal, Medak District, 50 km from Hyderabad on the Rajiv Gandhi Highway.

The proposal of Hyderabad Economic City (HEC) will transform Medak considerably. Ras Al Khaima Authority (RAKIA), and APIIC signed a memorandum of understanding in September last for the development of HEC with a proposed investment of Rs 20,000 crore. The Andhra Pradesh government recently allotted 471 acres of land at Sultanpur village of Medak district for the first phase of Hyderabad Economic city which is being jointly developed by APIIC and RAS-AL-KHAIMAH. RAK is the investment arm of the UAE government which had asked for a total of 2000 acres for the project. The balance land would be allotted in due course according to an APIIC official. It would be an integrated financial hub with infrastructure facilities for financial services operations for banking, insurance and asset management companies. The project would also have an integrated health city that would include facilities for clinical and non-clinical services, hospitals, and medical colleges, research services for clinical trials, drug delivery system, stem cell research and genetic research among other things, according to sources. This is the largest real estate and infrastructure project coming up in Andhra Pradesh and is expected to provide quality employment to thousands of people. RAKIA is a world renowned and much respected investment body that is cash rich. Executing a project of this magnitude is well within their capability. Residential areas adjacent to Sultanpur such as Ayilapur, Kistareddypet and patelgudem will be the most sought after destinations and are likely to appreciate in value considerably.

This project is a boon to Medak district which would assume great significance in terms of the infrastructure being provided and tremendous employment potential. Sultanpur is located abutting the outer ring road and is presently accessible from the Mumbai highway via the Beeramguda crossing which is two Km after BHEL. A three and half Km drive would bring you to Kistareddypet village. The limits of Sultanpur commence barely half a Km to the right of Kistareddypet which has already been witnessing real estate development in the form of gated communities, residential layouts and apartment complexes. Sultanpur is situated at a distance of 16 to 18 Km from important hubs such as hi-tech city area, Microsoft campus, financial district etc. The prestigious IIT Hyderabad campus is also coming up in Medak district around 20 Kms from Sultanpur.

To support the investments around Medak district, the government of Andhra Pradesh proactively took few measures on the Power Generation. Andhra Pradesh Power Generation Corp (APGENCO) has implemented the 2x 7..5 MW Singur hydel project at the head of Singur dam across river Manjira in Medak district. The project, estimated to cost Rs 405.8 Million was financed by the governments of AP and Karnataka as well as funds from power finance Corp (Rs. 160 million). BHEL supplied the turbines and Generators. The first 7.5 MW unit was commissioned in December 1999 while the second unit was commissioned in January 2000.

For Latest Property News in Hyderabad
Visit: http://www.propertydirect.in/newsEvts.faces

Divergent Housing Price Trends In Mumbai And National Capital Region Crisi Research

CRISIL Research expects divergent price trends during the year in Mumbai and NCR (National Capital Region), the two largest residential real estate markets in India. In 2011, prices of houses are likely to decline in Mumbai, whereas prices will rise marginally in NCR. Further, the extent of price decline will vary widely across areas in Mumbai, whereas prices will inch up uniformly across areas in NCR.
CRISIL Research studied the price trend in three major supply pockets in Mumbai and NCR  western suburbs (Goregaon, Malad, Kandivali and Borivali), Thane (Ghodbunder Road), and central suburbs (Dombivli and Kalyan) in Mumbai; and Noida and the outskirts of Ghaziabad and Faridabad in NCR.

City Reality reports offer an in-depth, area-wise analysis of residential, commercial and retail segments covering 400+ areas across 88 micro markets in 10 Indian cities. Read the real estate developer ratings at CRISIL that has developed two specialized products with their real estate research that help housing customers and financial institutions understand the intricacies.

Accounting for more than 50 per cent of total planned supply in each city, these major supply pockets would represent the trend in housing prices in the whole city. Mumbai and NCR would together account for more than half the 1.5 billion sq ft housing supply planned in India’s 10 leading cities up to 2013.

In Mumbai, falling demand, owing to diminished affordability, and rising interest rates will trigger a decline in prices in 2011. Prices of houses soared by 43 per cent in 2010, in the city’s three major supply pockets. Prices thus surpassed their peak values, attained in the first half of 2008, by 26 per cent, adversely affecting housing affordability. CRISIL Research therefore expects prices in Mumbai to decline by 8-10 per cent in 2011.
In NCR, prices will move up marginally because of relatively better affordability. Prices went up only by 6 per cent in 2010 in the capital region’s three major supply pockets. Prices in these areas currently are 15-20 per cent less than their peak values in the second half of 2007, making affordability relatively better in NCR than in Mumbai. CRISIL Research therefore expects average prices in the region to move up marginally by 3-4 per cent in 2011.

“Reduced affordability and a likely increase in interest rates by the Reserve Bank of India will subdue demand and depress housing prices in Mumbai in 2011. In NCR, relatively better affordability will prop prices despite any increase in interest rates,” explains Nagarajan Narasimhan, Director – CRISIL Research.

In Mumbai, the extent of the price decline would vary widely by area. Prices in premium locations like South Mumbai and Central Mumbai, which have an excess supply of houses priced at more than Rs 50 million, would decline sharply by 15-20 per cent over the next 12 months. Prices will decline more moderately, by about 6 per cent, in areas like Vasai and Virar, where affordability would be relatively better. In NCR, with prices increasing marginally across all areas, the trend, again, will be divergent.