Ireland Home Prices increases by 14% in 2014

Ireland: According to the Q3, 2014 House Price Report released in the second week by Ireland property portal Daft.ie, the average asking price for a house in Ireland has risen by 14% over the past year, led by an average rise of 25% in Dublin. The average asking price nationwide is now €195,000 ($248,000), compared to €170,000 ($216,000) a year ago, and €380,000 ($483,000) at the peak.

Prices in Dublin have experienced annual rises of between 18% in North County Dublin and 29% in Dublin's city centre. There were also significant double digit increases recorded in all of Dublin's surrounding counties; Louth 14%, Meath 15%, Kildare 19% and Wicklow 20%.

Cork and Galway cities saw prices rise 11% and 13% respectively over the course of a year, while Waterford city centre experienced a 3% climb. Limerick city asking prices continued to fall over the same period by 4%.

The report also surveys the sentiment and expectation of over 1,000 potential home buyers across the country, with respondents in Dublin stating that they expected prices to continue rising over the next twelve months by an average of 12%. This is the largest expected price rise recorded since the survey began in 2011. Outside of Dublin, respondents' expectations have also heated up; they expect prices to rise by an average of 6%.

Daft.ie economist Ronan Lyons commented, "The total number of properties on the market on October 1st was just over 30,000, the lowest figure since March 2007. Across Leinster, and in Dublin in particular, supply shortages remain and this has helped push up values by a third in Dublin in just two years. The concern is that this supply shortage is now feeding into expectations. While price rises driven by shortages can be stopped by increasing supply, tackling price rises driven by expectations is significantly trickier."

Realty Projects Boosting Panama Property Markets

Panama: One hundred days into the term of Panama president Juan Carlos Varela, the real estate market is finding many reasons to applaud the new administration.
 
The new president has made it clear that he is going to continue to spend on key infrastructure projects, which are already starting to benefit real estate owners and investors.

Since Varela's election, the government has moved quickly to approve spending $300 million on two major highway projects that will have a direct impact on Punta Pacifica, the community of luxury residential skyscrapers on the waterfront.
 
One project will expand the highway linking the city to the Tocumen International Airport, which should dramatically improve commute times. The other project will create an elevated viaduct connecting the Corridor Sur highway to the new Cinta Costera, which will create a route allowing drivers to bypass the surface roads of downtown Panama City.
 
President Varela's government has also wasted no time to move forward with the second stage of Panama City's historic metro system, the first in Central America. A tender has been prepared for the construction of the 21-kilometer stretch, which will include 16 stations.
 
The first 13.7-kilometer first phase of the metro opened in the spring, receiving international media attention. A total of four phases are planned, and the new administration has made it clear that completing the system is a top priority.
 

Panama Canal

Panama's economy is expected to grow by 7 percent this year, one of the largest growth rates in the hemisphere. The growth curve is expected to continue with the completion of the Panama Canal expansion more than a year away.

All About REITs and their Relevance

The Securities and Exchange Board of India (SEBI) recently announced guidelines for the creation of real estate investment trusts (REITs) in India.

Just as mutual funds do with equity and debt, REITs will pool money from investors and invest them in income-generating (rental assets) offering them a way to diversify their portfolios by investing in property.

After collecting money, REITs will issue units to investors, which will then be listed on exchange for buying and selling.

This will help establish a new asset class, and being a quasi debt-equity instrument, be attractive for risk-averse investors get the twin benefits of yield as well as capital appreciation, an ICICI Securities report says.

For developers, it would “improve property market transparency, smoothen volatile property cycles, and potentially lower the cost of capital.”

Here are excerpts from the report, which terms the introduction of REITs as a “potential game-changer for real estate in India”.

Key benefits

• Portfolio diversification : For small investors and institutions, REITs provide an opportunity to invest in large scale commercial real estate, which would have otherwise been only possible for HNIs and wealthy individuals.

         A compulsory dividend payout (typically >80% globally and >90% in India) makes the underlying asset              similar to a bond, with a growth component built-in through price appreciation.

• Liquidity and cost of capital benefits: REITs are mandated to provide recurring dividends, and most REIT legislations globally also put a cap on gearing (debt-to-asset) ratios, which reduces the risk perception associated with the asset class.

         Further, tax concessions ensure that dividend payouts are healthy and less impacted by changes in                  central tax laws.

• Improved transparency and less volatile markets: REITs improve transparency in the real estate markets as information is periodically disclosed on average rents, occupancy levels, tenant profile, renewal profile, etc. Availability of such information reduces information asymmetry, which is typically seen in real estate markets and is a key reason for volatility.

 Nature of instrument

Due to the underlying cash flow stability (recurring annual rental income) of the asset, and predictability of dividends (compulsory distribution), REITs are commonly viewed as an yield instrument. They typically tend to have a high correlation to bond yields. Thus, in a softening interest rate environment, cap rates will fall (assuming spreads remain same).

In most cases, REITs trade at a positive spread over bond yields to account for market risks and individual property risks such as local market demand-supply, vacancies, tenancy risk, gearing risk, etc.

A commonly used valuation metric in the commercial asset class is cap rate or capitalization rate. It is defined as net operating income (rent minus expenses) produced by an asset divided by the market value of the asset.

Cap rates used in valuing properties are impacted by bond yields (cost of capital), and the expectation of rent reversion defined as growth or de-growth in rent due to changes in the physical property market.

How i-REITs compare

The key basic Indian REIT structure is broadly in line with REIT legislations in Asia, especially on limits on gearing (currently set at 50 percent), payouts (90 percent), and investment in real estate (80 percent).

Only developed REIT markets (US, Australia, etc.) have significantly higher freedom in gearing requirements (no gearing limits). While investments in foreign assets are not allowed, we believe it is largely irrelevant as long as there is a ready availability of REIT’able domestic assets.

The key aspect that remains to be resolved is tax transparency, which is out of SEBI’s ambit and needs to be addressed by the Union Finance Ministry.

Macros, micros aligning for i-REITs

Consensus expectation is that bond yields in India are expected to decline in the next 12 months, and unlikely to spike unless driven by global market conditions.

 The office sector appears to be a silver lining for real estate developers given its declining vacancy levels and improving rents. Softening yields and increasing exit options (such as CMBS, potential REITs) are likely to positively impact cap rates and improve asset valuations.

Large developers in India such as DLF continue to be burdened with debt in their balance sheet and a weak cash flow generation profile, which is likely to make them closely pursue equity options (including REIT).

As residential markets remain sluggish due to inventory overhang, and weak sales, REIT listings can offer a potentially attractive exit option to such developers to improve their balance sheets. 

                                                                                                                  Source: Moneycontrol.com

Regulation of Real Estate Brokers will bring Transparency

Recently, the Central Govt. indicated plans to regulate the real estate sector by regulating the real estate brokers in order to keep a control and check over the cases of fraud and cheating which are frequently reported. The Govt. plans to regulate brokers by making registration mandatory for real estate agents. The registration shall be done under the purview of proposed Real Estate Regulatory Authority with the aim of protecting the interest of buyers in all kinds of property purchases.

In the month of February 2014, The Uttar Pradesh (UP) government had also decided to enact a new law with the objective of regulating real estatebrokers and agents which will ensure better services to home buyer across the entire state. Haryana was the first state to have made registration ofbrokers mandatory. However, the three year old drive has failed to move beyond papers. The state government's drive to charge a fee from brokersin the city for the license certificate has failed because even those without the certificate are able to do business.

Out of my experience in real estate industry as a professional consultant, I understand that the task of convincing a buyer is a tough one as it involves huge monetary investment. As the transaction value is high, the risk accompanied in the transaction should be reduced to a minimum. Most of the property transaction involves real estate agents or brokers who facilitate the deals. These brokers have become the intermediate medium for different types of property transactions viz. sale, resale, purchase, transfer, lease, auction, etc. The risk associated with the property transaction can be reduced if the credibility of the broker can be ascertained, verified and authenticated. A Quick guide for buyers while selecting real estate brokersis as follows:

·         Check registration of broker and cross check with developer.

·         Do visit the office and analyze their working.

·         Contact only on professional id and mobile no and prefer to be in touch with seniors of the organization.

·         Always prefer paper work with stamp and authorized signatory.

·         Check the office of broker and associated developer

There is a dire need of broker’s registration and a regulator or nodal agency which can register the brokers. Quick suggestions for broker’s registrationand monitoring are as follows:

1.      Connect broker’s registration with their PAN card for unique identification like Service Tax No. which will bring highest level of transparency.

2.      Establish a central body who can offer all information about registeredbrokers like;

·         Transactions done in a financial year,

·         Complaints received

·         Registration no.,

·         Email id and Contact No.

·         Associated developers,

·         Separate window for consumer grievances with status of resolution

·         Number of team members and total tenure of operation,

·         Ranking or rating based on years of operation, complaints, area of operations and endorsement by developers.

Buyers should be able to check authorized brokers with their ratings, office location, official ids on an open platform like dedicated web portal. The monitoring by regulatory body will instill fear in the minds of errant brokersand there will be lesser cases of fraud and cheating by brokers. There should be a defined time frame by which actions investigations will be done on the complaints and the errant brokers can be penalized through different means like cancellation of license, payment of compensation or damages to the customer, etc. There can also be a provision of ratings of brokersbased on certain defined parameters like years of operation, no complaints, area of operations and endorsement by developers.

An important question is who should be the nodal agency responsible forregistering the brokers. Even if a real estate regulator is constituted, who will be managing the operations of registration and issue a license at district level. A district level officer, say a DM or ADM should be entrusted with the task of carrying out the operations for registering the brokers, issue of license and addressing customer complaints. For brokers who operate in more than one city, a single window registration should be possible so that they do not have to approach the nodal agency across multiple cities and regions.

I firmly believe that registration and licensing of real estate dealers will bring accountability and transparency in the industry and make them more responsible for their commitments. Real estate dealers are key partners of developers and buyers. The decision of registration of real estate dealers is a much needed step in the sector to raise overall credibility and protect buyers from property related frauds.

Author 

Mr. Pawan Jasuja

Director 

Finlace Consulting Pvt. Ltd.

Canvass

•      Position – Director, Finlace Consulting Pvt. Ltd.

•      Claim To Fame – In a short span of 2 years, Finlace has become a strong brand in real estate in Delhi-NCR. Finlace has been awarded with a number of real estate awards for establishing itself as one of the foremost companies in real estate consulting. It is the hard work and dedication of all stakeholders that has helped us achieve this. However, this is just the starting and many more milestones have to be achieved.

•      Management Mantra – The core principles or mantra are as follows:

o   Increasing customer satisfaction

o   Transparency

o   Developing Leaders

o   Employee Engagement and satisfaction

• Biggest Challenge – Maintaining sustainable growth in a down market is the biggest challenge. It involves continuous hard work, dedication and perseverance to brave the down market. Luckily, we have been able to achieve this till now.

•  Life Outside Profession – I try to maintain a healthy work-life balance. Work is important but family is equally important. I also take time to meet my friends and pursue my hobbies which rejuvenates me.

The Woods with White by Punam Kalra

Interiors play a major role in our lives. It entails not just furniture but the entire look and feel of one’s home. Each and every piece makes a statement about the person so it is important that furniture should be designed with utmost care keeping individual’s style quotient in mind. And this is exactly what I’M Centre for Applied Arts does. Punam Kalra has come up with her new range of Furniture which includes Dining table, Sofa, décor piece and Fusion Couch.

Dining Table - a large, expansive dining table in a black & white contrast looks great on a wooden flooring. Clean lines, a tapering central base & a stark contrast are the salient features. This table can comfortably seat 8 to 10 persons.

Luxury Sofa – This sofa is designed as per the latest trends of the market using high-grade raw material, the offered sets enhance the beauty of the interiors, owing to their elegant designs, exquisite patterns and attractive colors.

Price : Rs. 40,000 Onwards 

 
Profile- Interior Designer Punam Kalra

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E​ngineer turned designer Ms. Punam Kalra  is the creative director of I'M Centre for Applied Arts, New Delhi. She specializes in providing customized solutions in design & is known for her bespoke furniture & accessories. She has been in the industry since 1994 - almost two decades & has to her credit several prestigious projects - residential, office spaces, commercial etc....

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Punam Kalra - Creative Director, I'm Centre for Applied Arts

Punam Kalra, a renowned engineer turned designer has been in the business since 14 years.  It has been a long time since Kalra opened her first store at Lajpat Nagar. The Life journey for Kalra is a very long one with lots of revelations. Along with expertise and experience, Kalra has also gained a lot of Knowledge. Being brought up in a simple middle class family, she has all her values intact.  

Though being nurtured in a traditional society, Kalra has kept herself upbeat with the contemporary culture. As Kalra entered her adult years, she developed a strong sense of scale, balance and color, along with an appreciation for clean lines and natural materials. Today, she is known for creating outstanding interiors that are both artful and functional.

It was not that Kalra wanted to become a designer from the beginning. It was her destiny that made her so; otherwise she would have become a doctor.

This particular venture is her and her husband’s. In spirit the name, the feel, the design is her response to awakened self. 

Design took on an absolutely new meaning from then on. That day and today, she has traveled a long way, grown in experience & knowledge. She knows, the possibilities of looking at anything & everything are infinite- one just needs to be aware. She is passionate about her work and family that has contributed entirely to enable her to reach where she is today. 

Her take on life is – Do what you want but do it well, Live life as it comes but live it fully. 

“DESIGN DOES NOT STOP AT ANYTHING- IT IS HAPPENING EVERY MOMENT, IN FACT IT IS A WAY OF LIFE.” – Punam Kalra

I​'M Centre​ for Applied Arts - By Punam Kalra, Creative Director

I’m Centre for Applied Arts by Punam Kalra was started in 1994 and started with a Product Design Centre and it was first of its kind in the country.

Punam Kalra, a renowned engineer turned designer has been in the business since 14 years.  It has been a long time since Kalra opened her first store at Lajpat Nagar. 

Punam Kalra always believes in innovation and with this new collection also she proved that “Innovation is the ability to see change as an opportunity”.

She being an engineer who with her sense of aesthetics CREATED straight on the jar and very fond of metals in their pure form like copper, brass, Stainless Steel, silver and gold. Combining these with embalming oxidation and antiquing techniques which she has able to create pieces which are really out of the world. It is far that state of being different that people come to us.

Tremendous Real Estate boom in AP

Hyderabad: Andhra Pradesh is witnessing a real estate boom post bifurcation, with property registrations doubling in the 13 districts during the last few months as compared to the same period last year. Real estate speculation in the hope of capitalizing on the demand for land and frenzy over the construction of the new capital are said to have contributed to the massive spurt in land transactions.

Expectedly, Krishna and Guntur districts topped the list. According to sources, the 13 districts recorded a revenue of Rs 1,469.95 crore through land registrations between June-October 2014 as compared to Rs 624.83 crore during the same period last year. Krishna district, which was initially tipped to account for the major portion of the new capital region, recorded the highest revenue from land registrations post bifurcation. As against 44,281 registrations between June-October last year, the district reported 91,215 transactions worth Rs 236.5 crore this year.

However, when it comes to the number of transactions, Guntur topped the list. The district, which entered the race after the state government identified Tulluru, Mangalagiri, Tadepalli and Guntur mandals as part of the proposed capital region, reported 99,310 land registrations with a revenue of Rs 202.59 crore during the June-October 2014 period.

"Our officials in the districts are complaining that they need more staff to provide quick service to realtors. In Krishna and Guntur districts, there is heavy rush and people are being told to come back two to three days later to get their document registered. We are planning to send more computers, scanners and give orders to appoint more outsourcing personnel to meet the demand," explained senior officials in the AP government.

A similar boom is being reported in Eluru, Tadepalliguem, Bhimavaram, Machilipatnam, Tenali, Bapatla, Narsaraopet, Chilakaluripet and Sattenapalli towns, all of which, like Nuzividu, are far away from the proposed capital region.

Have a Bar? Now Place it Right

The upper and the upper middle class in India are drinking their spirits away ensconced within the classy elegance of customized home bars. With steadily increasing income levels and greater acceptance of social alcohol consumption, the new generations do not mind spending extra money to avail of the best of luxurious concepts like home bars. The concept is picking up across India and being the host-cum-bartender serving delectable cocktails at your own very own ‘homely’ bar is life making a lifestyle statement. Apart from classy-looking bar units, exotic collections of drinks including imported wines and scotch whiskies along with crystal-ware are also moving into homes.

In response to the trend, developers of contemporary homes across Delhi-NCR are starting to include bars in their furnished apartments.

However, what most homeowners with bars at home do not realize is the fact that keeping alcoholic drinks in the house have a direct influence on the lives of the residents. While the purpose of alcoholic beverages is to unwind, relax and kill anxiety, if placed in certain directions in the house they may not have beneficial effects on occupants, so says Vastu Shastra.

“We all know that everything in the universe is a composition of five basic elements. And as per Vastu Shastra, these five elements have their respective positions in different directions. Hence, everything that we keep in the house should be in sync with the five elements as it maintains the balance of energy that each of the directions emanates. For instance, the storage of water should be done at the place designated for water element. Likewise, the functions, shapes, colours, etc., of each object determine what location is best for it in the house. When kept in the wrong direction, objects programme the subconscious mind of the individuals living in that house which creates unwanted situations in their life,” says Vastu Guru Khushdeep Bansal.

“As far as alcoholic beverages are concerned, the South zone is recommended for making a bar. The bar in this area synchronizes with the zonal energies in the home and facilities peace of mind,” said Bansal.

Sharing information about other zones that are considered to be good for a bar, as per Vastu Shastra, Bansal reveals that a bar in the West-North-West zone can help in detoxification of the mind and in releasing blocked emotions and stress. The North-West zone, too, is good for a bar as it yields the desired results expected from meetings over drinks hosted at a bar in this zone.

Incidentally, Bansal has also found out that one can enhance the fun element in sexual intimacy at home by creating a bar in the North-North-West zone of the house.

If you already have a bar at home and it does not fall in any of the zones or directions discussed above, it is likely that you have been facing some ill effects of the bar at home. There are just a handful of locations that are considered to be good for having a bar at home, while most of the others are considered to be within the restricted zones – zones where locating a bar may create an imbalance resulting in the emanation of negative forces. The results can be detrimental in various degrees – a person can end up as an alcoholic, one’s decision-making ability might get severely hampered, and so on. For example, if the bar is created in the East-North-East, then you find comfort and happiness only in drinking - with all other recreational activities appearing to be meaningless.

Likewise, a bar in the East can hamper your social relationships, and if it is in South-East, it may have you lose money, primarily on drinks.

Bansal says, “ All the directions and the causes that are discussed here are not merely based on an analysis of what Vastu Shastra says, but are also the observations from my experience of over 20 years. I have observed how small changes in the house can have a major influence on the lives of its residents. In the case of a bar, I know a lot of people whose lives changed for the better after placing one at the right direction in their homes. I also know a celebrity who had become alcoholic from the day he got a bar in his new apartment; he stopped getting assignments from the Industry, which sent him further into depression. Subsequently, I recommended a change of location for the bar and after the relocation, the actor started seeing the effects of it and also signed up for an assignment with a leading media house.”

“We have become quite used to hearing about lifestyle diseases. We also know that they are consequent to the various changes in an individual’s lifestyle. I am sure these diseases can be prevented to a great extent with a few precautions, and by placing our faith in what was discovered thousands of years ago. I am sure that such ancient wisdom will always remain relevant because it is based on scientific reasoning and logic,” Bansal concludes.

It does not take much effort to place the bar in the right direction – all you need to do is either decode the Vastu Shastra yourself or seek reliable advice. After all, it makes immense sense to invest some time in finding the right direction of placement for an expensive bar, which you might want to get rid off if found negating the positivity of the house.