The Suites at Godrej Golf Links

A few months ago, Godrej properties launched a township in Greater Noida. Called Golf Links, this 100 acres township, spread around a Golf course, offered luxury Villas in its first phase. The villas, ranging in sizes from 100 to 300 square yards with a starting price of Rs 1.4 crores sold well, in fact a pre-launch buzz ensured that most Villas were booked and allotted on day 1 of the launch.

This did surprise a few people. There’s a perception among real estate buyers that Greater Noida is a long distance away from the centre of Delhi NCR. But what’s perceived as one of the furthest town in the NCR is the nearest if you measure distances in driving time, and not kilometres. It’s also undisputedly, the most beautiful town in the NCR. It actually doesn’t look like everything else in the NCR.

Don’t believe me? Drive down the expressway that takes you to Greater Noida. 30 minutes after you’ve crossed what used to be the DND toll you’ll arrive at a different world. The world in which Godrej is now launching The Suites.

The Suites are exclusive Studios and 2 BHK apartments located close to the Villas launched earlier. These fully-equipped luxury homes offer panoramic views of the Golf course and start at a smartly priced Rs 38 Lakhs. Ranging in sizes from 700 to 1400 square feet there are only 200 odd units up for booking.

Here’s a sneak preview of what’s more at The Suites. A resplendent sky lounge on the 21st floor with an open gym, restaurant and Zen garden amongst other things.

The buzz around The Suites has begun.

But what makes The Suites an attractive buy? I’ve already mentioned the golf course a few times, and also the assurance of buying a Godrej property and the amenities that come along with it. But there’s more.

Golf Links is a low FAR project. This means, and is apparent from the township layout that most properties here will be Villas, and hence very few high-rise towers. The result; uninterrupted views of the Golf course as well as the city.

If you’re an investor, this is where you could park your funds. With so few apartments on offer the possibilities of a good return exist, if and when you decide to exit. If you’re someone who is looking for a weekend getaway or a second home, then this could be that place. For a NCR resident, this would be a second home that’s nearer to home.

The very expensive Jaypee Greens with its magnificent golf course is an immediate neighbour. But as you drive around Greater Noida you’ll notice the city has a distinct identity of its own – Wide, tree-lined roads. Mid-rise apartments. A score or so of private universities and colleges.  Large industries and IT campuses. Spread out residential sectors. Sports arenas. It’s also the takeoff point for the Yamuna expressway.

By December 2017 you will be able to hop onto the Aqua line, the Noida-Greater Noida metro link which rides close to Golf Links. The Suites will then be a short and comfortable ride away from almost anywhere in the NCR.

 

The 2017 Real Estate Story

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In this statistics focused world that we now live in is there room for a story? A story in which what sold or what didn’t during a particular quarter will not influence what will sell or what will not sell in the year ahead? Statistics can be pretty comforting, they help in anchoring predictions giving just enough leeway for a sway or bobbing movement. They help analytics, and also in predicting trends, pretty much ensuring those trends are followed.

And so, predictions get easily predictable. Every quarter, every year gets repeated in episodic fashion. Like TV serials.

But what happens when a storm uproots the anchor?

Things get uncertain. The safe episodic predictability gives way to a stand alone story. Like a movie that’s just out in the theatres. And I’m sure you’ll agree it’s ten times more thrilling to watch a movie rather than a TV serial.

So will real estate really produce a story in 2017 ? A story that’s new and refreshing, uncertain and exciting?

2016 was fairly predictable. It followed 2015. And 2015 followed 2014. Oh, these episodes!

I don’t think there’s a need to summarise what happened. We’ve all watched what happened.

2016 was plodding along as expected until a storm hit us on the evening of Tuesday, November 8th forcing the real estate serial to go off air. Most viewers got busy with their individual financial stories.  Individually different, but thematically common.

Seven weeks later it’s obvious that real estate has taken a sabbatical. So, how soon will it return in 2017, and what story will it bring along?

As I wrote above, the safe episodic predictability will give way to a stand alone story. And yes, it’s going to refreshing and new, uncertain and exciting. But mostly different.

All serials and movies have writers.  So, who’s going to be writing this new, refreshing, uncertain, exciting and different story? No one from Bollywood, I’m sure.

It’s going to us. It’s going to everyone who’s had some contact with real estate. An investor, a buyer, a seller, a developer, a real estate brokerage company, the neighbourhood real estate agent, a one time end-user, a multiple property owner, a commercial space lessee, a land owner and that one big entity who’s finally making an effort to reform this sector. The Government of India.

Too many writers? Not really. Even if they have different ideas on how this real estate story unfolds, they’re probably unanimous on how it should move forward. Now, what are those different ideas?

Most investors had surpluses of money when demonetization happened. Unsure of investing in a sluggish market they preferred to wait and watch. It’s taken them seven weeks to put things back in order. Post January 1st, 2017 they’ll be watching out for opportunities and when they spot one they won’t wait to invest. Compulsive investing?  Maybe so, but what we need to look out for is how these investments will be transacted. I’m sure cash won’t have much of a role in the 2017 real estate story.

What do most real estate brokerage companies and agents want? The same as property owners and property seekers. Easy to execute deals, and timely deliveries. And also to keep interest sustained, a reasonable ROI. By now developers have learnt their lessons. New launches have been sensibly postponed and the imminent arrival of a RERA complaint sector has spurred them into speeding up deliveries.

Stories are made up of plot points. I’ve mentioned a few above. Maybe you’ll discover a few more.

Everyone loves a good growth story. There’s optimism that 2017 will finally see the beginning of the revival of growth in India’s real estate sector. It’s difficult to predict how much of a growth will there actually be. The 2017 real estate story won’t be a blockbuster, but even if it is moderately succesful it’ll bring a lot of cheer to its writers.

 

 

 

 

 

 

 

 

So, Where’s The Real Estate Market Headed ?

It’s been almost three weeks since a word that’s usually been part of an economist’s vocabulary went viral, so much so that it could soon be the most mentioned word of 2016.

Demonetization. A word that’s part of every conversation, and every newspaper’s front page. It’s hit us, and hit us hard. For those who’ve had some sort of association with real estate, it’s hit even harder. And most Indians have some sort of association with real estate.

So, where’s the real estate market headed now?

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I know lots of you have an answer ready. It could be a short, one word, direction specific answer. You’ll probably counter question me next – Does such a question really need a blog post to answer it?

But what if I asked “which real estate market?’  Residential or commercial? Primary or secondary? Metros or small towns? Luxury apartments or affordable houses? Malls or high street?

The fact is that the real estate market is fragmented. And every sector will respond or has responded differently to demonetization.

Is the market headed south? Yes, it is. A correction is apparently going to happen. But how much and when?

How much depends on which sector we’re looking at. The primary residential market has already been in the grip of a slow-moving correction for almost two years. We had seen signs of it bottoming out over the past few months, and it was now time for a revival. There’s talk about Banks being with flush with funds, and a predictable interest rate cut will lead to easy lending, thus creating a demand for the white money driven primary residential sector. But for that to happen we need a new set of brave buyers to step forward and we also need the secondary market to correct more, and correct first.

That isn’t difficult. With cash drying up, most secondary market sellers, most of whom have made a profit (not extraordinary profits) will settle for all white deals, compromising on the cash part. The correction will thus happen by default. However, this will happen in markets like Gurgaon and Noida where high circle rates have always ensured that the cash component in resale deals remains low. A fall in secondary market rates will put pressure on developers to reduce rates till wherever possible.

Metros like Delhi and Mumbai where the cash component has traditionally been high are looking at a long period of uncertainty with buyers and sellers unable to agree on how to transact a deal. It’s important here that the money transiting through Banks doesn’t get withdrawn as cash. It needs to be leveraged by buyers and their lenders to ensure all white deals. Though they’ll be reluctant, sellers will have to compromise on rates. The percentage of compromise could be anything from 15 to 20 points.

But will a steep price fall create a demand? It will, if the fall isn’t too sudden and too soon. However, Indian investors and developers have a lot of inherent stubbornness, so they won’t be yielding or selling out soon. What’s going to make them come to terms with price cuts is the effect that demonetization has had on their primary businesses. If they need to put in funds, they’ll have to raise funds, and so they’ll have to sell out a part of their hoarded collection of real estate assets. And a really good real estate asset is always a good asset for a buyer on the look out.

So contrary to public perception, demonetization has affected every sector, not only real estate. But the public’s perception also is that the effects of demonetization are going to be positive, and if that holds true, then the real estate sector will come out corrected and reformed.

What about the rest of the real estate sector? Will talk about it in my next post.

 

 

 

 

Godrej Arrives In Greater Noida With Golf Links Villas

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Godrej properties, the real estate arm of the century old Godrej group, has arrived in Greater Noida. No, they’re not launching yet another high-rise apartment project, but something that’s closer to the ground.

Villas.

Villa’s that will encircle a golf course. A golf course that’s different from others. Ok, it had to be different from the golf course in its immediate neighbourhood,which is part of a well admired premium destination in the NCR. More about that later.

Talking of the NCR, do you know that what’s perceived as one of the furthest town in the NCR is actually the nearest if you measure distances in driving time, and not kilometres? It’s also undisputedly, the most beautiful town in the NCR. It actually doesn’t look like everything else in the NCR.

Don’t believe me? Drive down the expressway that takes you to Greater Noida. 30 minutes after you’ve paid the DND toll you’ll arrive at a different world. The world that Godrej is now arriving in.

Greater Noida and Noida started out as twins. Noida grew rapidly, fuelled by commercial development in its industrial sectors and residential developments along the Noida- Greater Noida expressway. Greater Noida, however grew slowly, it’s status changed from  being a twin to a younger sibling, however with a distinct identity – Wide, tree-lined roads. Mid rise apartments. A score or so of private universities and colleges.  Large industries and IT campuses. Spread out residential sectors. Sports arenas. It’s also the takeoff point for the Yamuna expressway. The takeoff word also reminds of the proposed Jewar airport, which most likely could soon be a reality. But what’s close to being a reality is the Noida- Greater Noida metro. In an advanced stage of construction, it’s your constant companion as you drive down the expressway.

The metro rides close to the 100 acres Godrej project site which is ringed by developed societies all around. The very expensive Jaypee Greens, with its magnificent golf course is the immediate neighbour I referred to above.

But surprisingly, Godrej Golf Link Villas are rightly priced. A 2400 sq ft villa built on a 100 sq yards plot has an approximate all-inclusive price of Rs 1.3 crores. A bigger 125 sq yards villa is priced close to 1.55 crores. There’s a bigger sized premium luxury villa too, 4400 sq ft built up on 220 sq yards. That Himalayan golf course that runs through these 100 acres is an intriguing attraction along with some sports and recreational facilities on offer. Why is it called Himalayan? Something we’ll find out soon.

But what we know is that Godrej Villas could turn out to be a good long-term investment. If you’re an investor who’s been holding onto to funds for the last couple of years, this could be the project where those funds could be parked. For those weary of living in apartments, an appropriate alternative. Looking for a peaceful, secure place to return home from work? This could be it.

Godrej have timed it right. Noida’s former twin and present day sibling is poised to grow up. Just wondering, from being Greater Noida will it someday become Greater-than-Noida?

Keep Calm And Keep Selling Real Estate

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Do these Keep Calm memes really have a calming effect? Or are they meant to be just smiled at and swiped away?

Can you really keep calm and keep selling real estate in these times?

There are good times, there are bad times and there are ordinary times. If you’re a real estate salesperson or specifically speaking, a real estate broker like me, you’ll guess which of these times are we experiencing right now. These are definitely not good times to be selling real estate, and whether these are bad times or ordinary times is something which will be determined by your attitude. And believe me, it’s your attitude which will help you get through these times, whatever they are.

But first, a little bit about the good times. What exactly were those? When the good times came, we thought they were better times than before. It’s only now, in hindsight that we’ve classified them as good times. What brought them about?

Real estate has periods of volatility. It has surges of  demand driven by the collective belief of investors, veterans or newbies, that the price of every bit of property bought now is bound to rise in the future. When fuelled by a flurry of new developer projects this demand remains unsatiated, bringing in hordes of investors. My first sales in real estate coincided with the beginning of this boom, sometime in 2009. And most of those sales were from walk-ins at sites. Eager and confident investors, in a hurry to ride the boom. From site walk-ins to office meetings to references, the sales kept pouring in. It was also a very competitive time but in spite of that, almost everyone made sales, and more importantly, money.

But there was always that uncertainty about how long the good times will last. We all knew that this is a cyclic sector and things can and will reverse suddenly. In 2014, that’s what finally happened. But no one wanted to believe it. It was like sitting in a cinema theatre, when the lights come on and the usher comes up to you and says “Hey, the show is over, get going”. We look at each other and say “Wasn’t this the interval?”

Now, whether the show is over or it is the interval again depends on your interpretation and most importantly, your attitude. If you walked out of the theatre, you walked out of real estate. If you stayed, you’ve been experiencing the longest interval ever in real estate.

So, how do you get the show running again? How do you keep calm and keep selling real estate?

First of all you should stop thinking about the good times, the sales you made and the money you generated. But don’t forget those times completely. For there’s something else also that we generated. Goodwill.

If after closing your sale you managed to follow-up with good after sales services, you probably made an acquaintance for life. Those acquaintances, those loyal clients of yours have stayed connected with you. Whether they’re stuck with unable-to-exit investments or were lucky to  have cashed out, you’ll notice they’re always eager to chat about the present day market conditions. So keep those conversations going. They might have turned cautious now, but they or someone in their family or circle of friends is a potential buyer. And you’re more likely to close a deal with such a buyer than with someone who’s fishing all over the market. So keep calm and keep talking.

Now real estate has always been a very uncertain trade. Even in the good times after you’d made a sale, you were unsure when your next sale would happen. You had to start from scratch, from zero. But somehow, you’d be off the mark soon. This is now a different innings. Getting off the mark is getting difficult for you’ve been stuck at zero for too long. But keep calm and face up. If you’re hungry for runs, they’ll come, if not in fours and sixes, they’ll come in singles and twos. But the days of being a solitary player are over. To score now, you need to be part of a team, sometimes a batsman, sometimes a runner and sometimes a 12th man. The independent real estate consultant aka broker will soon be a marginal player in this sector. So keep calm and be part of a real estate sales team.

Is being just part of a real estate sales team enough to generate sales? Not necessarily. I’ve found that clients have become increasingly confused about what they’re looking for. We could blame it on the fact that it’s now a buyers market and a client is in no hurry to close a deal. They’ll also embarrass you by possessing more knowledge about the projects you’re driving them around to. Are you in your eagerness to close a sale discussing every available project in your city? Don’t do so. Stay focused on a few reputed, remunerative projects. Stay ahead of your client. Keep calm and keep focused on what you know.

The biggest advantage of being part of a sales team is that you’ll get to sell an exclusive project picked up by your team from a developer.That does away with half the competion. One half still remains, those are your colleagues. They’re friendly competion, you’ll win some, lose some and share some sales. All that’s there to be done is to create a buzz about this exclusive project.

A buzz? Now that’s another post !

At the beginning of this post I mentioned attitude. It’s a metaphorical synonym about keeping calm. So, keep calm and keep selling real estate. The sales will happen.

 

 

 

 

 

 

The Big Real Estate Shakeout Is Coming

Will 2016 be the year when the big real estate shakeout happens?

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Here we are, expecting a turnaround but instead are about to run into something else. Something that might actually be good for the real estate sector. The big shakeout.

There’s been some good news. Residential sales are up across India on a quarter to quarter basis, but unsold inventory keeps increasing. This includes both under construction and ready to live units. So, what’s selling? What’s in demand? Just two things, ready to live properties and office space. We’ll come back to that later.

Real estate price have fallen over the past two years, but the decline has been so slow that it’s just not registering in people’s minds. You can’t blame them, when property prices zoomed, they rose sharply and stayed at a steady level. The reverse didn’t happen, but what happened next was a time correction. Sadly, its taken too long to be noticed.

It’s time investors, veterans or newcomers, sat down and considered what’s going on. It’s also time that developers seriously worry about what’s going to happen next.

Coming next, is the big real estate shakeout.

For property buyers, the current rates are as low as you’ll get. There may be a few distress sales available, but what hasn’t been sold till now will go off the market. A lot of investors have reconciled to the fact that they’re now virtually married off to their investments, and will have to wait for years before they consider parting with them. So, those premium properties won’t be available in the secondary market. A lot of not so attractive properties, in under developed locations or unfinished projects, will be always be available, but who’ll risk buying them? So, those older, veteran investors will be forced to stay away for a long long time. The first shakeout.

Now, if you were a first time investor who bought property a year or two ago, or even recently, you’ll see some limited appreciation coming in over the next two years. That’ll make you confident to buy again, it’s ironical what a small ray of hope can do. You are now the new investor, and once there are a few thousand such people we’ll see the market moving upwards again. The second shakeout.

Among developers, we’ll see a silent consolidation. Companies, or rather brands such as Godrej, Tata and a few more will find small developers eager to join hands or what’s even more likely, hand over project selling and development to them. We’ll see launches at rates which will make us look twice at an advertisement, and when it’s been offered by a reputed large developer we’ll probably want to check out the details. The branding of real estate is about to begin. This is the most important shakeout.

An unfortunate result will be that many small developer projects will get delayed or stalled, adding to the widespread negative perception about this sector.  Among these, projects selling smaller sizes, catering to affordable housing, will find the going slightly easier.

Speculative buying won’t return. We’re going to see the maturing of the real estate market. We’re going to see a steadying of secondary market rates, and a lot more demand for office space, resulting in a lot more construction for office space.

This is shakeout time in Indian real estate. We had it coming.