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The interior design landscape is constantly changing as homeowners and designers look for new ways to make their living spaces more functional, comfortable, and visually appealing. Several key trends have shaped how we think about interior design and how we decorate our homes in recent years. So, in this article, we will discuss how property interiors can impact a property's value and some of the popular and affordable property interior styles of 2023.  How Property Interiors Affect a Property's ValueWhen it comes to the interior of a property, several key factors can affect its value. These include: Condition The overall condition of a property's interior can significantly impact its value. A well-maintained and clean interior is more likely to be perceived as valuable, while a poorly maintained or dirty interior can decrease the property's perceived value. Design The interior design and layout of a property can also affect its value. A well-designed and functional interior can make the property more attractive to potential buyers, while an outdated or poorly designed interior can decrease its perceived value. Amenities Certain amenities and features can significantly increase the value of a property. For example, a property with a brand-new kitchen and bathroom may be considered more valuable than a property with outdated ones. Lighting and colours Proper lighting and colours also play a great role in increasing the value of a property. A well-lit room can make a property feel more open and spacious, while the use of warm colours can make it feel more inviting. Staging Staging a property, which is the process of arranging furniture and decor to make the space look more appealing to potential buyers, can also increase a property's perceived value. Trending Property Interiors for 2023In India, we have a rich heritage of design and architecture influenced by various cultures and traditions over the centuries. Today, multiple property interior design styles are popular in India, each with its own unique characteristics and appeal. Some of them are listed below: Minimalism Minimalism Minimalism is a style that emphases simplicity and functionality. The focus is on clean lines, neutral colours, and minimal clutter. This style is perfect for those who want to create a sense of space and tranquillity in their home. Minimalism is becoming increasingly popular in urban areas, where space is often at a premium. Smart Home Technology Smart Home Technology Smart home technology involves incorporating technology to make a property more automated, convenient, and energy-efficient. This can include things like smart thermostats, smart lighting, and smart appliances, as well as home automation systems that allows you to control multiple devices with a single app or voice command. This technology can also be integrated into furniture and other design elements to create a seamless and cohesive look. The goal of smart home technology in property interiors is to make the home more comfortable, functional, and sustainable while also making it easier to control and monitor. Using Natural Elements in Property Interiors Using Natural Elements in Property InteriorsIncorporating natural elements into the home is another property interior trend that has been gaining popularity in recent years. This includes things like wood, stone, and plants, which can add warmth and texture to a space. This trend aims to create a sense of calm, serenity, and connection with nature, which can improve the resident’s overall aesthetic, functionality and well-being. Sustainability SustainabilityIn addition to these trends, there has also been a growing focus on sustainability in property interiors. This includes using eco-friendly materials, incorporating energy-efficient features, and designing spaces that are easy to maintain. This trend is driven by the need to reduce our environmental impact and create healthy living spaces for both people and the planet. Wrapping Up As technology, sustainability, and minimalism continue to shape the property interior landscape, homeowners need to stay informed about the latest property interior trends and innovations in order to create living spaces that are both beautiful and functional and that reflect their personal style and values. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
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The Indian real estate sector is at an exciting down. After surviving the COVID-19 storm, it faced new challenges in 2022. Rising input costs, the current geopolitical situation, and rising interest rates are all issues that the sector had to face. Besides, the IMF forecasted that India's economic growth would slow to 6.8% in 2022, from 7.4% in July to 8.2% in January. Following a record-breaking increase in property prices in 2021 and 2022, as well as a rise in mortgage interest rates to their highest level in 20 years, some factors may influence home buyers in 2023.  1. New TechnologiesThe luxury market was the main driver of real estate growth in 2022, which is expected to continue in 2023. There will be a rise in demand for larger, luxury houses because of the growing popularity of WFH and hybrid working models. Despite rising home prices, there is still a strong demand for homeownership. Younger and first-time homebuyers will dominate the real estate market. Commercial real estate is also showing signs of expansion. By 2023, the organised retail real estate stock is expected to grow by 28% to 82 million square feet. Global headwinds have inspired NRIs to invest more in Indian real estate. This has become a trend because the Indian rupee has depreciated, and the economy is doing well. Residential real estate investing has increased due to urbanisation and rising household income. India is one of the top ten fastest-rising housing markets in the world. 2. Government PoliciesGovernment policies can also have a great impact on the property market. For example, if a government initiative increases the availability of affordable mortgage options, it can make it easier for people to buy homes and could lead to increased demand for properties. Whereas, if the government announces policies like raising taxes on property purchases, it will negatively affect people's purchase decisions to buy homes which could lead to a slowdown in the market. It's very important to monitor any change in the policies that may affect the industry in the coming year. Understanding how the government influences the market can help you make better decisions about buying a home. 3. Demographic TrendsLet’s take an example, if a large number of young professionals move into a new city, they are more likely to look for a home in the surroundings. However, if they plan to leave that city, the market demand for housing in that particular city will slow down. This way observing the demographic trends around a person can help him in his purchase decision of buying a home. In 2023, monitoring demographic trends in your local area and beyond will become important as understanding who is moving in and out of a neighborhood can provide insight into the potential direction of the property market. 4. Sustainability QuotientClimate change is having a great impact on real estate investment. Real estate owners and investors are putting increasing pressure on the environmental, social, and governance (ESG) investing disclosure. In the post-pandemic times, homebuyers were more conscious of their carbon footprint and the environment and sought homes that reflect this attitude. Most homebuyers are willing to pay a premium for a green home. Green homes that balance nature living will be a trendsetter in 2023. Along with health benefits, these homes improve quality of life, have lower operating costs of maintenance, and have a higher resale value. Given the many benefits that sustainable buildings offer, real estate investing in this sector will continue to rise in 2023 and beyond 5. Future Growth PotentialWhen evaluating future growth potential, a homebuyer considers the likelihood that the value of a property will increase over time. This can be influenced by factors like:
However, along with these factors we have other factors such as changes in the market conditions or local economy, which can have an impact on the property value. According to a few developers, it is foreseen that the prices of properties will increase this year, but the factors we have read through above can still bring a significant rise in demand for good properties keeping aside the price range. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
With so many emerging ways of investing options, the real-estate sector has never been more lucrative. The new investment opportunities provided by Real-estate Investment Trusts (REITs) and Fractional Ownership (FO) in commercial properties have made it possible for smaller investors to experience high returns on commercial grade A properties that were previously out of reach. In this article, we discuss fractional property ownership and REITs as two such alternatives. Through this, readers will learn what each option is and their pros and cons.  What is Fractional Property Ownership?In its most literal sense, fractional property ownership refers to a stake in any asset. Just like owning a percentage of a company's equity shares makes you a part-owner, fractional ownership in real estate lets you invest in shares of real estate properties, where you own the share of the property based on the amount you have invested. What is a Real Estate Investment Trust?REITs are a great way to diversify any investment portfolio. These firms offer higher returns to investors by owning and managing large real estate projects that generate income from rental or development activities. Besides, REITs allow mutual funds to distribute profits to their shareholders; under taxation rules, 90% of all taxable gains must be returned in accordance with investor’s ROI expectations. Fractional Property Ownership vs REITs: Pros and ConsTo fully consider the pros and cons of fractional ownership and REITs, it's best to compare the two on their major offering points. 1. Property Type The fractional investment model allows investors to purchase both existing and under-construction properties. According to REIT operational rules, at least 80% of a REIT's investment portfolio should be invested in income-generating properties. This means investors need to purchase existing assets. 2. Capital Requirement The first thing to consider is your investment capacity or capital requirement. Fractional ownership requires a minimum investment of between 10 to 25 lakhs. However, the figure may differ depending on the property type and value. The initial capital to be invested in REITs depends on your ability. You can make even smaller investments on REITs. 2. Lock-in Period Fractional property ownership doesn't have a defined lock-in period, meaning that investors can sell their shares anytime they wish. Investors are free to sell their stake in the property at any time. However, some work may be required to determine the valuation of the investor's stake. Publicly traded REITs don't have a defined lock-in period either. This gives a REIT investment a fair amount of liquidity. However, investors may be constrained by changes in the market value of their asset and can only profit if the shares are sold at a price higher than what was paid. Lock in period for sponsors and sponsor group members of REIT have a lock in period of minimum three years. 3. Hidden Charges Regulations mandate that REITs must distribute at least 90% of the net distributable cash flows to their investors to avoid scams. With fractional property, there is a complete distribution of the net distributable cash flows (post taxes, etc.) This is because the fractional company doesn't impose any hidden charges. However, it charges a small fee for its property management services. 4. Transferability Investors in a fractional property ownership model are free to transfer their fractional ownership stake. REIT investors don't directly own property. Thus, they cannot transfer property ownership. However, they may sell their shares at any time. 5. Diversification Investors can control the diversification process with the fractional investment option. They have complete control over which properties and asset classes they invest in. REIT investors achieve diversification through share purchases. Since REIT portfolios are diversified by the real estate market and real estate sector, investors are not actively involved in portfolio construction. 7. Valuation In a fractional property ownership investment, the property is valued at regular intervals so that investors know the value of their investment. This is especially helpful when unit holders need to sell their holdings. REITs require property valuations at least twice per year. Also, the stock price of publicly traded REITs fluctuates constantly and can be found by looking up the ticker symbol for the REIT. 8. Volatility In a fractional ownership model, the property is valued on a monthly or quarterly basis. Therefore, values tend to be less volatile. During periods of economic distress, the share price of publicly traded REITs can experience significant fluctuations even if there are no substantial changes in the fundamentals of the underlying properties. 9. Time Horizon It's very important to understand the time horizon for the investment. Neither investment option has a lock-in period; however, the time horizon should be longer to earn decent returns. You may not reap the full benefits if you exit a REIT investment in the short term. Similarly, it takes some time for the returns on a commercial fractional ownership property to stabilise. Which Is The Better Investment?With so many differences between the two real estate investment options, it's normal to wonder which is the better investment. The truth is neither is objectively better than the other. They are both capable of producing healthy returns. However, each commercial real estate investor has unique preferences, risk tolerance, and time horizon. Therefore, one of the two alternatives may be a better fit for a person's needs. Also, each investor must conduct due diligence and select the best option suited to their specific situation. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
In 2022, the Indian currency depreciated by 5.2% against the US dollar. Due to the Rupee depreciation, rising international interest rates, and the geopolitical situation, the NRI investment plans have begun to increase as the Indian real estate market seems more affordable to the foreign investors. The breakdown of the currency value in a floating exchange system in par with the other countries is known as Rupee Depreciation. Any variations in a country's currency value can impact its real estate market. It may also influence the costs associated with the real estate industry, such as raw materials, human resources, transportation charges, equipment costs, and so on. So, let's take a quick look at how the rupee depreciation can offer several benefits to NRI investment plans in real estate.  Improved AffordabilitySince the value of the rupee has depreciated against foreign currencies, it has become more affordable for NRIs to buy a property in India. This can especially be appealing to the NRIs living in countries with stronger currencies, such as the US, Canada, or Australia. For example, if an NRI is earning in US dollars and wants to buy a property worth INR 1 crore (about USD 134,000) in India, a 5% depreciation in the value of the rupee would make the property cheaper by about INR 5 lakh (about USD 6,700) thus, increasing their purchasing power. According to Niranjan Hiranandani, vice chairman of NAREDCO, the current global currency situation allows NRIs to purchase more square feet of Indian real estate. Higher rental incomeA depreciation in the value of the rupee can help NRI invest in a property in India with much ease. It can also help them work on their already existing property and increase the occupancy value. They can opt to purchase a luxury property as well, which inturn will give them a higher income. However, investing in a ready-to-move-in property is more profitable than an under-construction property to generate high rental income. But, cautious steps are required for such NRI investment plans as there are high chances of suffering losses if invested in the wrong property without research, as the market may change once the rupee stabilises. NRI Property Investment PlanGetting loans for real estate deals have become an expensive task. But when the value of rupee goes down, it gives NRIs a chance to invest in real estate in India. As a result, the number of requests for real estate from other countries has gone up. People often think that when the value of rupee depreciates, it would be good for a NRI to buy property in India. But this is only possible when you are at the final stage of your house purchase and are waiting for the money to be transferred. A NRI may have to wait at least two to three months to complete all the procedures to buy a property. During that time, there are chances that the rupee’s value may become more stable which can affect your property investment plan you made due to the depreciation in the value of the Indian currency. Capital AppreciationA depreciation in the value of the rupee can lead to capital appreciation in the long term. For example, if an NRI buys a property in India when the value of the rupee falls, he has made a capital investment. So sometime in the future when the value of the rupee appreciates he will be capable of receiving higher returns of his investment. Diversification of PortfolioRupee depreciation can also provide NRIs with the opportunity to diversify their investment portfolio. By investing in Indian real estate, NRIs can reduce their risk and provide a hedge against fluctuations in other investments, such as stocks or currencies. This can help investors protect their NRI investment plans and ensure their investments are well-balanced. In addition, when the value of the rupee is low, the cost of sending money to India is also lower, making it easier for NRIs to fund their real estate purchases. Debt Mutual fundsNRIs put a lot of their money into debt mutual funds because they have a higher chance of making money and are better for their taxes. Most of the debt mutual funds’ money is invested in property. On the other hand, the rise in interest rates has hurt the duration approach. When interest rates go up, it’s likely that funds with very short maturity span and debt funds that use the accrual method will be comparatively successful. You should be aware that your investment plans in debt mutual funds that hold medium to long term measurement could become more volatile. But NRIs who plan to sell their house and convert it to USD in the near future might be able to get back some of the value of their debt mutual funds that they lost during Rupee Depreciation. Other FactorsIt's important to note that rupee depreciation is just one factor that can affect NRI investment plans. Other factors, such as economic growth, infrastructure development, and government policies, also play a major role in the performance of the real estate market in India. NRIs should consider these factors and do their own research before making any real estate investments in India. It's also important to note that rupee depreciation can negatively impact the real estate market. For example, it can lead to higher inflation, which can make it more expensive for NRIs to invest in real estate. Or it can lead to a slowdown in economic growth, which can impact the demand for properties and the value of investments. Final WordsDespite these potential negative impacts, the overall benefits of rupee depreciation for NRIs investing in real estate in India are significant. NRIs can take advantage of increased purchasing power, attractive returns, more competitive pricing, and the opportunity to diversify their portfolio. By carefully considering these factors, it's possible to create informed NRI investment plans and earn significant profits. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
At PropertyAngel, we know how a good tenant helps a property management company by being reliable, responsible, and easy to work with. Therefore, on our 8th anniversary, we launched "PropStar" - India's first-ever tenant reward program. PropStar rewards tenants with points for meeting a specific goal or "action". After you reach a certain PropScore (the total number of points earned), your credibility as a tenant improves, which increases your levels to Bronze, Silver, Gold, Platinum, and Diamond. You get exciting cashback and rewards when you reach one of these levels.  A Quick Overview of PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) to know more about our services. So, without further ado, let's look at how PropStar can help tenants. Benefits of the PropStar ProgramPropStar aims to reward tenants for taking positive actions. The more positive actions you take, the more points you make. Let's take a look at the importance of these actions and how PropStar benefits tenants for doing so. Paying Rent Before TimePaying rent before time can give you peace of mind because you no longer have to worry about the due date or rush to arrange the money at the last minute. Thus, PropStar rewards you with 500 points to pay rent before time. Paying Rent On TimePaying rent on time can help you manage your finances by budgeting for other expenses. Also, it allows you to save money on late fees and improve your credit score. Thus, PropStar rewards you with 200 points for paying rent on time. Referring Other Tenants Today, it's challenging to find a responsible, reliable tenant who meets all the requirements. Thus, PropStar rewards you with 500 points upon conversion if you refer other good tenants to PropertyAngel. Keeping the Property Well Maintained Taking care of the property helps preserve its value and prevent it from deteriorating over time. Thus, Propstar rewards you with 1000 points to keep your property well maintained. Completing 6-Month Inspection on TimeCompleting the 6-month inspection on time protects the landlord's investment and ensures you're committed to maintaining the property well. Thus, PropStar rewards you with 1000 points for completing an on-time inspection. Other ActionsThe PropStar program also rewards points for other actions like contract renewal, finding a replacement when vacating, vacating and choosing another PropertyAngel property, etc. Final WordsPropertyAngel believes that PropStar will help tenants save money, have more fun, and feel more satisfied with their living experience. Comment below and let us know what you think of this program.
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