|
|
January 26, 2008
Located at the southern side of China, Hong Kong comprises of almost 250 islands. With tropical settings Hong Kong is a beautiful destination. The city looks over new horizons with a booming economy and as a developing business centre. It gives you a mix of cultures, the amalgamation of eastern philosophies and western values with markets of China and India close by.
Hong Kong - One Of The Priciest Economies in The World
It has gained popularity not only as educational center or as a tourist heaven but also has gained centre stage as one of the fast developing economies of the world with a business booming greatly. Such reasons attract many foreign and domestic investors from all around the globe to invest in big real estate projects in the country. Not only that, Hong Kong is also one of priciest economies in the world which makes it all the more suitable for investors. Another reason for it to become one of the hottest destinations is because of the fact that due to its novelity it is being developed as a posh and organized place. The exclusive areas of the region are nonetheless the best to make an investment in the real estate. This also gives dealers accessibility to trade and huge profits.
Properties Sell Like Cup Cakes
This has attracted many developers, builders and counselors to establish their business in the city making it easier for anyone to acquire property in the country. Companies like Jones Lang LaSalle which has been functioning in the market since 45 have been taking over the market with their experience. If you look back some years you will find that the property market in Hong Kong has been hot and still properties have been selling like cupcakes or hotdogs. Due to the booming economy people don’t shy away from luxurious apartments which other nations might not afford. There is ample of space making it easy but profitable investment market.
Ask anyone dealing with real estate these days and you will hear the term ‘feng-shui’ or ‘vastu’ (in India). Where technology has advanced so much, to partially support such beliefs it is not a surprise that be it people like us or associations of builders, we all look forward to it.
Build homes complementing the natural surroundings
Feng-shui also known as Geomancy is a branch of classical cosmology belonging to Chinese culture. This branch can be used during construction to build homes complementing the natural surroundings. As per the Chinese beliefs the way one decorates home and places certain elements can significantly make a difference with respect to the materialistic pursuits and spiritual environment of the inmates. Where Feng-shui is a years old practice and can be traced to the very roots of Chinese culture, it has recently emerged as one of the major factors held important for real estate. The practicality of Feng-shui makes it inevitable for builders to follow it.
Achieve a perfect harmony
Feng-shui follows simple rules like placement of furniture, usage of colors, placement of the five elements namely fire, water, earth, wood and metal etc. If it is or it is not a superstition it doesn’t matter much because as far as builders matter, it is indeed one tool that not only gives them an extra advantage but even extra profits. Literally, Feng-shui means wind and water and practically it can be seen as a theory to devise a balance between the yin and yang or the negative and the positive energies. Where it has an immense importance in China and decides on almost anything and everything, the concept has been taking over West with its practical wisdom especially as far as real estate is concerned. The basic considerations builders go through while dealing with Feng-shui too are general questions like-how the surroundings have an effect on the house, what makes one house better then the other or how one can balance the interiors with the exteriors to achieve a perfect harmony between the two. The growth of the practice may surprise you but it can also be seen as another dimension of interior designing. Thus, Feng-shui which is rightly the combination of practicality and spirituality is one of the major factors in real estate today, making a mark in the West and not only in Asia.
In the last few years, India has become a property investment hotspot with many large scale property developers either in the process of developing or planning developments. This real estate boom has not only lured dozens of consultancy and finance companies but also foreign investors and nationals. Fera (Foreign Exchange Regulation Act) has given way to Fema (Foreign Exchange Management Act) and things have improves and changed since then. What is being laid emphasis on now is the residential status.
PIO’s and NRI’s
As such there are two categories broadly; one belongs to Indian residents and the other to foreign residents. These foreign residents can be further be categorized as NRI’s and PIO’s. To define, where an NRI is an Indian citizen residing outside India, a PIO is a citizen of another country who is regarded so because at one or the other point of time, held an Indian passport at any time or if his father or grandfather has been a citizen of India.
Non Indian’s Need Approval
These facts are significant for foreign nationals while dealing with property in India. The law makes it very clear that a foreign citizen who is a resident of India can buy and sell properties in but a foreign citizen of non-Indian origin can acquire any immovable property in India only with the prior approval of the RBI (Reserve Bank of India). The NRI’s and PIO’s have a general permission to purchase real estate in India, nether there has been a limit fixed to the properties. However a foreign national of non-Indian origin can acquire with the consent of RBI but only residential accommodation on lease and that to for not more than five years. Thus, the foreign nationals need to document their citizenship before acquiring any land in India. Where it may seem that Fema makes it a little more difficult for foreign nationals of non-Indian origin to buy property in India, you shouldn’t forget that the government is encouraging the real estate boom in India!
Due to its centered geographic location and rich reserves, Dubai has achieved a centre stage among the other economies of the world. The western market has been using Dubai as a base for their operations in Eastern markets especially China and India. Its location being midway between Far East and Europe makes it a potential target of multi-national companies to conduct their operations all over the globe. Another advantage Dubai holds is of being a player in the economy of the Arabic world. It also offers conditions like full tax exemption on capital gains which uniquely serves to its economy and economic conditions.
Office rent up by 20%
Where the country offers a rich history, all modern conventions and an economic boom it has been dealing with inflation all through. Dubai attracts a big lot of tourists and firms, both on the temporary basis which has lead to high rents all through. Another reason why the situation has become so is because of the fact that even the real estate has undergone a boom in UAE. The demand has surpassed supply in lieu of business expansions making the office rents in Dubai rise up by about 20%.
Where this has given a boom to other economies like India due to their proximity to UAE, it seems Dubai is facing the two-edged sword. This also makes it a bit costlier for real estate developers or business firms and MNC’s targeting Dubai for expansions.
Rent cap
However, the new cap on rent increases in Dubai is aimed to have an impact on curbing the inflation however in a limited way. The shortage of housing has driven prices to sky-rocketing. Dubai has already initiated an annual rent cap of 5% from January 1. The decree states that pro-agreement a landlord won’t be able to increase the rents for the next two years to come. With a statistics body that UAE plans to come up with so as to keep a check on inflation, it seems rents will soon see a level.
|
|
|
