How to Maximize Profits in Today's Shaky Real Estate Market

The real estate market is tougher now than it has been in the last 20 years. Buyers are harder to please and sellers don't want to lose money selling a property short of where they bought it. Selling a single property is the short term way of making a commission. Many home buyers will purchase 4 -6 homes in their lifetime. That's 8-12 transactions from that client alone!

What today's agent should focus on is building a client base that will come back to them and recommend them to their friends again and again.

People in general choose to deal with agents or salespeople that they know, like and trust. This is where focus should be concentrated. Once you meet a client or get their name from a referral, you as an agent need to start generating and increasing the "know, like and trust" factor. There are many successful ways to increase how a client, either buyer or seller, perceives you. But they all have to do with creating a personal relationship.

Recently we had a local Realtor send out postcards with her contact information and a recipe for a pasta dish along with a picture of her and the plated pasta. It was a nicely done 4 x 6 color glossy postcard. After reading the recipe it seemed like something to our taste so we bought the ingredients just as stated on the card and made the recipe. The results weren't pretty. The recipe was a disaster.

Now, from a marketing position, that wasn't all bad as we will link her name with bad pasta but it would have been better had the recipe been a great recipe. The results were mixed in this case because she increased the Know part of the equation but decreased the trust variable. So if this is a marketing strategy you adopt please check the recipe out before you put your name beside it.

You should use open houses to build your list of clients/contacts as much as trying to sell the house where you are holding the open house. Follow up sometime in the next week with the people that came to your open house on Sunday whether they were just looking or were sincerely interested in buying a house. Give them a call and if they are not ready to buy or list, see if they may be able to refer you to someone who is. Continuing follow up will eventually lead to more referrals and more sales. But at the same time your follow ups should be in the form of something usable to the potential client. Send out a newsletter or flyer indicating that you've listed or sold a house in their neighborhood along with the price of the property.

Another way is to offer tips for increased curb appeal which will increase the value of the house they are in now. Maybe partner with a local nursery for coupons offering a free plant. This would be good business for you and the nursery. The client comes in for 1 free plant but goes home with several more purchased ones.

How about offering to have 2 rooms of painting done for free when listing a house. Again a great deal for you and the painter. You get the listing and he gets some work. Many times the client now sees how bad the other rooms look compared to the freshly painted ones and gets the painter to do more work which will increase the selling potential of the house.

Another way to say thank you is a dinner coupon for referrals. Local restaurants many times have particularly slow nights during the week and would be happy to offer discounts or maybe even free meals on those nights to help fill their tables.

Once you seal the deal for your client make sure to follow up on how you did as a service provider and ask for a referral. If you aren't getting referrals from clients it's because of one or two one of things. Either you are not serving your customers needs well or your product/service may need some fine tuning.

Another avenue of approach could be creating a presence on the internet and having people come looking for your services if you've established yourself as an expert in either your geographic area or in your niche market. A niche market could be specific help for first time buyers, lake property, retirement property or income property. Creating a presence online and getting people to search you out as an expert is a topic for another paper.

http://ezinearticles.com/?How-to-Maximize-Profits-in-Todays-Shaky-Real-Estate-Market&id=2645408

Jones Lang LaSalle tops in corporate real estate services provider

Jones Lang LaSalle has been recognised as the best overall provider of corporate real estate services by the Watkins 2009 Survey of Corporate Real Estate Service Providers.

Of the 19 providers evaluated by the largest users of commercial real estate services, Jones Lang LaSalle was rated No 1 in every category, including delivery of results, adaptability of services, pricing, reputation and financial strength.

“Real estate is often the third largest cost for many companies. Many are seeking to outsource these functions to reduce costs whilst maintaining similar or higher levels of service delivery. The Watkins survey is a clear indicator of what companies require and value,” said John Forrest, CEO of Jones Lang LaSalle’s Corporate Solutions business in Asia Pacific.

“It is a combination of these things that enable us to maintain our position as a market leader in Asia Pacific. In fact, we are continuing to grow and in the first six months of 2009, we have expanded our portfolio under management by over 30 million sq ft with clients from the banking, technology, industrial and consumer goods industries,” said Forrest.

The survey, conducted every two years by the Watkins Research Group Inc., in a joint project with Flaspöhler Research Group, interviewed 204 corporate real estate (CRE) decision-makers from 182 companies, representing North America’s largest users of CRE services—including 59 Fortune 500 companies, 37 Financial Times Global 500 companies and eight government agencies.

Jones Lang LaSalle Meghraj is the Indian operations of Jones Lang LaSalle (NYSE: JLL), the only real estate money management and services firm named to FORTUNE magazine's "100 Best Companies to Work For" and Forbes magazine's "400 Best Big Companies".

It is the premiere and largest real estate services company in India, with an extensive geographic footprint across ten cities (Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and staff strength of over 3800.

The company provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, consultancy, transactions, project and development services, integrated facility management, property management, capital markets, residential, hotels and retail advisory.

With 2007 global revenue of USD2.7 billion, Jones Lang LaSalle has approximately 180 offices worldwide and operates in more than 700 cities in 60 countries. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.2 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the worlds largest and most diverse in real estate with more than $54 billion of assets under management.

Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 16,000 employees operating in more than 70 offices in 13 countries across the region.

http://www.business-standard.com/india/news/jones-lang-lasalle-tops-in-corporate-real-estate-services-provider/66399/on

Real Estate: Buyers willing to come forward at the right price

“Land monopoly is not only monopoly, but it is by far the greatest of monopolies; it is a perpetual monopoly, and it is the mother of all other
forms of monopoly.”

Said former British Prime Minister Winston Churchill and that’s the sense of power felt by those who hold land. The thinking of Indian developers is no different. They went on a drive to amass huge land banks, only to see themselves in deep trouble when the real estate market slowed. Nonetheless, amidst all the gloom and doom surrounding the sector, they have managed to survive the slowdown. With the successful closure of a number of qualified institutional placements (QIPs), a number of builders have managed to tide over cash flow problems for now. This has turned the tide in favour of the industry.

Besides, the developers have resorted to measures such as selling non-core assets, cutting down prices, reducing apartment sizes, borrowing from banks, and pledging of shares to keep themselves afloat. Thus it seems that there is light at the end of the tunnel for sector, though the length of the tunnel is still not known.

Industry scenario

With a stable government in place, the sector may be in for some pleasant surprises.

Affordable housing and rural housing are part of the agenda of the new government at the Centre. Leading builders were the first ones to react to this need and launch new projects with prices ranging from Rs 4 lakh (depending on location) to Rs 50 lakh (though not really affordable).

Both listed as well as unlisted developers such as Lodha Developers , HDIL, Unitech, Puravankara, Omaxe, BPTP and DLF made a foray into affordable and midsegment housing. A recent entrant in the affordable housing segment is the house of Tatas, under the brand name ‘Shubh Griha’. Though it is difficult to arrive at a price point for defining affordability , some of these projects have seen good response from the customers. In fact now a number of private equity players are also keen on the affordable housing segment. HDFC Realty, Red Fort Capital and Kotak PE are believed to be eyeing this segment.

The story so far

In the last two months the BSE Realty Index has gained 20% (since 9th March) whereas the benchmark index, Sensex rose by 54%. This surge in the equity market coupled with increased buyer interest has had a positive impact on stock prices of realty companies. The beaten down stocks are again finding favour with investors. Though one still cannot directly say that this will ensure increased sale of units, it reflects the change in investor sentiment about the sector.

However, it is only the developers with proven track record and construction capabilities that are benefiting from this change in sentiment.

Sales offices and under construction project sites that bore a deserted look till a few months back are now buzzing with walk-in customers. With a manifold increase in the number of inquiries, it just shows that buyers are willing to come forward and buy as long as the prices are reasonable. This will help them to avoid over leveraged position.

Since it still continues to be a buyers market, customers are not willing to pay a premium for any under construction property. In fact it is for this reason that ready flats are finding more takers. Builders are thus offering easy payment schemes to instill confidence in the minds of people. For e.g., in some projects buyer needs to pay only 20% of the value of the flat and the rest 80% (through EMI) would start only after the property is delivered . Data shows that new launches with reduced prices and smaller size apartments are seeing higher sales now. Bangalore and Hyderabad registered a low absorption rate (ratio of units sold to units launched) compared with Mumbai, Chennai and Gurgaon because the number of new launches in the affordable segment was low in these regions.

Financials

With over 195 million sq. ft of ready and under-construction property in the market and hardly any takers, residential sales are the saving grace. DLF’s quarterly revenue for March’ 09 reported a whopping 73% decline. Following closely were HDIL and Puravankara, with a 63% and 56% drop in revenues. Similar was the trend in net profit margins (NPM). Puravankara’s NPM halved to 21.5% compared to the same quarter in the previous year. For DLF and HDIL it was much worse. Almost three-fourth of their profits have been wiped out. Higher sales of low margin mid housing segment were a cause of this drop in margins.

Had it nor been for Reserve Bank of India directing banks and financial institutions to help them restructure their loans, most of them would have defaulted on their loan payments. Cumulatively, DLF, Unitech, HDIL and xx have managed to restructure close to Rs 4,100 crore of debt through commercial banks and mutual funds. DLF has repaid 1,700 crore of debt while Unitech managed to reduce its debt Rs 2,000 crore. This has helped them to not only reduce their debt equity ratio but also interest outflow.

Going ahead

Given the current scenario, the response to various newly launched projects shows that ‘right price’ has played a key role in their success. Realty prices have been rising since the last three-four years. Places like NCR, Bangalore and Mumbai where prices had gone up by 300%, have seen the maximum correction. Still there are few locations where builders have been maintaining absurd prices because of their improved liquidity position. But this would only lead to piling up of inventory, which will further tighten the cash flow position of the builders. With the approaching rainy season, sales would anyway be subdued. If the industry has to come out of this slowdown, dussehra would be an important time.

In the six metros, 53 per cent of the 930-million sq.ft (as per Liases Foras) available realty stock is unsold; putting downward pressure on prices and lease rentals. We could thus expect a further 10-15 % correction in prices till Diwali, depending on the location.

However, it is advisable for buyers to select the property of their choice and budget so that they do not waste useful time in doing the groundwork during the festive season.
http://economictimes.indiatimes.com/Features/Investors-Guide/Property-market-on-a-high-rise/articleshow/4601877.cms

Original Booking in Mantri Celestia Hyderabad By Affinity Solutions

Hyderabad Property/Hyderabad Apartments/ Hyderabad Flats/Mantri Celestia Hyderabad/Hyderabad Real Estate Property Dealer/Hyderabad Properties/ Hyderabad Bangalore/ Hyderabad Apartment/ House for Sale Hyderabad/ Mantri Celestia Gachibawli Hyderabad

Mantri Celestia Gachibowli Hyderabad
Mantri Celestia is for those who are looking for homes that combine elegance with functionality, superior design with quality construction, and luxury with economy. Celeste by Mantri is spread over 11.5 Acres of land in Gachibowli, 7.5 acres for residential and 3.5 acres for commercial. Spread over7 towers, G+23 floors, premium locality of Gachibowli Hyderabad.

Location of Centrum Park Gurgaon
Mantri Celestia Wipro Junction, Gachibowli Hyderabad.

Common Amenities of Centrum Park Gurgaon
Gymnasium, Health club,Steam Room, Sauna, Table Tennis Room, Indoor games, Aerobics hall, Super market, Ladies & gents Parlour, T V Room, Squash court, Space for Crèche, Multi purpose hall/Party hall, Billiards room, Outdoor Amenities, Swimming Pool, Landscaped Garden, Children play area, Senior citizen’s area, Jogging / Walking Trail, Tennis courts, Basket Ball post, Outdoor Exercise Area.

Type Size & Price
Types-------Size(sq.ft)----Price INR(sq.ft)
3 BHK----------1198-----------2590
2 BHK----------960------------2725
2 BHK----------965------------2725
2 BHK----------970------------2690
2 BHK----------980------------2725
3 BHK----------1198-----------2725

About Mantri Developer
The speed, at which Mantri Group have journeyed in this industry and the incredible volume that they have built, is a sign of the deep passion and expertise that they have in Real Estate. With a track record of delivering 1.4 homes everyday since inception on time. Mantri Group has further diversified into Retail, Hotels, IT and premium housing townships all over South India. Industry leaders state this is the fastest growth achieved by any developer in the field of Real Estate in India.

About Affinity Solutions (P) Ltd
Affinity Consultant is a Real Estate Consultant in India operating since last 10 years. A.K. Jain heads a team of dedicated professionals with more than 10 yrs of experience in real estate services handling the entire project in India. Affinity Solutions (P) Ltd. is a paramount name among Indian real estate consultants and service providers with all leading brands likes DLF, Parsvnath, Ansal, Omaxe, TDI, Unitech, Emaar MGF etc.

For More Information Contact
AFFINITY SOLUTIONS (P) LTD
Mr. Dependra Nath - 9603649027
Mr. A.K.Jain – 9811159064
16469150050 (US), 442030516831 (UK)
http://www.affinityconsultant.com
affinitycredit@yahoo.co.in

Retail real estate struggles to survive

Pune retailers are unable to expand due to liquidity crunch and subdued demand, hampering development of malls

Retail real estate in Pune, which was hitherto a hot property, has started losing its fizz. Cash crunch, falling growth numbers and subdued demand are taking their toll on thesectors. It’s the ripple effect at its worst. Retailers are not able to expand their presence, which, in turn affects mall development.
“Owing to volatile market conditions, insecurity of jobs, there has been a decrease in the number of footfalls in the malls in Pune. The footfalls also vary from location to location and depend on the new schemes introduced from time to time to attract customers,” Kishen Milaney, property consultant, Kaypee Shelters, told FC Estate. Also, during the present uncertain times, even those who do visit the malls do not necessarily end up buying things, he added.
The city, according to him has about 60 business locations in the heart of the city, as well as in the newly developed residential zones and IT parks.
“About 20 to 30 malls of various sizes are in the making. It is not clear how many will be completed as some are looking for better brands. Some may even change hands,” Milaney said.
Big Bazaar, which has six stores of various sizes spread across Pune, says luxury items like furniture and electronic goods had taken a hit.
“Today, there are many malls being planned — however, due to the economic slowdown, we expect many of these to see only partial occupancy until things improve,” said Anand Dutta, head (retail) Pune, Jones Lang LaSalle Meghraj.
However, the real estate developers are pinning their hopes on the IT sector and believe that the fact that Pune, as a traditional automobile manufacturing hub, will continue to provide impetus to the city's retail realty sector.
Over the past 3-4 years, Pune has seen considerable growth in the IT sector, placing it close behind Bangalore and on par with Hyderabad. In the same period, the retail sector has ramped up to introduce a number of malls in response to the increased spending power and demographic changes.
There are about six under-construction malls, each measuring over 5 lakh sq ft. At present, Pune's retail-scape accounts for approximately 5 million sq ft.
There are about four-five townships of over 100 acres each planned in the city, and retail would be an inherent component of each of these. The scheduled townships will open up new frontiers, as will the proposed international airport.
Manoj Singh, store manager of Big Bazaar in Fatimanagar, is upbeat. “The footfalls have increased by 20 to 25 per cent in March 2009 compared with March last year. For example, on March 27, Maharashtra’s New Year’s day, we had a full house and did good business. On weekends and the first week of every month, we still attract good clientele,” he said.
http://www.mydigitalfc.com/real-estate/retail-real-estate-struggles-survive-293

Foreign investors in real estate locked for 3 years

NEW DELHI: Foreign investors
in Indian real estate cannot sell their stakes to another foreign investor before three years,With this, FIPB has overruled a provision in FDI policy that exempts foreign players from the rule in cases where fund
transfer is from one non-resident to another. Till now, this three-year lock-in was applicable only on foreign investment in real estate and not on investors.

The FIPB view is contrary to the stand taken by the department of industrial policy and promotion (Dipp), the nodal agency that formulates FDI rules in the country. Dipp’s view is that a foreign investor can repatriate funds if it offloads its stake to another foreign investor as the actual investment in a project would remain intact and only its ownership would change.

"Though Press Note 2 of 2005 has an enabling clause to permit sale of investment between two non-residents before the end of lock in, it has not been allowed so far,” an official in the commerce & industry ministry said.

The issue came up in the last FIPB meeting, when the board took up private equity fund 2I Capital’s request to sell its investment in Delhi-based real estate firm Uppal Housing to Mauritius-based fund ICP Investments.

The company had sought approval for transferring 1.9 crore shares in the Indian real estate company to the Mauritian company. According to the company’s proposal, the fund transfer involved no repatriation of funds but physical transfer of shares from one investor to another.

Though Dipp had recommended giving permission for sale of 2I Capital’s shares to ICP Investments, FIPB rejected it. Dipp argued the sale of shares was permissible between two non-residents within the lock-in period , but FIPB rejected it.
http://economictimes.indiatimes.com/Markets/Real-Estate/Foreign-investors-in-real-estate-locked-for-3-years
/articleshow/4312054.cms

India Developers Face Risk of Cancellations, Credit Suisse Says

-- DLF Ltd. and other Indian developers are cutting prices on increasing risks that buyers will back out of purchases made at the market’s “peak,” forcing developers to write off earlier profits, Credit Suisse Group said.

DLF, along with Parsvnath Developers Ltd. and Orbit Corp., have more than 20 percent of their revenue booked since 2006 as outstanding, Mumbai-based analyst Anand Agarwal wrote in a report today. The company, India’s largest real-estate company, has lowered prices for a project in Chennai by as much as 14 percent, the report said.

“Wherever possible, customers are looking to walk out of transactions entered at the peak of the real-estate market,” Agarwal wrote. “Many real-estate companies have recognized revenue on percentage completion against future cash inflows on contracted sales. Some of these transactions could be canceled, leading to write-offs.”

The Bombay Stock Exchange Realty Index has dropped 36 percent this year, compared with an 8.6 percent slump on the benchmark Sensitive Index. Home sales in India have tapered as the global financial crisis and slowing economic growth reduced the availability of home loans and hurt spending.

DLF will cut prices in new projects over the next three months to revive a slump in home sales, Vice Chairman Rajiv Singh told reporters on Feb. 2. The developer reduced prices at a project in Bangalore and Hyderabad, according to reports in the Business Standard this month.

Outstanding debts at DLF amount to about 38 percent of its total revenues between the 2006 and 2009 fiscal years, while Parsvnath and Orbit have ratios of 29 percent and 20 percent, respectively, Credit Suisse estimated.

Worst Performer

DLF has dropped 44 percent this year, the worst performer among the 30 companies making up the Sensex. Parsvnath has retreated 26 percent during the same period, while Orbit has lost 32 percent.

A rebound in Indian developers may only take place in six months’ time, when signs emerge that asset prices are halting their slump and as liquidity recovers, Macquarie Group Ltd. said in a report today. The Reserve Bank of India reduced interest rates to an unprecedented low on Jan. 2 and Governor Duvvuri Subbarao said on Feb. 18 there’s “certainly room” to lower rates further.

“This is a tough time for the real-estate sector because of tight liquidity and slowing sales,” Macquarie analysts Unmesh Sharma and Gautam Duggad wrote. “Stocks remain under pressure due to the lack of visible triggers in the near term.”
http://www.bloomberg.com/apps/news?pid=20601091&sid=awM55fELjLxY&refer=india