Real Estate Bill offers some breathing space for builders but it's indeed a buyers' market

he real estate stalemate that has been going on for long will perhaps clear off quickly much to the relief of the industry people as the Union Cabinet has given its green signal to the Real Estate (Regulation and Development) Bill, 2015.

A key stipulation of the Bill, to ensure timely execution of projects, will go a long way in safeguarding the interest of consumers, and in the long run, keep the real estate markets brimming with active demand.

Of late, the market has been dull, lacking velocity in sales and an umpteen number of projects failing to meet deadlines. The developers have been crying about procedural delays as the major factor affecting the project execution timings.

To put it bluntly, the real estate market has been stagnant. The National Capital Region (NCR) alone has a number of stalled projects because of slow demand and certain economic factors. A Knight Frank report states there are more than 6 lakh unsold units in the country, and at the current absorption rate, it will take more than 2 years to clear even if no projects are launched.

In other regions however, sales have been sluggish across the country. According to Surajit Chanda, regional head, Sobha Ltd. (Pune), sales velocity has slowed down in the city. “The market is going through stress. And buyers are taking more time to buy. Primary demand is between 30-70 lakh segment all across the country. In the premium segment, say 1 cr and above, there is certain movement, but not as is expected,” lamented Chanda.

Pinning down one of the causes of the real estate distress, Chanda remarked, “Developers have over leveraged themselves. They picked up more than they can chew.”

If one takes a look at the massive number of delayed projects, it gives a clear picture of why buyers’ confidence is eroded. Not only is their hard earned money been stuck and their economics gone topsy-turvy, but the developer’s promise of timely delivery, a thing which they should swear by, has lost credibility.

This Content was originally posted on: Vanita Akhaury

New York, London Or Hong Kong: Where Is The Hottest Real Estate Investment Right Now?

For those who are considering the real estate investment possibilities around the world, New York City has developed the reputation for being a safe haven particularly for foreign investors. Whether that particular reputation reflects the reality of the market may be debatable, but the bottom line is that many investors have been drawn to New York City for three primary reasons: relative liquidity, Easy accessibility, stable prices.

However, there are other cities around the world that are also developing reputations for being safe havens for real estate investment such as London and Hong Kong, and Singapore. Since the housing crisis of 2008, New York City has recovered quite well and remains one of the few large gateway cities that bring in real estate investments from around the world.

The Emphasis on Luxury Real Estate   One of the more interesting developments since the housing crash in 2008 has been the emphasis on purchasing luxury residential property around the world. While this may seem counterintuitive at first, this type of investment was a reaction to the lack of trust for securities and other financial instruments that went down during this time.

In essence, luxury real estate property is seen as a sound, secure investment that is outside traditional financial investments. So, it is little wonder that luxury apartments in London have essentially doubled in price since 2006 while in New York the price has gone up around 50%. As the gap widens between New York, Hong Kong, London and the rest of the world, the competition has grown considerably tougher.

It certainly helps that financial institutions in the US have made investing in real estate more palatable as a reaction to the crash in 2008. In addition, the Federal Reserve has kept short term interest rates low which has pushed some into real estate investing as well.

This Content was originally posted on: Omri Barzilay

Washington’s Shaw Neighborhood Is Remade for Young Urbanites

WASHINGTON — Over time, neighborhoods rise and fall and then rise again.

Such has been the case with Shaw, an inner-city neighborhood named after an urban renewal district. A host of programs failed to revive the once-thriving area, which was devastated by the 1968 riots that followed the assassination of the Rev. Dr. Martin Luther King Jr.

But decades later, gentrification came to Shaw, and now it has perhaps reached its zenith with the real estate rebranding of a portion as North End Shaw. At least, that is what JBG, a major local developer heavily invested in the area, is calling it, as it markets its newest project, four stylish residential rental and condo buildings with ground-floor retail shops.

The old Shaw was largely low income and African-American. Its U Street was hailed as the Black Broadway, with clubs frequented by the likes of Duke Ellington, Pearl Bailey and other top black performers in segregated Washington.
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But now a whole different scene has emerged in the newly energized corridor. It is increasingly home to white millennials seeking a walkable, urban lifestyle close to two Metro subway stations. It is also home to trendy stores like the eyewear emporium Warby Parker; Chrome Industries, which morphed from a maker of backpacks for bicycle messengers to a seller of clothing “for urban mobility”; and Frank & Oak, a Canadian clothier that started online and now has 12 stores, three in the United States.

That a dozen such brands have chosen to locate here is a result of careful planning and “place making” by JBG, based in Chevy Chase, Md., which assembled public and privately owned parcels five years ago. It has now developed these tracts into a hub of shops and residential buildings, with 708 rental and condo units. They include Atlantic Plumbing, on the former site of a plumbing supply company; the Shay; the Hatton; and 2030 Eighth Street at Atlantic Plumbing, with a penthouse unit priced at nearly $2 million.

At Atlantic Plumbing, JBG has leased ground-floor space at low rents to enterprises like Cherry Blossom, a graphic design firm, and Foundry Gallery, a cooperative art space.

This Content was originally posted on: EUGENE L. MEYER

Apeiron Developer Submits Plan For 549-Foot Tower

The developer of Apeiron at The Jockey Club submitted plans for a tower to the FAA last week.

Apeiron will rise 549 feet above sea level, or 540 feet above ground, if approved by the agency.

The 40-story tower will include 120 serviced residences ranging in size from 1,500 square feet to 4,500 square feet. A 90-room hotel is also included in the tower.

This Content was originally posted on: TNM Staff