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5 Ways in Which Data Analytics is Contributing to Real Estate Growth in India

Businesses across various industries in India are leveraging big data nowadays. Thanks to data analysis, businesses enjoy streamlined resources management, a rise in operational efficiencies, big development opportunities, accelerated and smart decision-making as well as improved product development among other benefits.

When it comes to the real estate sector, it is no different. More and more companies, investors, sellers as well as buyers are taking to data in a major way to create algorithm models and predictive analytics to eliminate the guesswork. As a result, they are coming up with more accurate predictions. Furthermore, these estimates provide numerous advantages to the stakeholders.

Here are 5 ways, data analytics is contributing to real estate growth in India:

Digitizing & Automating Real Estate Evaluation

Today, the biggest deal-breaker in the real estate sector would be the price. The present rate or the estimated price in the future of the property assists in determining if it will be the correct investment or not. With the help of real estate data analysis, models can be built using ML algorithms to assess the valuation of any property based on historically relevant details such as the age of the property, location and condition. It can deliver an evaluation within a few seconds for overall consideration.

Optimizing the Buyer-Selection Process

Real estate data analytics India can not only assist you to determine the worth of your property, but it also can aid you to seek the right people who are more likely to be interested in a particular property based on their preferences, location, budget and so forth. Data captured by the buyers can be used to recommend properties that cater to their requirements the most. Similarly, real-estate firms can acquire the information of the buyers who are the correct profile for their offerings, so they can invest the optimum amount of time and energy in potential buyers who are the most serious.

Evaluating & Observing Market Trends

Today, to continue a real-estate business, it is necessary to have the correct understanding of every feature that plays a key role in estimating a property’s value. With the increasing factors, it is very significant to keep up to date and understand all the moves your competitors are making. Data Analytics in India becomes very important in assessing and checking the market trends and comprehending the impact of other factors on real-estate expenditures.

Understanding Patterns to Expect Future Development:

Unlike retail, real estate does establish a specific pattern in its development that typically compliments the local trends, economic stability, demographics, government policies, provisions/subsidies around purchasing real estate, interest rates, and so forth. By making use of data analytics, all these together echo the correlation with the price and aid in uncovering the patterns that assist in estimating the future development of real estate.

Increasing Profits & Decreasing Overall Development Expenses:

Real-estate firms invest their money in land acquisition and then development. Data analytics provides visibility into the valuation of the land to make sure they purchase the land at an optimal rate and development cost can also be managed by tracing how much raw material is required to construct any building space by evaluating the historical data to reduce the wastage which leads to an optimized cost of development. Thanks to the help of data analytics, real-estate firms can predict the value of the property and can sell accordingly to ensure augmented returns on every sale.

CRE Matrix is a leading real estate data analytics company in India. They make use of data analytics to help stakeholders across different industries make well-informed business decisions.

For more such exciting analysis and details on real estate visit CRE Matrix.

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4 Facts You Need to Know About Security Deposit in India?

When leasing a commercial property, the tenant is required to pay a specific amount of money upfront before moving into the space. But many are not fully aware of the facts connected to it such as how much money has to be paid as a security deposit and what vital elements that need to be included in the security deposit clause of the lease agreement. Once you’re aware of these pointers, you can go ahead and sign the lease. 

What is Security Deposit?

Security deposit in India is a significant amount paid by the tenant to the landlord at the time of moving into the leased property. It is held all through the tenure of the lease and paid back once the lease is over. This money is important for the landlord as the amount is kept aside for unforeseen conditions that may come up during the tenancy. For example, if the tenant does not adhere to the contract and damages the property or does not pay rent, then the landlord can utilize the security deposit for repairs or rental compensation.

Let’s take a look at 4 vital facts about security deposits you need to know before you sign the lease for commercial property:

Security Deposit Amount Varies in India

The security deposit for a lease that is required before moving into a commercial property varies across different states in India. In major cities, the landlord charges a security deposit as per the cost of living, the type of area, and the locality. The higher the property’s value, the higher the lease as well as the security deposit.

The income level in cosmopolitan cities also plays a role in the monthly rental as well as the security deposit. For instance, the security deposit required by landlords is up to 10 months or 1 year’s rent in Bengaluru.

Awareness of Laws Surrounding Refund of Security Deposits 

According to the Model Tenancy Act, it allows the tenant to reduce rent arrears and other repair charges from the security deposit and refunds the remaining deposit when the tenure of the lease ends, and the tenant leaves the premises. So it’s important to be aware of all the laws surrounding security deposit for commercial property before you sign the lease.

Reasons for Losing Security Deposit

In certain cases, you don’t get your security deposit back. Some of the main reasons why a landlord will not return your security deposit are when there are damages that are done to the property when you have leased it. This includes tampered wall paint, broken tiles and floorings or damaged furniture, among many others.

What Happens if the Landlord Does Not Return the Security Deposit?

In such a scenario, the tenants are free to file a civil suit against the landlord, particularly if the security deposit is not refunded within the stipulated duration. Moreover, criminal charges of charges can also be filed against the landlord. Furthermore, a police complaint can be filed if the security deposit refund is denied.

In a nutshell, these are some of the facts about security deposit for commercial space in Mumbai.

CRE Matrix is a leading real estate data analytics company in India that showcases crucial details about security deposits as well as the leasing status of numerous companies across various sectors to stakeholders.

For more such exciting analysis and details on real estate, visit CRE Matrix.

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CRE Charter: Showcasing Trends & Patterns in the Indian Commercial Real Estate Sector

Following the deadly pandemic that impacted all the businesses and industries of this country, the commercial property sector in India has since then witnessed enormous growth and development. Despite the challenges faced in 2020 and 2021 due to the global health crisis, which led to the closing down of restaurants, cafes, retail outlets, supermarkets, movie theatres, grocery stores, and other businesses, the industry still had an encouraging forecast for 2022. 

The development and growth of commercial real estate India have increased thanks to the surging demand from renters from several sectors. A promising future for the real estate industry is also being paved by the constant need for commercial real estate in this country.

What is Commercial Real Estate Sector?

Commercial real estate (CRE) is essentially property that is exclusively used for business-related activities or as a workspace. It is not the same as space used as a residence, which would fall under the category of residential real estate. Usually, tenants lease commercial space in India to conduct their businesses that would generate income and bring in big revenue. This enormous segment of real estate can range from a small shopping center to a huge supermarket. It also includes office space India, healthcare facilities, warehouses, and many more comprise the various kinds of commercial real estate. 

It can be extremely vital and significant for companies and brands to keep track of and compare trends and patterns in the Indian commercial real estate sector. This is where a company such as CRE Matrix, a real estate data analytics firm India, comes into the picture. It offers an array of tools and products that can help in tracking patterns and trends in the commercial real estate market in India. One of them is the robust and all-encompassing CRE Charter. 

What is CRE Charter? 

CRE Charter is a comprehensive and smart platform that plays a role in tracking patterns and trends in the commercial real estate sector in this country. Developers, can especially, benefit from this tool as it can offer crucial and significant data concerning the real estate industry.

How can CRE Charter Help Developers?

Developers can gain from CRE Charter in many ways:

  • It provides bespoke charts that help demonstrate patterns in the commercial real estate sector in India. Developers can make informed decisions in their business based on the information that is available to them.
  • It provides data that showcase trends in the real estate industry. Developers who subscribe to the platform can change their strategies or improve on them based on the current trends in the market. 
  • CRE Charter provides authentic and transparent data from the commercial real estate sector in India. Developers can take a look at other companies and learn from their performance.  

To sum up, CRE Charter is one among the many tools provided by CRE Matrix that can prove to be immensely useful to developers belonging to the commercial real estate sector. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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How can CRE Leases Help Companies Keep Track of Leasing Trends?

The commercial real estate sector in India is huge. As more and more startups are emerging, it has increased a need for more and more office space. This has led to an increasing number of businesses taking up more commercial space for leasing. Considering how important leasing is for a business and the revenue it can generate, it is extremely vital for companies to keep track of leasing trends of various brands and organizations across industries.

This is where a firm such as CRE Matrix can hugely benefit. It is a leading real estate data analytics company India that allows stakeholders from various industries to view and compare crucial lease-related data that can prove to be immensely useful for making informed decisions about their businesses. CRE Matrix offers various tools – for both commercial & residential. One of the platforms that companies can use to understand more about the leasing trends of the market and compare their performance with their competitors is CRE Leases.

Let’s talk a little bit about CRE Leases and how this tool can help businesses comprehend the newest leasing trends.

What are CRE Leases?

CRE Leases is a tool offered by CRE Matrix that can aid companies and brands to understand a little about the leasing trends in the market today in this country with respect to offices, warehouses, retail, and so forth.

How Do CRE Leases Work?

The client can seek leasing data from the number of filter buttons available. Some of the important ones are:

Lease Status: Here, you can select the status of your lease or the status of the lease you wish to view. The options that you can choose from are: active, inactive, active due to renewal, active as co-working and in-active as co-working.

MacroMarket: Once you have chosen the market, you need to select the macromarket. For e.g.: If you have selected Mumbai as your market, then the macromarket can be Central Suburbs, Western Suburbs etc.

MicroMarket: After you have chosen the market, you need to proceed to pick the micromarket. For e.g.: If you have chosen Mumbai as your market, then the micromarket can be Andheri (E) or Borivali (W).

Grade: Here you can choose the grade of the building. For e.g.: Grade A, B, C, shopping mall, 3 star, 5 star and so forth.

Area Leased: In this filter, you can select the range of the area that has been leased.

Tenant: You can choose the tenant whose details you wish to view.

Landlord: You can select the landlord whose information you wish to take a look at.

Agreement Type: Here, you can pick the kind of leasing agreement you have been seeking. For e.g.: Lease Deed, Leave and License, Transfer Deed and so forth.

Lock-In Period: In this filter, you can select the duration of the lock-in period.

Rent-Free Period: Here, you can choose the start and the end range of the rent-free period.

Security Deposit: You can select the range of the security deposit in this specific filter.

To sum up, the above-mentioned filters are just some of the many options available for you to get lease data of a number of companies across industries. There are many other filters available that can give you the complete picture of the information you’re seeking.

CRE Leases is a comprehensive and robust offering, powered by CRE Matrix, which allows you to compare crucial leasing data. Trends and patterns emerge from the vital information provided.

If you wish to be the recipient of significant lease information, do subscribe by visiting CRE Matrix.

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5 challenges faced in securing a profitable commercial lease in India

As the world slowly bounces back after the pandemic, office space leasing in India reached an all-time high this year.

What is Commercial Lease? 

A commercial lease is an agreement between two parties in which the landlord permits the tenant to use their land or buildings exclusively for a particular duration (the tenure) in exchange for rent or a premium. 

Let’s look at some of the challenges companies face when trying to secure a profitable commercial lease India: 

Space

When looking at a commercial space in Mumbai, it’s important to determine how much room is encompassed in the rental. It is pertinent to clarify whether your rental expenditure was estimated using rental square footage or available square footage. If you have a good understanding of the space that makes up the rental, you will be able to determine whether the quoted rate is fair or not, and if needed, you will be able to negotiate well. 

Lease

The duration of the lease is referred to as its ‘term’. It talks about the commencement and end dates of the agreement, as well as whether or not there are any particular renewal options. It is extremely significant to keep the company’s requirements in mind when looking at a lease. A longer lease implies less flexibility in adjusting to change as the company grows. Moreover, if the market price of the rent drops, accepting a long lease period in advance could lead to the company paying above the market rent for the leased space. 

Dispute Resolution 

When you’re looking to lease an office space Powai, it’s important to pay attention to the terms of the contract, particularly for any dispute resolution. Expenses of litigation can easily exceed those for a small business with fewer resources. 

Legal Compliance 

Commercial spaces in India are generally subject to a horde of laws and regulations. Usually, a landlord is considered to be in charge of making sure that the entire property is in adherence with the law. But it’s vital to understand the expectations for any individual leased space. You need to ask the landlord to explain in detail the conditions of the lease if it’s not clear who is tasked with ensuring compliance with pertinent laws. 

Termination 

Any commercial tenant needs to be fully aware of all the procedures involved in terminating a lease early as well as the stipulations that come with ending a lease before any renewal. If the lease does not address any right to cancel, it might be wise to secure a right to end it early in exchange for the payment of a specified amount of liquidated damages to the landlord to give yourself an out. 

In a nutshell, these are some of the challenges that need to be addressed before securing a profitable commercial lease in India. 

CRE Matrix is a leading real estate data analytics firm in India. It gives access to several companies where you can take a look at the status and minute details of numerous commercial leases in the country. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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3 Ways in Which a Lease could be Terminated

In India, the landlord-tenant association is regarded as a jural relationship and is regulated by the provisions of the Transfer of Property Act, 1882 (Act). When it comes to a landlord/tenant connection, the parties are typically observed as a lessor (landlord) and lessee (tenant). The contract under which the landlord-tenant relationship is tied is a lease agreement. 

A real estate lease contract is a binding agreement between you and your landlord. Thus, if you feel the need to prematurely terminate your lease, there will be consequences – legally and financially. There are many reasons that can be used to end a lease, but the majority of them will not offer you legal relief from your landlord. 

Occasionally, after signing a rental agreement or lease, a tenant may feel the need to leave the rental unit prematurely for several reasons. In the same way, a landlord can terminate the lease under specific circumstances. It is vital to adhere to state laws, as well as specifications that are listed within the lease, for delivering notice of intent to end a lease. 

Usually, lease termination in India can happen for a variety of reasons and by both the parties – landlord and tenant 

Termination of Lease by Tenant 

Since a lease is bound by an agreement, tenants have to adhere to the length of the tenure specified. This means that they are accountable for paying the rent stated during the duration of the lease. There are exceptions to this rule, especially if the landlord breaks or violates the lease. 

If the landlord breaches the terms of the lease, particularly health and safety codes, the tenant may be able to leave without giving notice or providing less notice than needed. In case there is a natural disaster or significant impairment to the property, it prevents the tenant from continuing to stay in the rental unit. However, if the tenant violates a lease without a legally protected reason, the landlord is entitled to sue for damages.

Termination of Lease by Landlord 

A landlord is able to legally end a lease if the tenant violates the terms of the lease or has broken the law. The violation by the tenant needs to be significant like late rent or having a pet despite the rule stating ‘no pets allowed on the premises. Other violations of the law, like selling drugs on the premises also justify the landlord’s decision to terminate the lease. 

The landlord needs to first dispatch a termination notice to the tenant, thereby making it clear that the tenancy has ended. The tenant may be offered time to amend the violation, by paying outstanding rent, for instance. There will be a notice that declares that the tenant needs to move out of the premises or risk eviction. 

Issues Pertaining to Security Deposit 

Generally, the landlords have about two weeks to one month to give back the tenant’s security deposit amount after the lessee vacates the rental premises. Landlords may subtract from the tenant’s security deposit for legitimate reasons. Deductions need to be shown in a written document and itemized, and the payment needs to be refunded for any deposit balance. It is vital to check with the landlord if the deductions are not accurate. Any agreement reaches needs to be logged in writing. 

In a nutshell, there are many ways in which a termination of a lease agreement India can happen. If you wish to know the leasing status of many companies across the country, check out CRE Matrix and its many tools for it is the leading real estate data analytics company India.

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Significant Clauses in Commercial Lease that Tenants Need to Know

When you sign on to a commercial property on lease, a contract for the same needs to be carefully executed and planned. There is generally a massive rental outgo in commercial establishments and therefore, the premises to be taken on rent needs to be completely checked. The rental agreement becomes a vital part of your business and the conditions therein will affect your work and operations, as long as you are on those premises. 

Let’s look at some of the important clauses in a commercial lease India that a lessee should be aware of:

Competitor Clause: It’s imperative that you try to get a competitor clause in the leasing contract. This clause will prevent the landlord from renting out space in the same building, in which you are shifting, to your competitor. This can work out to be extremely useful, especially if you’re a retailer. 

Concessions in Rent: You need to find out if the landlord can offer specific relaxations, such as waiving the rent for the initial one or two months of the lease duration. Landlords can be flexible if the premises have been available for quite some time. Other relaxations can comprise sharing of renovation expenses or a paint job for the premises that will be paid for by the landlord. 

Gross Rent Lease or Net Rent Lease: There needs to be sufficient clarity between your landlord and you, about the elements other than the rent, such as maintenance fees, property tax, insurance, and expenditures towards common areas.When it is about the gross rental deed, you will be responsible for paying the rent and other relevant expenses. In a net lease deed, you will only be entrusted with the task of paying the base rent. 

Lease Termination Conditions: This is a significant clause in commercial lease. Inspect the conditions, under which the landlord can end the lease, as they can often be tight. One needs to plan for circumstances where the building is sold by the landlord, while the lease term has not finished. 

Lease Renewal Clause: Lease tenure of one or two years will offer you the flexibility, especially if you own a small business, to move out for expansion or to better premises when needed. Nevertheless, there needs to be a clause to renew the agreement, after the initial one or two years, at the same rent or a hike that has been agreed upon mutually. When you take a commercial space on rent, your leasing agreement needs to have a proposed escalation in rentals in writing, in case you opt to renew the contract. 

Security Deposit and its Return 

There will be a set sum that you would have to deposit with the landlord as security. This security deposit will be equivalent to two or three months’ rent. You need to try and negotiate the amount you have to keep as the security deposit. If you find that there are numerous vacant establishments in that neighborhood or if the landlord is not corporate, there is more scope for negotiation to work. Tenants need to also inspect the conditions relating to the return of the security deposit. 

In a nutshell, these are a couple of the significant clauses in a commercial lease every tenant should be aware of. 

CRE Matrix will give you all the leasing data including clauses across businesses and sectors. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Real Estate 101 – All About Commercial Property Leasing in India

The real estate industry is regarded as one of the most universally recognized sectors. It contains four sub-sectors including housing, hospitability, retail, and commercial. The evolution of this industry is accompanied by the development in the corporate setting and the need for office space as well as urban and semi-urban accommodations. 

In India, the real estate sector is considered to be the second-highest employment generator, following the agriculture industry. It is anticipated that this sector will gain more non-resident Indian (NRI) investment, both long term as well as short term. Bengaluru is believed to be the most preferred property destination for NRIs currently. 

While there is a high demand for purchasing commercial properties, there is a rise in leasing commercial lease India as well following the reduction in the severity of the pandemic. 

What is Commercial Leasing?

A commercial leasing India is essentially a lease that is utilized for a commercial property where a company would conduct its business. These leases comprise an array of unique terms, including tasks connected to the upkeep of the property. 

Unlike residential leases which are quite easy to comprehend, a commercial lease can be a little more complicated as it comes with numerous terms and conditions. Moreover, commercial property on lease is notonly given out to people but also to entities like the sole proprietorship, corporates, or HUF. 

Kinds of Leasing Structures in India

On a broad level, there are roughly two main types of leases in India:

Financial Lease

It refers to a long-term duration lease. It encompasses the capital outlay in addition to the required rate of return on funds for the duration of the lease. In this case, the lessor plans to cover the expenses of the capital of the property and also wants to acquire some required rate of return. This financial lease cannot be canceled and the lessee has to make several payments in order to use the property. 

In this case, the property rights continue to stay with the owner during the lease period. However, when the lease is about to expire, the tenant party is provided the choice to buy said property by paying the residual money. The amount is generally estimated at 10% of the value of the property or less. 

This kind of lease can be observed as a loan. The lessee will keep paying the lease rent and pay the remaining amount in the end to own the property.

Operating Lease 

When it comes to operating lease, the legal ownership of the property remains in the hands of the owner of the property. The owner only spreads the right to use his property for economic uses or business purposes for a pre-defined duration of time. 

Once the duration of the lease is coming to an end, it can be determined whether to lengthen the lease and continue to allow the usage of the property to the lessor or terminate the contract. In this case, the ownership always lies with the true owner throughout its run. 

If you wish to look for commercial properties for rent, you can take the help of India’s best real estate data analytics company – CRE Matrix – that allows stakeholders across different industries to view significant leasing data of various companies.