The word flat means a converted self-contained unit in an older building. If an existing small house or cottage that has been lifted up to accommodate the creation of a new basement floor housing a separate apartment, then set down again; thus becoming a modest two-story flat.
Margins for developers were high in the 60-70% range for most real estate projects and over 100% in some a couple of years back. Today, they are down to about 30-40% across India. This reduction can be attributed to higher cost of construction, labour, land and other input costs apart from the higher cost of capital. This has forced many developers to look a little closely at various aspects of their processes, something many ignored when the going was good (extremely good). Some smart developers are utilizing economies of scale. Developers are clubbing projects while procuring to get better rates. To save on cost, developers are also now going for direct procurement of big-ticket capital goods such as chillers, diesel generators, glass and even tiles in case of residential projects. As Tripunithura is a place that is easily accessible the demand for the
Flat in Tripunithura is very high.
Real estate sector in India is on upturn. Research estimates that Indian Real Estate market is expected to grow from the current USD 14 billion to a USD 102 billion in the next 10 years. The main growth thrust is coming due to favorable demographics, increasing purchasing power, existence of customer friendly banks and housing finance companies, professionalism in real estate and favorable reforms initiated by the government to attract global investors. The only difference in the two is that in real estate, the lease rentals are fixed, largely predictable over a period of time and a very significant component of overall returns. Investors wanting to earn rentals from residential property can get an average yield of around 6-7 %, and this has been constant for a long time.
Real estate developers cutting cost
Linear Mode
