"Location, location, location" is a common mantra in real estate. And it's good advice—except for one thing: Most people have no idea what it really means.

A good location can signify different things to different people, of course, but there are also objective factors that determine a home's value. Depending on your personal needs and preferences, you may not be able to buy a home with all of these factors. And that's OK. After all, a home is much more than just an investment. However, the next time you're shopping for a new property, keep the following factors in mind.

KEY TAKEAWAYS

• Location is key to valuable real estate. Homes in cities that have little room for expansion tend to be more valuable than those in cities that have plenty of room.
• Consider the accessibility, appearance, and amenities of a neighborhood as well as plans for development.
• A lot's proximity to things like busy roadways and community centers may make it less desirable for resale.
• Acreage often trumps the quality of a house since land tends to increase in value.

NEW DELHI: The dynamics of the real estate sector and its stakeholders witnessed a significant impact due to the covid-19 pandemic; however, the industry experts expects that the upcoming Union Budget 2021 would pave the way for opportunity and recovery. Both the developers and buyers hope that the Budget 2021 will introduce reforms like tax sops and correction in prices which will further benefit and stabilise the industry. Following are the various measure industry expects:

Circle rates

For the real estate sector the 20% deviation from the circle rates announced by the finance minister last year until June 2021 for homes costing upto Rs 2 crore, should not be time bound and needs to be extended for all real estate asset classes. The same will allow developers to offload the massive build-up of unsold inventory costing more than Rs 2 crore, says Kaushal Agarwal, chairman, Guardians Real Estate Advisory

Stamp duty for land purchase in affordable housing should be reduced or removed for next few years to promote the launch of such homes" says Pradeep Aggarwal, founder & chairman, Signature Global Group.

GST

The industry has been requesting for a GST removal on under construction homes to bring it on parity with ready homes which have no GST levy, says Amit Goyal, CEO, India Sotheby’s International Realty. Ashok Mohanani, president, NAREDCO Maharashtra on the other hand look forward to re-introduction of GST with input tax credit on under-construction properties which will generate the demand among homebuyers.

The government may accede to industry’s demand of allowing set off of GST paid on input materials during the construction phase against rent and other income from property upon completion. The lack of input credit is currently seen as a dual tax levy on asset owning commercial real estate developers that rely on leasing or rentals," adds Vivek Chandy, joint managing partner, J Sagar Associates.

Since the implementation of GST on transfer of development rights (TDR) is being interpreted for application of GST on transfer of right to develop the land. Due to this amendments, most of the projects either residential or commercial has reduced significantly. During this budget if there is a relaxation on GST for joint development transaction on T.D.R, it will be a huge benchmark for developers to take up projects for development," says Bijay Agarwal, MD, Salarpuria Sattva.

Income tax

"On the aspect of housing demand, Section 80 C tax deduction on home loan principal repayment does not provide for a focused benefit on housing. A separate annual deduction of INR 150,000 will provide the much-needed fillip to opt for house purchase," says Shishir Baijal, chairman and MD, Knight Frank India. To boost demand and provide relief to home buyers, we expect tax rebates for them such as a revision of the cap of Rs. 2 lakhs to a substantially higher number on housing loans under section 24(b) of the Income Tax Act. This would result in increased savings and provide a boost in clearing premium stocks. There is also a need for revising the affordable housing cap of Rs. 45 lakhs to a higher number considering the prices of land and construction in metro cities, says Ravindra Pai, MD, Century Real Estate.

Rent

The period of exemption from levy of tax on notional rent, on unsold inventories, needs to be extended to 3-5 years from two after receiving the occupation certificate.

CLSS

"To support the home buyers, we expect the Government to extend Credit Linked Subsidy Scheme (CLSS) of PMAY for middle income group, as well. The sector also demands to extend both, 100 percent tax deduction under section 80 IBA and the additional tax deduction of up to Rs 1.5 lakh for interest payments on housing loans taken for the affordable housing scheme, at least by a year till the market stabilizes," says Murali Malayappan, chairman and MD, Shriram Properties.

"The deadline for the credit linked subsidy scheme (CLSS) should be extended by two years up to 31st March 2023. Additionally, given the relatively higher house prices in major cities, the upfront amount of the CLSS subsidy should be increased to INR 3.5 lakhs (from the current level of Rs 2.3-2.67 lakhs depending on the income category) with corresponding enhancement in income criteria which shall make the subsidy amount more significant in comparison to the house value," says Baijal.

REIT

The budget should also promote greater uptake of new efficiency measures, such as the use of contract saving schemes or Real Estate Investment Trusts (REITs), which will increase the viability of housing schemes across the nation and unlock new investment opportunities, says Nimish Gupta, managing director (South Asia), RICS. For REIT, the government should reduce the timelines of investment from three years to one year for long-term capital gains taxation; thereby ensuring larger retail investor participation and easing a long-term funding challenge for such projects," says Baijal.

Stress fund

The government may also make provisions for direct infusion of funds in the sector through existing channels like SWAMIH funds. Also another fund as SWAMIH funds-II should be launched which should be state centric and where in state institutions can contribute 50% of capital. This should have the regional offices in respective states to fund only to projects in Tier 2 & 3 cities which are untouched till date, under current fund," says Pradeep Misra, CMD, REPL.

We urge the government to offer a special package with a mid to long term horizon for the real estate sector to recover and embark on a sustainable growth path. This package should consider not only affordable and mid segment housing, but also other asset classes such as commercial offices, SEZs, IT parks, industrial parks, warehousing & logistics parks, and organised retail developments, amongst others because the sector is an ecosystem that thrives on cohesivity. Sankey Prasad, chairman & MD at Colliers International India

Affordable housing

Technology import (like aluminum shuttering used in AFW) for construction of affordable housing from other countries should be free from custom duty. Also, GST on material and services used in affordable housing should be reduced to 50% or brought to single digit, says Pradeep Aggarwal.

Building material cost

A reduction in the GST on building materials from the current 18% to 5% will be a game-changer, says Ashish R Puravankara, managing director, Puravankara.

Cement which is a vital raw material for infrastructure and real-estate currently attracts GST of 28% which is the rate at which luxury items are taxed. A reduction in GST for cement would be a welcome announcement for the sector, says Pavitra Shankar, executive director, Brigade Enterprises.

Tiles industry

The current GST rate of 18% is way more than the desired 12% - a request which the government can consider. The government should also consider including Natural Gas under the tax regime, which at this point, is not considered for inclusion. Natural gas is approximately 18–20% of the total cost and is one of the cleanest sources of fuels, says Himanshu Jindal, CFO, Orientbell Tiles.

What real estate gained in Union Budget 2021?

Here is what real estate gained in Union Budget 2021 presented by Finance Minister Nirmala Sitharaman on February 1.

This government sees ‘Housing for All’ and affordable housing as priority areas, said Finance Minister Nirmala Sitharaman while presenting Union Budget 2021-22. Real estate sector had high expectation from the Budget 2021, especially post the Covid-19 pandemic.

Ministry of Housing and Urban Affairs has been granted Rs 54,581 crore in the Budget 2021.

Here is what real estate gained in Union Budget 2021:

Increase in safe harbor limit for primary sale of residential units

In order to incentivise home buyers and real estate developers, it is proposed to increase safe harbour limit from 10% to 20% for the specified primary sale of residential units

Affordable Housing

In the July 2019 Budget, the government provided an additional deduction of interest, amounting to Rs 1.5 lakh, for loan taken to purchase an affordable house.

FM proposed to extend the eligibility of this deduction by one more year, to March 31, 2022. The additional deduction of Rs 1.5 lakh shall therefore be available for loans taken up till March 31, 2022, for the purchase of an affordable house.

Further, to keep up the supply of affordable houses, FM proposed that affordable housing projects can avail a tax holiday for one more year – till March 31, 2022.

To promote supply of Affordable Rental Housing for migrant workers, Sitharaman proposed to allow tax exemption for notified Affordable Rental Housing Projects.

REITs

Debt Financing of InVITs and REITs by Foreign Portfolio Investors will be enabled by making suitable amendments in the relevant legislations. This will further ease access of finance to InVITS and REITs thus augmenting funds for infrastructure and real estate sectors.

In the previous Budget, the government had abolished the Dividend Distribution Tax (DDT) in order to incentivise investment. Dividend was made taxable in the hands of shareholders. Now, in order to provide ease of compliance, FM proposed to make dividend payment to REIT/ InvIT exempt from TDS.

Further, as the amount of dividend income cannot be estimated correctly by the shareholders for paying advance tax, FM proposed to provide that advance tax liability on dividend income shall arise only after the declaration/payment of dividend. Also, for Foreign Portfolio Investors, FM proposed to enable deduction of tax on dividend income at lower treaty rate.

Infrastructure

A total of 702 km of conventional metro is operational and another 1,016 km of metro and RRTS is under construction in 27 cities. Two new technologies i.e., ‘MetroLite’ and ‘MetroNeo’ will be deployed to provide metro rail systems at much lesser cost with same experience, convenience and safety in Tier-2 cities and peripheral areas of Tier-1 cities.

Centre will provide funding to:

• Kochi Metro Railway Phase-II of 11.5 km at a cost of Rs 1,957.05 crore
• Chennai Metro Railway Phase-II of 118.9 km at a cost of Rs 63,246 crore
• Bengaluru Metro Railway Project Phase 2A and 2B of 58.19 km at a cost of Rs 14,788 crore
• Nagpur Metro Rail Project Phase-II and Nashik Metro at a cost of Rs 5,976 crore and Rs 2,092 crore respectively

Infrastructure needs long term debt financing. A professionally managed Development Financial Institution is necessary to act as a provider, enabler and catalyst for infrastructure financing. Accordingly, FM will introduce a Bill to set up a DFI. Sitharaman provided a sum of Rs 20,000 crore to capitalise this institution. The ambition is to have a lending portfolio of at least Rs 5 lakh crore for this DFI in three years time.

Stressed Asset Resolution

The high level of provisioning by public sector banks of their stressed assets calls for measures to clean up the bank books. An Asset Reconstruction Company and Asset Management Company would be set up to consolidate and take over the existing stressed debt and then manage and dispose of the assets to Alternate Investment Funds and other potential investors for eventual value realization.

To ensure faster resolution of cases, NCLT framework will be strengthened, e-Courts system shall be implemented and alternate methods of debt resolution and special framework for MSMEs shall be introduced.

LED Lights

Custom duty has been increased on inputs and parts of LED lights or fixtures including LED Lamps from 7.5% to 10% and on solar lanterns or solar lamps from 5% to 15%

Construction workers

To further extend our efforts towards the unorganised labour force migrant workers particularly, FM proposed to launch a portal that will collect relevant information on gig, building, and construction-workers among others. This will help formulate Health, Housing, Skill, Insurance, Credit, and food schemes for migrant workers.

10 things you must check before buying property

1. APPROVAL AND LICENCES: Once you zero in on the property, check the builder's paperwork ranging from commencement certificate for work, environmental clearance and approved building plans. Also ask for the status of the land title and see if the builder has bought the land or has just development rights for it. Here is a list of documents you should check.            

   (a). Title Deed: Check whether the builder has a right over the property. While buying a plot, see the title deed of the land to confirm if the builder has the full right to it. You can also take help from a lawyer to get the deed examined. Divakar Vijayasarathy, Co-founder, MeetUrPro.com, says, "A mere NOC (no-objection certificate) from the panchayat or the local body does not constitute approval by the authority." 

   (b). Release Certificate :  If you are buying a property in resale, remember that it may have been pledged to get a bank loan. In such a case, you will have to get a release certificate from the bank, which will prove that the loan on the land has been repaid. Check Encumbrance Certificate: It is also important to verify that the land is free from all legal dues.                                                                                                                                                           

   (c). Verify land use : Verify the land-use zone as per the city master plan for the plot. You can get the plan from the local body office in your respective city.                                                        

   (d). Approvals by Local Body : Make sure that the entire layout has been approved by the development corporation and the local body of the city.                                                                      

   (e). Property Tax Receipts: If you are buying a property in resale, ask for previous property tax receipts from the seller along with other bills. This way you can ensure there are no pending bills.

2. LIST OF BANKS FINANCING THE PROJECT: With real estate companies sitting on unsold inventory and not having enough cash to complete their projects, banks have become very financing them. There are many builders which do not get bank loans at all. So, once you finalise the property and confirm that all approvals are in place, find out banks which are ready to fund the project and go with the one offering you loan at the lowest rate.

3. CALCULATE THE TOTAL COST: Do not go by what the broker tells you. Many times brokers just mention the basic cost and not other factors such as internal/external development fees, preferential location charges, parking/club/statutory charges, and service tax, which escalate the total cost. Ask for the final cost of the property.

4. VERIFY THE BUILDER: The piece of land in question may be under litigation. Hence, it is recommended that you do an extensive verification of the builder. You could verify its past or current projects or even post queries on the various online real estate forums.

5. BUY VS RENT: Many people buy a property thinking they will use rent to pay EMIs. Experts say it is a wrong approach. Surabhi says, "Do not over-leverage in hope that rental income will pay for the EMI. The rental yield on residential properties is generally only 2-3 per cent." Moreover, the property may remain vacant for months before you can find a tenant.

6. THE RIGHT PLAN: There are various payment options available in the market such as down-payment plan, flexi-payment plan, construction-linked plan and possession-linked plan. Experts say one must choose carefully, as generally there is a cost for every convenience. For example, in subvention schemes, the price is at least 10 per cent higher than what is charged under regular schemes. Customers must also understand that any late payment or default on the part of the builder in such schemes will impact their credit history. Then, there are guaranteed rental schemes under which the developer either pays you rent for a fixed period during construction or for a certain period after possession. In the first scheme, the buyer gets regular payments from the developer during the construction of the house, which helps him offset a part of EMI or rent costs. In the latter scheme, generally for properties which are outside city limits, the developer offers rental income after possession. But the fine print is that there is no guarantee.

7. SIZE OF THE APARTMENT: Builders generally mention super built-up area in brochures. This includes common areas such as staircase, lobby, etc. The carpet area of the flat could actually be 30 per cent less than the super built-up area. For example, a two-BHK 1,000 square feet flat could actually be just 700-750 square feet. It is advisable to always go by the carpet area, the area enclosed within walls. Divakar says, " If you are looking to buy a plot for living at a later stage, it is advisable to first understand your requirement. Ensure that you check how much land (built-up area) you will need to build your dream home. Topography and soil are the other vital factors."

8. CHECK THE INFRASTRUCTURE PLANS: Metro connectivity or any other big infrastructure development in future linked to the location of the property you intend to purchase can boost the return on investment tremendously. Also, ensure that the property is not close to any polluting industry.

9. CHECK THE SITE: The layout in the brochure could be different from the reality. So, do a thorough site visit before booking the property. Interact with people in the neighbourhood as they may know about any illegal occupation or other legal disputes related to the property.

10. REGISTER YOUR PLOT: After selecting the property, you have to register it with the authority concerned for you to become its lawful owner. Surabhi says, "Through registration of sale deed, a person is able to acquire the rights of the property from the date of the execution of the deed."Last, but not the least, do some research about the developer's record in terms of total square feet developed, market feedback and project delays. Also, check the quality of its previous projects. Divakar says, "Be sure to search for any contingencies which may hinder the development of the property. For this, you can probably refer to or participate in various online real estate forums.

Few Reasons Why You Need A Real Estate Agent
Your search for selling, renting or buying a property might feel exciting in starting but can
really turn into a nightmare if the things don’t go the way you’ve planned. Your unplanned
hunt can ruthlessly sap you of your time, energy or money leaving you discouraged. During
this challenging time, you may realize how difficult it can be to sell, rent or buy a property
and pray for some miracle to happen.
You need not undergo any nonessential pain or wait for any miracle, instead contact a right
person to help you out: A Real Estate Agent! When it is about selling, renting or buying some
property, a real estate agent can benefit you in many ways, saving you both, time and
money. Whether you are a buyer, seller or renter, wouldn’t it be beneficial to make a real
estate agent a part of your hunt? Know what an agent can do for you.
 
Can Avail You Desiring Options in sufficient time
A good real estate agent is skillful and carries adequate knowledge of the real estate market.
They can guide you about housing prices, council fees, demographics, schools, public
transportation and parks. There are also well-researched agents who can help you better
than other average agents, providing you different options in sufficient time. Choose an
agent as per your convenience as average agents can also do well.
 
Can Help You Frame The Right Pricing Decision
A real estate agent won’t dominate your decisions of setting up prices, but they will make
their suggestions as per the hidden prices, facts and figures so that you can come up with a
reasonable price. They will inform you about the current market demands and supplies,
regional status and history. With this knowledge, you’ll find yourself confident enough to sell
or buy a property at a great price and earn profit.
 
Can Efficiently Promote Or Market
A real estate agent advises you on how you can rent, sell or buy a property in a short span
of time. They also suggest adopting advertising and marketing to help you meet your
desiring results. Marketing plans can involve marketing through numerous channels. You are
advised to have a look at the marketing strategies which each individual agent can follow
differently. A good real estate agent uses marketing strategies in effective ways.
 
Answers Customer-Queries Before And After The Deal
If you get any query before, at or after signing the contract, the real estate agent will be
ready to answer you. Answering to customer-queries is an important part of their job, which
they can’t afford to overlook. So, they try their best to satiate your curious or perplexed mind
as well as possible, as they know the value of customer satisfaction.
 
Carefully Deals With The Paperwork
Selling & Buying of Property goes through the legal formalities of paperwork and registration.
It’s a job of a real estate agent to carefully go through the documents and handle the
administrative responsibilities of a sale. While going through your documents they make sure
that they don’t fail to notice any important detail. This saves you time, and also from the
troublesome paperwork.
 
Conclusion
While leaving your workplace after a hectic day, you suddenly remind yourself that you have
to find a seller or buyer for some property. Now arises a conflict as one voice in your mind
says, “You’ve got very tired today, why not do it tomorrow?” and the other voice says, “No
chance, you know it’s urgent”. You know what a real estate agent can end this conflict. You
simply need to contact them.

Delhi government notifies 20% reduced circle rates for land & immovable properties

The Lt. Governor of the National Capital Territory of Delhi notified the relaxation in the minimum rates (circle rates) for valuation of lands and immovable properties in Delhi on Friday.

NEW DELHI: The Delhi government has notified the 20 per cent reduced circle rates for land and immovable properties to boost transactions in real estate.

Recently, Mumbai had cut stamp duty rates which led to a massive increase in people buying and selling properties.

The Lt. Governor of the National Capital Territory of Delhi notified the relaxation in the minimum rates (circle rates) for valuation of lands and immovable properties in Delhi on Friday.

As per the notification, the new rates will come into force without previous publication. The above rates will be taken into consideration for registration of instruments relating to lands and immovable properties in Delhi by all the Registering Authorities under the provisions of the Indian Stamp Act, 1899 (2 of 1899) and the Indian Registration Act, 1908 (XVI of 1908) as in force in Delhi at the time of registration of instruments.

These revised rates shall come into force with immediate effect till September 30.

The circles rates has been reduced for residential, commercial, industrial and other properties in Delhi by 20% for the next six months.

A reduction of 20% in the circle rate would have an impact close to reduction by 1% in the stamp duty or registration charges.

The revised rates will be applicable till September 30 this year. The reduction in circle rates will help people in substantially cheaper property transactions and revive the real estate sector that has witnessed slump due to the unprecedented Covid-19 pandemic.

Institutional investments in Indian real estate to increase by 14.6% in 2021: Report

Commercial office assets accounted for over 55% of total Indian real estate inflows between 2018 and 2020, showing the higher appetite of investors.

NEW DELHI: Institutional investments in Indian realestate will grow by 14.6% to Rs 396 billion from Rs 346 billion in 2020, according to a recent report by Colliers International India . Institutional investments in 2020 had witnessed a drop of 23% from 2019.

"The investment climate in India is very buoyant with global investors’ interest in real assets getting stronger. With global interest rates at historic lows and positive net yields in India, the country has emerged among the preferred destinations for investments in real estate," said Piyush Gupta, managing director, Capital Markets & Investment Services (India) of the company.

Commercial  office assets accounted for over 55% of total Indian real estate inflows between 2018 and 2020, showing the higher appetite of investors. Between 2018 and 2020, an average annual supply of over 35 million sq ft entered the top six Indian cities ie. Benguluru , Chennai, Delhi NCR, Hyderabad, Mumbai  and Pune, with the majority being snapped up by institutional investors.

Even though a similar level of supply is set to enter the market, some investment firms are increasingly looking towards developing their own greenfield office assets. Investors remain bullish on the long-term prospects even as they target an internal rate of return (IRR) of about 17-18%.

"Whilst 2021 may be a year of consolidation and portfolio optimization for occupiers of commercial offices, they will return to growth as confidence in economy increases vis-à-vis the roll-out of COVID-10 vaccines," said Siddhart Goel, senior director & head (Research) of the company.

Property Documents To Check Before Buying A Flat

Before you buy a property, you must check all property documents to make sure that you buy a genuine property. The documents that need to be checked are different for under construction and ready to move properties. Here is a list of all property documents to check before buying a flat or plot.

Under Construction Property

At the time of Booking

1. Land Records

When you want to book a new property, ensure that the builder owns the land where he is proposing the project. Land Records give details about ownership, rights, obligations and mortgages of the property. You can check land records with the Survey Nos. Nowadays, land records for most states are made available online. For more details, check out Land Records Guide.

2. Land Use Certificate

Before developing any property, a builder needs a Land Use Certificate or Change of Land Use (CLU) certificate from the urban authority. Residential projects cannot be built in a commercial or industrial zone or on agricultural land. You can ask the builder to produce a copy of the Land Use or CLU Certificate.

3. Layout Approvals

Many builders sell properties under soft launch without getting layout and building approvals. They will tell you that rates will go up significantly once all approvals are received. But never fall into this trap as approvals may not come anytime soon and you can get stuck for a long time. You should never invest in a project which has not received approvals. If any builder avoids showing you the copy of approved layout, you should refrain from investing in such project.

4. Master Plan

Builders and property consultants will often show you upcoming infrastructure projects like Airport, Metro, Expressway, SEZ etc. on the brochure. Again a word of caution here. A news item should never be the basis of such claims. You can cross check these with the approved Master Plan of the city. In the Master Plan, you can also check whether the project falls into a residential zone or not. Check out Master Plans of Indian Cities.

5. No Objection Certificates & Clearances

The builder needs to obtain clearances from Electricity, Water, Fire and Safety authorities and environment clearance etc. Make sure that the builder has received all clearances.

6. Certificate of Commencement

A Certificate of Commencement, given by the Town Planning Department, is mandatory to commence any construction of a property. This certificate is given only once all other approvals and clearances are obtained by the builder.

7. Allotment Letter

Once you give the booking amount, the builder will sign an allotment letter with you. It will mention payment plans and other important agreement clauses. Before you handover a booking amount cheque, make sure that payment plan and other clauses are clear to you. You should ensure that there is a penalty clause for any delay in possession.

8. Builder-Buyer Agreement

Once you pay 20-30% of the basic cost of property, the developer will signBuilder-Buyer Agreement with you. This will be a detailed agreement that will have a layout plan, detailed specifications & features of the property. It will mention the possession time & penalty amount in case of delay. Make sure that you go through the agreement completely before you sign on it. After Construction

9. Completion Certificate

Completion certificate is issued by Municipal Corporation once the project is completed as per the approved layout plan.

10. Occupancy Certificate

Occupation Certificate is also issued by Municipal Corporation after ensuring that basic amenities like Electricity Connection, Water Supply, Sewage Connection etc. are provided as per the approved plan. Before you are handed over possession, make sure that the builder has received a Completion Certificate and Occupancy Certificate.

At the time of Possession

11. Sale Deed Registration

Once the project is complete in all respects and has received Completion and Occupancy Certificates, the Builder will transfer the property in your name by executing a Sale Deed that will be registered at the Registrar’s office. Sale Deed is the main ownership document and you should keep it safely. In case you have taken a home loan, the original copy of the Sale Deed will be handed over to the Bank till the time you retire your complete loan.

12. Possession Certificate

Once, a Sale Deed is registered in your name, the builder will give you a possession certificate after handing over physical possession of the property.

SBI reduces home loan rates to 6.70%

The bank said the home loan interest rates will start from 6.70 per cent for loans up to Rs 75 lakh and 6.75 per cent for loans in the range of Rs 75 lakh-Rs 5 crore.

MUMBAI: The country's largest lender State Bank of India on Monday said it has reduced interest rates on home loans by up to 10 basis points (bps) and is offering loans starting from 6.70 per cent rate. The new rates are based on loan amount and CIBIL score of the borrower, and are available till March 31, 2021, according to a statement.

The bank said the home loan interest rates will start from 6.70 per cent for loans up to Rs 75 lakh and 6.75 per cent for loans in the range of Rs 75 lakh-Rs 5 crore.

The bank's Deputy Managing Director (Retail Business) Saloni Narayan said, "We want to take advantage of the festive season, especially Holi. This being the last month of the year, we are looking at a good number."

The lender is also giving a 100 per cent waiver on processing fees.

Customers can also apply for home loans using Yono app to get an additional interest concession of 5 bps, the bank said.

It is also offering a special 5 bps concession to woman borrowers on the eve of International Women's Day.

Narayan said the bank does not see much challenge in terms of repayments in the home loan segment.

"We are mindful of whatever stresses are there and we are reaching out to the customers.

"We are taking several steps within and outside the bank and also giving options to borrowers on how they can repay the loans. We are monitoring closely and, as of now, I don't see much of a challenge," she said.

The lender's gross non-performing assets in the home loan segment is 0.67-0.68 per cent, its Chairman Dinesh Khara had said last month.

Things to keep in mind while taking a home loan

With the prices of houses skyrocketing, it's common to seek home loan from banks and financial institutions. Due to the falling interest rates, home loans are now available cheaper. The process of online applications has made approvals and disbursals fast. However, you get an approval for a home loan only after banks go through your credit history and check your borrowing potential.

If you are planning to take a home loan, here are a few things you must keep in mind:

Legality of the property

Before you lay your hands on a property, make sure the builder is reputed and all papers of the property are in place. With RERA implemented across regions, you can check the builder's profile online on the RERA website. Banks often refuse to give loans if the builder is not in its approval list.

Down Payments 

You must have a budget chalked out before you start looking for a house. Calculate the down payment you would have to pay. It is usually about 20% of the value of the property. You can choose to pay more from your pocket if you can afford.

You must save up for the down payment. In case, there is a deficit, you have take soft loan from your employer, family and friends. Try to minimise the borrowing amount to reduce the interest outgo.

Once you have taken a loan, the outstanding balance liability falls on your family's shoulders in your absence. You can avoid this financial burden on your family by buying a mortgage redemption insurance cover while taking home loan. It is a decreasing term plan where the cover amount decreases as you repay the loan.

 Check your eligibility criteria

Home loan lenders have a list of eligibility criterion and only if you happen to meet those, you are considered a potential borrower. Banks typically look at your credit history to understand your repayment habits and prefer a credit score of 750 for lending out. Your age, income, occupation, collateral security, margin requirements, etc are also important factors when it comes to determining the interest on the loan.

Check the fees and charges associated with the loan

Home loans come with associated fees and charges. Processing fee is the most common fee payable at the time of application. Check if the fee is reasonable when you choose a lender.

Check the interest rate

The interest rate on loans is a determining factor in deciding where to take your loan from. Lower the rate, lower would be the EMI outgo. Home loans are offered at fixed interest rates and floating interest rates. While fixed interest rates remain the same through the loan duration, floating rates change with bank's changing lending practices. Weigh your options before you zero in on a loan.

Check your affordability of paying EMIs

Customers often take up a lot of burden when it comes to paying EMI thinking that it would get easier with time, as their income would increase eventually. Consider the possibilities of not getting a raise soon or other unforeseen circumstances. You should look at a loan to income ratio of 20% to 30%. You can make changes in the tenure to reduce or increase the EMI amount depending on your affordability.

Buy an insurance plan to cover the loan amount

Once you have taken a loan, the outstanding balance liability falls on your family's shoulders in your absence. You can avoid this financial burden on your family by buying a mortgage redemption insurance cover while taking home loan. It is a decreasing term plan where the cover amount decreases as you repay the loan.

Shop around

There are hundreds of banks and financial institutions which offer home loans at attractive interest rates. Before buying a home loan, go online and compare the interest rates and charge structure of all available home loans. Comparing would let you choose a loan which not only has the most reasonable interest rate but also limited fees and charges.

Relief for real estate sector as Goa CM cuts infrastructure tax

The chief minister also said that it proposes to extent the online building plan approval management system for multi-family dwellings, commercial buildings and industrial buildings in a phased manner.

PORVORIM: In a move that is likely to breathe life into the real estate sector, chief minister Pramod Sawant on Wednesday announced that the infrastructure tax levied on the construction sector would be reduced by 30% for a period of six months from April 1.

“The issue of incidence of double-taxation in stamp duty and registration fees will be streamlined to avoid financial hardships to the housing construction sector,” said Sawant. Sawant also promised to bring in “major reforms” in the functioning of planning and development authorities.

The chief minister also said that it proposes to extent the online building plan approval management system for multi-family dwellings, commercial buildings and industrial buildings in a phased manner.

“We are happy that our representations to the government are met with a positive response. The steps underlined by the chief minister in the budget speech will certainly boost the morale of our sector,” said Credai president Nilesh Salkar.

Sawant also said that notary architects and notary engineers will be empanelled to undertake third party certification of low risk projects. “This certification by professionals will be considered valid by TCP for issuing of technical clearance and completion orders.

The TCP department will also introduce rules and strategies to implement transferable development rights provisions for acquiring much-needed land fees, public projects and to conserve heritage structures, said Sawant.

Price difference between completed, under-construction flats narrows to 3-5%: Report

In the national capital region (NCR), the average price of completed units is Rs 4,650 per sq ft, while under-construction flats cost Rs 4,500 per sq ft.

NEW DELHI: The price difference between completed apartments and under-construction flats has narrowed down to 3-5 per cent as against 9-12 per cent in the calendar year 2017, as prospective homebuyers' preference is shifting towards ready-to-move-in units due to risk factor, according to Anarock.

According to a report by Anarock, one of the leading property consultant in India, the average price of ready-to-move-in units is higher by 3-5 per cent across seven major cities in comparison with the under-construction residential properties.

In the national capital region (NCR), the average price of completed units is Rs 4,650 per sq ft, while under-construction flats cost Rs 4,500 per sq ft.

The average price of ready flats in Kolkata is Rs 4,465 per sq ft, up 4 per cent from Rs 4,300 per sq ft for under-construction units.

In the Mumbai Metropolitan Region (MMR), the average prices of completed and under-construction flats are Rs 10,700 and Rs 10,350 per sq ft, respectively.

The average rate of ready apartments in Pune is Rs 5,650 per sq ft, up 5 per cent from Rs 5,360 per sq ft for units under construction.

In Hyderabad also, the price difference is 5 per cent. The average rates of completed and under-construction apartments are Rs 4,290 and Rs 4,075 per sq ft, respectively.

The average rate of ready-to-move-in flats in Chennai is Rs 5,000, while under-construction units cost Rs 4,775 per sq ft.

In Bengaluru, the average prices of finished and under-construction inventories are Rs 5,130 and Rs 4,910 per sq ft.

Anarock Chairman Anuj Puri said, "Previously, buyers of under-construction homes had one major advantage. Their patience and willingness to court construction risk were rewarded by notably lower prices."

However, he pointed out that prospective homebuyers have become risk averse due to construction delays and stalled projects and now, demand has tilted heavily towards ready properties.

Moreover, Puri said completed homes do not attract GST has been an added attraction.

"...Even the price gap between ready-to-move and under-construction homes has eroded substantially, from 9-12 per cent in 2017 to just 3-5 per cent by January-March quarter 2021," he said.

Anarock said the narrow price gap works well for end-users as well as investors.

End-users can see what they buy and save rent by moving in immediately, while investors focused on steady rentals can start earning right away.

In the past four years, developers have been reluctant to increase the prices of ready homes as they need to clear their inventory.

As per the data, the MMR has seen the highest reduction in the gap over the last four years. In 2017, the gap between completed and under construction homes in MMR was 12 per cent but the same has reduced to just 3 per cent now.

In Bengaluru, the price gap was 12 per cent in 2017 but now, it has shrunk to 4 per cent.

Similarly, in Pune, the price gap in 2017 stood at 12 per cent, while in the first quarter of 2021, it has reduced to 5 per cent.

In NCR, the price gap in 2017 was 9 per cent and now, it is just 3 per cent.

Anarock data showed that the price gap in Hyderabad has come down from 10 per cent in 2017 to 5 per cent in January-March 2020.

In Chennai, the price gap in 2017 was 9 per cent and now, it has come down to 5 per cent. The rate difference between the two categories in Kolkata reduced from 10 per cent in 2017 to 4 per cent in Q1 2021.

Mumbai-based Anarock clocked an 18 per cent growth in its revenue at Rs 302 crore in the last financial year despite the COVID-19 pandemic, Puri told in an interview on April 11.

The consultant sold 14,700 units worth Rs 16,240 crore on behalf of developers in the financial year 2021, he had said.

Anarock, which was founded in April 2017, has offices in major Indian cities and two offices in the UAE to tap non-resident Indians looking to buy real estate in India.

Apart from housing brokerage, Anarock is into capital market advisory, leasing of retail space, sale of office properties, consulting business and digital real estate solutions.

Rising construction cost to push up real estate prices

By Sobia Khan ET Bureau Last Updated: Mar 29, 2022, 09:47 AM IST
Synopsis - Over the last one year, developers’ average cost of construction has risen 10-12%, owing to higher input cost due to supply-side constraints. This surge in cost comes at a time when developers have been under pressure due to higher debt and liquidity concerns over the last few years.

The rising cost of construction is likely to push up real estate prices across real estate assets classes, dampening the recovery.

Over the last year, developers’ average cost of construction has risen 10-12%, owing to higher input costs due to supply-side constraints. This surge in cost comes at a time when developers have been under pressure due to higher debt and liquidity concerns over the last few years.
 

The cost of key materials like cement and steel has risen over 20% yearly as of March 2022. These constitute a predominant share of the total cost of construction. So far, developers have been cautious about increasing prices as the market was recovering from the aftermath of Covid-19. However, developers have now started feeling the pinch of rising costs and started reviewing their pricing strategy, mentioned Colliers.
 

“With rising material cost, developers will be compelled to increase prices as construction materials account for about 2/3 ^rd share in the total cost of construction. Developers have already been operating on thin margins over the last few years. The rising cost will impact developers in the affordable and mid-market segments relatively more as they are already operating on lower margins. With wholesale price inflation (WPI) and material cost, both seeing a double-digit rise, the cost of construction can rise by a further 8-9% by December 2022,” said Ramesh Nair, CEO, India & Managing Director, Market Development, Asia, and Colliers.
 

Residential projects in the affordable and mid-income segments carry relatively lower margins and are price sensitive. Hence, any major increase in input cost can put pressure on developers to pass it on to end-users. On the other hand, Grade A industrial and warehousing facilities are already seeing robust demand from E-commerce players. An increase in construction cost is likely to put upward pressure on rents due to the limited availability of quality assets, the firm said.
 

“Developers are facing high costs but are being cautious to increase the price for end-users as it might impact overall demand. However, if the escalated cost persists, developers may have to pass on increased overheads to the end-users. Some intervention from the government in the form of lower import duty can provide some relief to developers, especially in segments with low margins,” said Argenio Antao, Chief Operating Officer, and Colliers India.

Overall, in the market, large Grade A developers will be able to withstand the rise in cost and may pass it on depending on the demand dynamics. However, smaller developers may seek to enter joint development agreements for specific projects to tide through the high cost.
 

Dwarka Expressway is a hot property destination for property purchasers and investors because of its strategic location, excellent connectivity, and excellent physical and social infrastructure.

March 10, 2022 6:30:43 pm

Gurgaon and the real estate industry in Delhi-NCR are about to undergo a profound transformation with the completion of Dwarka Expressway on August 15, 2022, which had over the years gained popularity as a high demand real estate corridor in NCR and Gurgaon in particular

Nitin Gadkari, Union Transport and Highways Minister, announced last year that the long-awaited Dwarka Eway project will be completed on Independence Day in 2022. An elevated road measuring 29 km between Shiv Murti (Delhi) and Kherki Daula Toll (Gurgaon) on NH8 is the world’s longest elevated road (23 km). An 18.9 km segment of it falls in Gurgaon, and it has been designed as an 8-lane grade separated road. There are also three-lane service roads on each side of the highway, along with four multi-level interchanges and crossroad underpasses at major intersections.

In recent years, Dwarka Expressway has become the most prestigious and affluent locality in Gurgaon. Various high quality developments by prominent developers have made this area more upscale. As such, this high profile locality of Gurgaon is a hot favorite with those looking for affordable, mid-priced, premium or luxury homes. The development of this high potential area is being undertaken by renowned developers such as Tata, Godrej, Sobha, Shapoorji Pallonji, Signature Global, Hero Group, ATS, and Puri Constructions. As of now, the area in Dwarka Expressway is quite livable with well over a lakh people living in a number of group housing societies across several complexes in various sectors. For those seeking home ownership, there is a good selection of 2,3,4 BHK homes in a wide range of prices. In addition to large under construction inventory, buyers can select ready-to-move homes from a selection of high rise apartments in gated community complexes or plotted housing developments.

There are a number of affordable homes for sale on the Dwarka Expressway. They can be purchased under the Haryana government’s affordable housing scheme through Pradhan Mantri Awas Yojana (PMAY), wherein home buyers can avail interest subsidy. Lifestyle homes that are affordable yet provide the best of amenities like community center, daycare facility, landscaped garden, children’s play area, jogging track, 24-hour power and water supply, and convenient shopping within the community along with free maintenance for 5 years.

Dwarka Expressway is a hot property destination for property purchasers and investors because of its strategic location, excellent connectivity, and excellent physical and social infrastructure. It is in close proximity to both the Railway Station and the upcoming Interstate Bus Station. A mere 20 minutes’ drive away from IGIA, it has easy access to the Delhi Metro via Huda City Centre Metro Station. The proximity of major expressways such as NH8, KMP, NPR give it an added advantage of accessibility. A number of top-of-the-line medical facilities are located near the Dwarka Expressway. AIIMS Jhajjar is just about 20 km from the expressway. Haryana Chief Minister ML Khattar recently laid the foundation stone of 500-bed super specialty ESIC hospital at Manesar, about 30 minutes away. A 650-bed medical college and hospital is under construction in Sector 102, Gurgaon Metropolitan Development Authority has announced. Spread over 30 acres, it is expected to be operational by 2024.

Recently, Dwarka Expressway has been attracting attention due to several new and significant developments. As part of GMDA’s Comprehensive Mobility Management Plan (CCMP), Dwarka Eway will receive a major boost in connectivity. This will involve the construction of roads connecting Sector 125 / 114 and 108/106, NPR and Sector 114.

In Sector 10 and Dwarka Eway’s neighbourhood, two urban forests are in the process of being built. The GMDA has recently floated tenders for improving Sector 99-115 link road. Using the Japanese Miyawaki technology, these will have green covers that are up to 30 times denser and ten times taller than traditional plantations. This will enhance the space for green living along the Dwarka Expressway. One of the most compelling reasons is Haryana’s Department of Town and Country Planning (DTCP) recently announced it will set up group housing across 2800 acres in old and new Gurgaon, including the sectors 113, 110, 105 and 103 along Dwarka Expressway. MRTS corridor will be intersected with the Metro Extension at Subhash Chowk, ISBT at Sector 10 and Railway Station at Sector 5. Rapid Rail will be intersected with the Metro Extension at Cyber City.

This growing list of developments, along with its likely operationalization in coming months, will make Dwarka Expressway a very promising investment for end-users and investors alike.