The Gurugram real estate regulator fines a developer for running deceptive advertising

The policy is known as the Deen Dayal Awas Yojna (DDJAY) 2016 by the Authority, but the newspaper advertisement captions it as DDJAY 2024, which is “incorrect and misleading.” 

The Real Estate Regulatory Authority (RERA), Gurugram, has fined Yashvi Homes Pvt Ltd Rs 25 lakh for publishing a “misleading advertisement” of a real estate project under the state government scheme, Deen Dayal Jan Awas Yojna (DDJAY) 2016, in a mainstream daily. 

In a suo motu ruling, RERA Gurugram described the advertisement as “completely misleading.” Yashvi Homes is developing Golden Gate Residency, a residential project in Sector 3, Farukhnagar, Gurugram, under the DDJAY scheme. 

The policy is known as the Deen Dayal Awas Yojna (DDJAY) 2016, as per the Authority, but the newspaper advertisement captions it as DDJAY 2024, which is “incorrect and misleading.” 

The Authority stated that the promoter failed to supply the required project registration number and website address.

By Section 11(2) of the RERA Act of 2016, the promoter must prominently display the Authority’s web address in any advertisement or prospectus that it publishes. This website should contain all the information about the registered project that needs to be entered correctly, including the RERA registration number. 

The Authority spokesperson said, “The amenities promised in the advertisement do not correspond with the project’s approved layout plan submitted by the promoter at the time of registration does not include provisions for amenities like a school, clubhouse, swimming pool, badminton court, half basketball court, among others.” 

According to a spokesperson for the Authority, real estate promoters face legal action if they continue to use “misleading advertisements.” 

Examining the Patterns and Forecasts of Bengaluru’s Real Estate Renaissance

Bengaluru saw a 29% increase in housing sales, from 49,480 units in 2022 to 63,980 in 2023.  

Over the past few decades, Bengaluru—often known as India’s Silicon Valley— has seen a remarkable transformation in the residential real estate market. Numerous factors, including better infrastructure, supportive government policies, a rise in the supply of IT professionals, and urbanization, have contributed to this change.

Bengaluru saw a 29% increase in housing sales from 49,480 units in 2022 to 63,980 lots in 2023. Bengaluru’s rise as India’s center of technology lies at the core of the city’s residential real estate boom. However, it is also critical to remember that, in 2023, 23% of the sales momentum came from the premium and mid-market (INR 50-75 lakh) segments, respectively. 

The main rivers of demand were the growing return to work in the IT/ITeS sector, the expansion of global firms already in place, and the establishment of Global Capability Centers (GCCs). Moreover, the excellent supply that renowned developers brought in was a significant factor in the sales increases in many of these cities.  

The city has been a magnet for highly skilled professionals from all over the nation and abroad due to its reputation as an innovation hub, numerous research institutes, start-ups, and multinational corporations. This talent inflow has led to a strong demand for housing, especially near large IT parks and tech campuses, which has sparked a rush of construction activity in these sought-after locations.

Due to its reputation as a livable city that boasts pleasant weather, lush green spaces, and a vibrant cosmopolitan culture, Bengaluru has become even more appealing to prospective homebuyers. The city’s vibrant lifestyle, excellent educational opportunities, and numerous dining options appeal to individuals and families, making it a great place to settle down and raise a family. 

The growth of Bengaluru’s infrastructure has been essential to the city’s residential real estate growth. The city has made significant investments in the road and metro rail systems and other public transportation networks to improve accessibility and connectivity between different micro-markets. The development of satellite townships and growing suburbs that will satisfy the evolving needs and preferences of city dwellers has been made possible by this increased connectivity, which has also expanded the housing options available to residents. 

Government policies and initiatives have also played a significant role in speeding up the real estate boom in Bengaluru. To serve the wide range of socioeconomic strata that constitute a community, initiatives like Housing for All and the Smart City Mission have encouraged developers to invest in affordable housing projects. 

In addition, the Real Estate Regulation and Development Act (RERA) has increased investor and homebuyer confidence by ushering in a new era of transparency and accountability. 

A new paradigm in Bengaluru’s residential real estate market has emerged with the emergence of co-living and co-working spaces, which meet the growing needs of a dynamic workforce. 

The gig economy and flexible work arrangements are becoming increasingly common, which has increased demand for shared living and workspaces aimed toward young professionals and entrepreneurs. 

Developers have quickly capitalized on this trend by providing creative solutions that combine affordable housing with numerous amenities— from wellness centers and community events to high-speed internet connectivity—–redefining what is in a modern urban setting. 

In addition, the proliferation of financing alternatives has democratized homeownership by increasing its accessibility to a broad range of individuals. In addition to offering attractive home loan programs with competitive interest rates, banks, and other financial institutions have also fueled the growth momentum of the real estate industry with the introduction of alternative financing models like peer-to-peer lending and crowdfunding.  

But even amid all the excitement surrounding Bengaluru’s residential real estate boom, it is essential to recognize the difficulties that still lie ahead. There is an immediate need for sustainable urban planning and development in the city because of its issues with traffic congestion, urban sprawl, and environmental degradation. 

Onward, Bengaluru’s comeback in residential real estate is evidence of the city’s tenacity, inventiveness, and vibrancy. The real estate sector is a prime location for investment and growth due to the convergence of progressive policies, infrastructural development, economic dynamism, and changing lifestyle preferences. 

To address problems and seize opportunities as Bengaluru grows and transforms, stakeholders must collaborate in a coordinated manner to move the city toward a more inclusive and sustainable urban future. 

The Real Estate Regulatory Authority (RERA) may soon receive clarification on tax exemptions from the GST Council.

According to an official, the Goods and Services Tax (GST) Council plans to provide clarification shortly that the Real Estate Regulatory Authority (RERA) will not be obliged to pay the GST.  

The official argues that Article 243G of the Constitution, which addresses the responsibilities, authority, and powers of panchayats, applies to RERA, which acts as both a regulator and a facilitator for the real estate sector. 

To safeguard consumer interests, promote transparency in real estate projects, and create a fast-moving dispute resolution process, several states established RERA.

According to the official, it has come to light that RERA employees are exempt from GST due to discussions regarding the nature of their roles. 

The official went on to say that since state governments fund RERAs, charging GST would essentially be taxing those governments. 

The Model Code of Conduct for the general election scheduled for April-May is likely to be imposed following a meeting of the GST Council, which will be presided over by the Union Finance Minister and include state ministers.  

On October 7, 2023, the GST Council met for the last time. 

A specialist claims that before July 18, 2022, several services offered by significant Indian regulatory bodies were GST-exempt. These bodies included the Reserve Bank, the Securities Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority (IRDA), the Food Safety and Standards Authority of India (SSAI), and the Goods and Services Tax (GST) network. 

The removal of this exemption on July 18, 2022, sparked debate about the tax ramifications for RERA organizations.  

“In addition, the Input Tax Credit (ITC) is not applicable in the residential real estate industry. It implies that eliminating RERA authorities from the GST  calculation may result in lower costs for developers and purchasers of real estate. So industry would greatly benefit from an explanation from the GST Council on this issue,” he continued.  

Real estate trends: Why are wealthy Indians purchasing opulent homes before the fiscal year’s end?

Real estate experts estimate that the ticket sizes for this year’s real estate transactions range from less than Rs 10 crore to more than Rs 100 crore. 

There was a surge in the quantity of luxury real estate transactions recorded nationally before the close of the fiscal year. The ticket sizes for these properties range from Rs 10 crore to more than Rs 100 crore. Real estate advisors point out that there are financial considerations in addition to the fear of missing out (FOMO) on the most desirable properties in town due to the limited supply of luxury properties, which is one of the main driving forces behind such decisions. 

According to them, one of the explanations might be that several investors who have profited from the financial markets are booking profits by buying real estate in anticipation of possible election-related volatility. 

The range of ticket sizes, which begin at Rs 10 crore and go up to over Rs 100 crore, is another trend that has come to light. They suggested that this might be because of the Rs 10 crore cap on long-term capital gains reinvestment under Section 54F enacted in the Budget in 2023. 

Here are a few recent high-value deals that happened in Mumbai and Delhi-NCR. 

A 10,000-square-foot apartment at the Cameliias by DLF on upscale Golf Course Road in Gurgaon recently sold for Rs 95 crores.

For Rs 10 crore, Bollywood actor Mrunal Thakur and her father bought two apartments from Kangana Ranaut’s family in Mumbai’s Andheri West neighborhood. 

Earlier this year, eight members of the Halan family—investors in stocks and other asset classes– paid a total of Rs 104 crore for four sea-facing twin apartments in K Raheja Corp’s opulent south Mumbai project. The apartments total 16,000 square feet. 

Vratika Gupta, the creator of the well-known decor brand Maison SIA, paid over Rs 116 crore to purchase an opulent apartment in Mumbai’s Oberoi 360 West. 

Demand for luxury homes is not limited to posh areas of Mumbai or Gurugram but also spreads to suburban locations. Krishna Kuppuswami Dasarakothapalli, known for films such as The Family Man, Stree, and Go Goa Gone, bought a duplex in Mumbai’s Goregaon suburb for Rs 30.50 crore this year. 

According to Anuj Puri, chairman of ANAROCK Group, sales of ultra-luxury homes (worth more than Rs 40 crore each) have experienced an unparalleled surge in CY2023, setting new records for both quantity and quality. According to the most recent data from ANAROCK Research, the total sales value of ultra-luxury homes increased by an astounding 281% in CY2023 compared to CY2022.

He continues, “CY2023 has already made Indian real estate history in ultra-luxury property sales before it is over.” 

Additionally, of the 62 ultra-luxury homes sold in CY2023, at least 12 had prices above Rs 100 crore, compared to just nine in 2022, according to Anarock data. In 2023, fifty opulent residences were sold for amounts between Rs 40 crore and Rs 100 crore. There were only four deals in this price range in 2022. 

He continues, “This demonstrates the country’s current appetite for ultra-luxury homes.” 

According to Amit Goyal, Managing Director of India Sotheby’s International Realty, who spoke with HT Digital, there has been an increase in high-end real estate transactions toward the end of the fiscal year.

Many investors who have profited from the stock market are now real estate investors. After all, the stock market is expected to remain volatile during the elections. 

“That is to say that ticket sizes are smaller than last year after the announcement in Budget 2023 and the changes to Section 54 and 54F went into effect,” he added. 

According to him, a surge of transactions surpassing Rs 100 crores was recorded in March 2023 as an increasing number of wealthy individuals utilized their earnings to acquire real estate before April 1, 2023, when the exemption from long-term capital gains tax for buying residential properties was limited to Rs 10 crores.  

According to Ritesh Mehta, Senior Director and Head of Residential Services & Developer Initiatives, West and North, JLL, several buyers are investing in real estate, the majority of which they intend to use for their use and booking profits from the share market.  

“This is one of the causes of the comparatively small ticket size compared to the prior year. Most of the deals in the previous year were above Rs 90 crores, especially after the long-term capital tax exemption for purchasing residential units at Rs 10 crores. Before the end of the fiscal year, most deals in the premium segment range from Rs 10 crores to more than Rs 100 crores,” he said. 

In the future, he says, “the trend is expected to continue.” 

The real estate fund of Motilal Oswal contributes. First close of Rs 1,250 crore.

Across India’s top 8 cities, IREF VI will strategically concentrate on early-stage investments in mid-income/affordable residential projects. 

The first close of the sixth real estate fund, India Realty Excellence Fund VI (IREF VI), was announced by Motilal Oswal Alternates (MO Alts). Launched with an aim corpus of approximately Rs 2,000 crore, the fund has committed Rs 1,250 crore after its first close. 

MO Alts has made capital investments in the real estate sector through five real estate funds. The company oversees additional stand-alone and in-house real estate investments. As an experienced real estate manager, MO Alts has funded approximately Rs 7,500 crore across 50 Indian developers and completed more than 150 investments. In addition, they have profited from over 20% of their pre-approval wagers. 

The early-stage investments in mid-income/ affordable residential projects in India’s top 8 cities—Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata, and Ahmedabad—will be the primary strategic focus of IREF VI.   

High net-worth individuals, Indian non-residents, family offices, and corporations have raised this fund. The fund is set up as an alternative investment fund (AIF Category II). MO Alts is the name of Motilal Oswal Financial Services Limited’s alternative investment platform. 

In the growth stages of real estate and private equity, MO Alts manages assets worth over $2 billion in aggregate. 

“This marks the largest and fastest first close for our real estate funds to date,” stated  Vishal Tulsyan, MD & CEO, MO Alts. This successful fundraising endeavor amid a rising stock market shows our investors are in our abilities. We are very optimistic about the real estate market and believe it will experience strong growth shortly. We are committed to strengthening our position as the leading capital provider for the real estate sector by taking advantage of as many opportunities as we can in the years to come.” 

“The Indian real estate market has exhibited remarkable resilience and growth in recent years,” stated MO Alts co-head (real estate) Saurabh Rathi. The demand for residential real estate has been exceptionally high, and the office market has exhibited robust absorption as it approaches the pre-pandemic peaks. The need for early-stage capital is more apparent than ever, with sectoral indicators indicating sustained momentum. We are committed to meeting this need by utilizing our solid risk management framework, conservative underwriting procedures, and proven track record.” 

Co-head of MO Alts’ real estate department, Anand Lakhotia, stated, “We are incredibly appreciative of our investors’ continued faith in our investment knowledge, especially those who have previously invested in our funds. We are in an excellent position to take advantage of new opportunities because of the tightening restrictions on banks and NBFCs regarding capital utilization and the positive outlook for the real estate market. Our robust pipeline of investment opportunities in major cities being evaluated at various stages and offering competitive risk-adjusted yields makes the deal flow look extremely promising.” 

Five trends are influencing the residential real estate market in India.

The rapid expansion of the middle class in India is mainly to blame for the significant changes occurring in the Indian real estate market. Development professionals, investors, and potential end users are all very interested in this revolutionary shift, characterized by a sharp increase in population and economic growth. Urbanization, rising incomes, and easier access to education all contribute to this phenomenal growth. 

The Indian residential market is a leading indicator of changing regulations, economic vitality, and societal aspirations due to its novel opportunities and trends. The value of India’s residential real estate market reached an all-time high of Rs.3.47 lakh crores in FY23, representing a strong 48% annual growth. The sales number also showed an upward growth trajectory, increasing by 36% to 379,095 units sold. 

The nation is changing swiftly, and every part of the industry beats in time. The following are the main developments influencing India’s residential real estate market:

  1. Rise of Low-Density Housing: Plotted developments, townhouses, and villas are among the low-density housing options currently in high demand. Low-density housing uses less energy, such as electricity, air, and water, and is similar to small neighborhoods or single-family homes. Long-term residents of this kind of housing are encouraged to lead sustainable lives. Reducing the need for additional infrastructure in neighborhoods by forming them with fewer houses and preserving the land largely intact can help save resources. Buyers are becoming more aware of the benefits of low-density housing. Low-density housing is becoming more popular for people to escape congested urban areas and prioritize privacy, space, and harmony with nature. Developers are introducing carefully planned, low-density projects in response to this trend, emphasizing the value of open spaces, lush greenery, and a feeling of exclusivity. This change reflects a rising desire for well-balanced homes that combine contemporary conveniences with the peace of suburban settings. According to India Sothby’s International Realty’s annual Luxury Outlook Survey 2023, roughly one-third of HNIs and UHNIs are willing to spend over Rs 10 crores on real estate. For instance, Landmark Group sold out of its plots in record time at Landmark Avana, a new low-density housing project in Gurugram, particularly to a younger demographic looking for more space and a better standard of living. 
  1. Technological Integration: By improving comfort, security, and convenience, technology integration is completely changing the residential landscape. Ad IoT devices, home automation systems, and AI-powered assistants biome standard features in smart homes set new standards for futuristic living while providing residents with a seamless living experience. India’s smart home market is expected to generate US$6.5 billion in revenue by 2024. Based on research and markets for smart homes, India ranked third globally in 2020. Furthermore, by 2025, there will be 442 million smart homes in India, an increase over the current number of homes, according to Statista’s Digital Market Outlook for 2021. 
  2. Growing Preference for Owning a Home: The start of the COVID-19 pandemic has caused a significant shift in the way that society views home ownership. Purchasing a home is becoming more and more important to people than renting one. People now recognize the benefits of living in their own space with areas set aside for work, study, and leisure. As a result, people are more conscious of the inherent worth of owning a home since it provides a greater sense of stability and security during uncertain times. Like the pre-COVID housing loan levels, Indian banks advanced housing loans totaling approximately 2 trillion Indian rupees in FY22. As more Indians were investing in residential real estate, this suggested that homebuyer confidence was returning. 
  1. Elegant living: The market focuses on pricey, showy real estate. These upscale residential developments draw discriminating buyers looking for an unmatched quality of life with their first-rate amenities. According to a recent India Sotheby’s International Realty study, the number of affluent people planning to buy luxury real estate in the upcoming years has considerably increased. The luxury real estate market has seen substantial disruption due to growing income levels, deeper technological integration, and evolving consumer preferences brought about by shifting demographics. Millennials are becoming interested in luxury real estate as their incomes rise and their urban lifestyles change. Luxurious properties are in high demand due to the possibility of substantial rental income and a high return on investment. The sales of luxury homes in India increased by 130% in the first half of 2023 compared to the last year. Set to open in Dwarka Expressway, Landmark Group’s new residential project promises to be the ideal residential complex with its endless luxury services and state-of-the-art amenities that are best suited for the changing way of life. 
  1. Tier 2 becomes a powerful force: After the pandemic, many people assessed their living situations and looked for sale houses in their hometowns to feel more stable. The consequence has been an increase in the visibility of Tier 2 cities, which are growing hubs for real estate. The discernible increase in investment activity is causing significant changes in these cities’ real estate markets. With a robust housing market supporting them, Tier 2 cities are rapidly expanding their infrastructure and offering various opportunities for residential and commercial use. Furthermore, the government’s support of cities helps the real estate industry expand. Projects to develop townships and settlements may receive up to 100% FDI approval from the government. Tier 2 cities real estate growth has surpassed Tier 1 cities. For example, at the end of the fiscal year 2021-22, Ahmedabad’s residential real estate market size of INR 83,390 crores exceeded the market sizes of some Tier 1 cities, like Chennai and Kolkata, with INR 52,554 crore and INR 38,440 crore, respectively. This expansion was also apparent in Tier 2 cities like Nashik, Jaipur, Vadodara,  and Gandhinagar. 

The government has increased its efforts to provide affordable housing in response to the recent spike in housing demand, and developers have modified their business plans. The term “affordable housing” describes real estate with prices within the reach of low- and middle-class families. The affordable housing project Landmark the Homes in Sector 81 is anticipated to be completed by December 2024, according to the Landmark Group. One can look into government-funded programs created especially for low-income groups or home loan options from private lenders/NBFCs to purchase affordable housing in India. A commitment of Rs 79,000 crore (US$9.64 billion) for the PM Awas Yojna has been announced in the Union Budget 2023-24, a 66% increase over the previous years.  

Government initiatives such as the Rajiv Awas Yojna and Pradhan Mantri Awas Yojana have encouraged developers to take on projects to offer affordable housing, thereby promoting accessibility and inclusivity in the real estate market. Meeting the demand for 40 million urban housing units is necessary, given that the population is growing at an average annual rate of 2.1% and that a large portion of our population has low purchasing power.

 India’s growing urban population is driving up demand for homes, changing the country’s skylines and city spaces. 

Real estate developers are purchasing more land

Due to the overwhelming demand for homes, real estate developers have accelerated their plans to acquire land. A pattern discovered in 2023 continues this year, with builders going on a land-buying binge, particularly in major cities. However, why are land deals skyrocketing, and which acquisitions are grabbing the news in 2024? Propertywala finds out. 

Industry reports indicate that as real estate tycoons continue their widespread land acquisition binge, real estate will rise by roughly 10-15 percent, reaching nearly 3,00,000 units in 2024. With an emphasis on metropolitan areas, developers have been looking for underserved local markets to cash in on the rising demand for homes. Land deals in well-known Indian cities have significantly increased due to this. The subsequent piece delineates the land-acquisition patterns of builders for the years 2023 and 2024 thus far, in addition to the elements propelling the rapidly increasing demand for housing. 

Large-scale land grabs by real estate developers

Major developers throughout India are seeing an increase in land ownership momentum due to deals involving direct acquisitions and joint ventures. For example, DLF Ltd. recently paid Rs 825 crore to purchase a 29-acre plot in Gurgaon’s Golf Course Extension. The land has 7.5 million square feet of development potential. A 100-crore land deal on Gurgaon’s Golf Course was closed by TREVOC Group concurrently. 

LikewiseJan 25, 2024, Lodha Developer, a company listed as Macrotech, completed the acquisition of a 100% stake in Pune’s Goel Ganga Venture. As for a business-known developer, Gulshan Homz paid Rs 150 crore for a 2.5-acre plot in Sector-129, Noida. In collaboration with regional partners in Uttar Pradesh, Gulshan Homz is also building a residential project in Moradabad. There are plans to build 90 residential units as part of the project. 

Godrej Properties’ recent acquisition of a 4-acre plot of land in Bangalore also helped to start the trend. Godrej anticipates that the project will have a development potential of about Rs 1,000 crore as they look to solidify their position in the Bangalore real estate market. 

Godrej gained attention in the previous fiscal year for its meticulous land acquisitions, adding 18 new land parcels to its list. An approximate revenue potential of Rs 32,000 crore will result from these acquisitions, with a cap of Rs 15,000 crore for 2024. 

Small-time local developers are finding it challenging to acquire land because of the recent development by large developers. Developers, for example, are not happy with the bidding guidelines for a 24-acre land parcel in Bandra, Mumbai, and are criticizing the eligibility and financial requirements. Developers claim that limiting the bidder’s net worth to an astounding Rs 15,000 core will prevent many small developers from participating in the Bandra Reclamation Project. 

Cause of the increase in housing demand 

According to the Confederation of Real Estate Developers’ Associations of India (CREDAI), housing demand needs to reach 93 million by 2036, confirming the longevity of the rising residential sales trend. But given rising living expenses, what might be the motivating factor behind such steadfast demand? 

“Homebuyers’ demand has an increased interest cost environment resulting from elevated inflation, the strong domestic economic fundamentals, and the increasingly aspirational attributes of residential real estate,” says Shishir Baijal, Chairman and Managing Director of Knight Frank India. However, the trend is apparent in the primary residential markets across the country.”  

Significant land purchase initiatives during the previous year  

While land acquisition activity in the first quarter of 2024 got off to a great start, some notable deals occurred in the year prior. Here are a few noteworthy land purchase transactions from 2023: 

  • In Gurgaon, near the Dwarka Expressway, BPTP Developers paid Rs 87 crore for a 5.2-acre land parcel. 
  • Chintels India gave the Sobha Group land parcels close to the Dwarka Expressway for Rs 121.82 crore. 
  • Graphite India sold 1.02 lakh square meters of land to TATA Realty in Bangalore for Rs 986 crore. 
  • Casa Grande paid Rs 56.8 crore to secure a four lakh square foot deal in Hyderabad. 
  • With a land purchase in Gurgaon for Rs 597 crore, Oberoi Realty made its real estate debut in the Delhi NCR area. 
  • Birla Estates purchased a 28-acre plot of land in Sarjapur, Bangalore, for a residential development. 

Trends to watch in land investment 

In light of the current circumstances, industry experts have identified a few prominent investment trends that can help investors and developers make better decisions for the upcoming fiscal years. For example, because large builders are purchasing land parcels for development in and around Tier-1 cities, the focus on these areas is still prevalent. 

However, there is also a ton of investment potential in cities in Tiers 2 and 3. Recent reports claim that builder brands are focusing on the undeveloped markets of Nagpur, Panipat, and Ludhiana. Investor’s first choice is also the Mumbai Metropolitan Region (MMR). Due to their lower initial costs and potential for appreciation, buyers are eager to purchase new properties. 

Developers intend to seize the opportunity while it is still favorable, acknowledging that the current surge in housing demand is here to stay. Industry insiders predict that land acquisition will continue to be popular in 2024, with Tier-1 cities and developing areas continuing to be the hotspots. 

Are you planning to surprise your partner with an apartment on Valentine’s Day?

Present for wife on Valentine’s Day: If you intend to give your partner an opulent apartment this year, ensure your gift deed is registered. 

A whole new apartment for your sweetie on Valentine’s Day? Although the suggestion might seem a little over the top to some, the gift idea might be perfect for wealthy husbands. However, there are a few things wealthy husbands should be aware of before they get too carried away. 

Is the apartment completed or still under construction?

Choose a finished project over one that is still in progress. You can avoid paying 5% in Goods and Services Tax (GST) if you buy an apartment after the occupation certificate is issued.  

Who is going to have to pay taxes?

The wife is exempt from paying taxes on the property that her husband gifts her. When The wife takes control of the replacement of both the cost and the holding period, However, according to Sonu Iyer, partner of People Advisory Services (tax), EY India, any income from the property, such as rental income, can be combined with the husband’s income. 

Gift deeds, stamp duty, and other things you should know 

Giving your wife a piece of real estate is a way to give your spouse financial stability.

“The thing to be kept in mind while making such a transfer is that it has to be effected by way of a written instrument (gift deed) that has been signed by the husband and attested by at least two witnesses,” says Mona Dewan, managing associate at ZEUS Law Associates. 

In addition to registering the gift deed at the subregistrar’s office, there is an upfront stamp duty and registration fee.

A few states have announced stamp duty reductions. For example, if the property passes to the spouse, Haryana offers a stamp duty exemption, according to her. 

If a husband gives his wife a residential or agricultural property in Maharashtra, there is an applicable stamp duty of Rs 200 (Rupees two hundred only). 

The Uttar Pradesh government recently set a maximum stamp duty of Rs 5000 for stamp duty on gifts of residential or agricultural property between husband and wife. 

In Uttar Pradesh, there was a 7% stamp duty on real estate transfers between blood relatives or family members before the reduction took effect. The stamp duty was either 7% of the property’s value or 7% of the circle rate for such immovable property, whichever was higher. 

However, there is a catch if the property is bought with a gift deed and given as a gift by the recipient before the five-year registration period ends. Accordingly, the reduced stamp duty benefit will not be available if the property received through a gift deed is later by the recipient within five years of the registration date, according to Dewan. 

Nevertheless, she notes that there is no such exemption in Delhi and that stamp duty on a gift deed from a husband to wife is equal to 2% of the property’s circle rate value plus any applicable transfer duty assessed by the Municipal Corporation of Delhi and registration fees.  

How would a wife feel about giving her husband an apartment?

It is important to note that if a wife chooses to give her husband immovable property, she can also receive similar exemptions in Haryana, Maharashtra, and Uttar Pradesh.

It’s important to remember that stamp duty in Delhi is due on a gift deed from a wife to her husband and is equal to 3% of the property’s circle rate value plus any applicable transfer duty and registration fees. 

Recall that the gift deed is final. 

It is vital to be aware that once a husband gives his wife property through a gift deed that was duly executed and registered, the gift is final, enforceable, and cannot be modified. 

According to Dewan, this implies that the done, or wife, becomes the owner of the gifted immovable property and that the donor, or husband, typically lacks the right to revoke or cancel such a gift once it has occurred. 

Due to high inflation, foreign investments in the Indian real estate sector are declining

Due to rising inflation and geopolitical concerns, foreign investments in the Indian real estate market, led by the US, decreased in 2023. The most popular investment asset was, remarkably, office space. 

Amidst global uncertainties, American institutions’ investments in the Indian real estate market dropped by 39% in 2023 to $1.35 billion, according to JLL India. Despite this, foreign institutional investors remained the primary contributors to the Indian real estate market, accounting for 63% of all investments in 2023 after increasing by 14% from the previous year. 

Since 2006, investors worldwide have found India’s real estate market particularly appealing, especially those from the US. US investments have regularly made up 40-45 percent of total investment inflow over the last five years.  

India has grown economically despite obstacles like the global economic downturn and geopolitical unrest. 

In 2023, the country’s real estate market brought in over $5.8 billion in institutional investments through 53 deals, up 14% from the year before, according to JLL India. 

Lata Pillai, senior managing director and head of capital markets at JLL India, stated that inventors are becoming more cautious due to the current mix of inflationary pressures and geopolitical uncertainties in the US economy. 

Several foreign investors, including Blackstone, GIC, Abu Dhabi Investment Authority, Brookfield India Real Estate Trust, and Canada Pension Plan Investment Board, are involved in the Indian real estate market. 

With $50 billion in assets under management as of December 2023, investment firm Blackstone stands out as one of the largest investors in the nation. The company specializes in real estate investments in malls, hotels, data centers, and warehouses. 

Office space remains the most popular investment option based on industry tastes; by 2023, it will account for 52% of all investments. 

In the upcoming years, Pillai predicted, “new-age sectors like student housing, data centers, and housing are also gaining attention from inventors and will continue to attract a substantial share of institutional investments.”

According to Vestian, a commercial real estate services company with $4.6 billion in investment deals and platform commitments, the office sector has remained the most popular. As of 2023, it held the highest percentage of all declared investments (52%); the following highest percentages went to residential (32%) and logistics and industrial (13%). 

Vestian highlighted that because of their higher returns, the prominence of organized players, and their transparency, commercial assets have always been the “preferred choice” of foreign investors. 

“In India, the average rental yield for residential properties is between 2-3 percent, while the average for commercial properties is 7-8 percent. Additionally, organized players and a transparent business environment increase investor confidence,” stated Vestian CEO Shrinivas Rao. 

After Embassy Real Estate Investment Trust departed, Blackstone became India’s office property owner, covering 70 million square feet. In addition, Blackstone has worked with the Embassy Group, K Raheja, Panchshil, Salarpuria, and Hiranandani on multiple projects. 

According to Vestian, foreign investors looking for higher investment returns will pour money into the Indian real estate market as soon as the global economy stabilizes. 

“Planned infrastructure developments and the strong performance of the Indian economy are expected to drive growth, even in the face of a global slowdown,” stated Pillai. 

In addition, Pillai predicts that new investment opportunities such as data centers, flexible spaces, real estate investment trusts, and infrastructure investment trusts will expand rapidly in the upcoming years due to intrinsic domestic demand. 

All the information a prospective homeowner needs to know about Isnapur, Hyderabad

Building extensions to the farthest locations has made Isnapur one of Hyderabad’s many new residential hubs. Isnapur, a short drive from Patancheru’s business district, is a well-known investment destination with easy access via NH-65, a tranquil atmosphere, and housing developments from renowned builders like Ramky Group. 

Isnapur, a developing neighborhood in North Hyderabad, is beside Cheruvu Lake and offers easy access to the city’s other regions via NH-65 and the Outer Ring Road. The region’s affordability and proximity to the Patancheru Industrial Hub– about 10 km away–contribute to its appeal. As a result of these factors, more and more housing projects, including Ramky Nextown by the well-known Ramky Group, have been established in Isnapur. 

Purchasing real estate in a place like Isnapur could be profitable because land prices have risen by about 80%. However, where should I invest in Isnapur, and what is the state of the local infrastructure like? Let’s find out!

Reasons to Invest in Hyderabad’s Isnappur 

The following is a thorough summary of the elements that draw investors to Inapur: 

The existence of well-known developers 

On the outskirts of North Hyderabad lies a residential neighborhood called Isnapur, which is rapidly developing. The Nehru Outer Ring Road, which connects the area to various parts of Isnapur, is located within four kilometers of the city, even though NH-65 passes through it. The many residential hubs that encircle Isnapur contribute to its vibrancy. Pahamylaram, Pocharam, Citizens Colony, and Lakdaram are a few of the surrounding locations. Ramky Estates and Farms Hyderabad has introduced Ramky Nextown, a new housing project in the area, in light of Isnapur’s strategic location. 

Expected to be finished by December 2026, Ramky Nextown is a gated community spanning 7.78 acres (4.8 acres in Phase 1). Starting at Rs 55 lakh, the project offers roomy 2 BHK residential apartments with large balconies. Each Ramky Nextown unit has a super built-up area of approximately 1000-1010 square feet. Three towers with ten stories each and 550 units total will be part of the project when it concludes. Ramky Nextown’s RERA number is P01100007370. 

Prospective homeowners in Ramky Nextown can take advantage of over twenty amenities, including a car wash area, swimming pool, football field, salon, spa, and child care center. Ramky Nextown also provides its residents with the benefits of modern amenities and a natural setting, as 70% of the space. 

Location strategy 

Inapur is a residential area with good transportation links. Therefore, purchasing real estate here would enable hassle-free access to Hyderabad’s most well-known locations. Major transit hubs close to Ramky Nextown include: 

  • NH-65 is about 400 meters away, and Nehru Outer Ring Road is about 4 kilometers away. 
  • By NH-65, Patancheru and Nagalapalli railway stations are roughly 7 to 12 km apart. 
  • The Nehru Outer Ring Road takes approximately one hour to reach Rajiv Gandhi International Airport.  

Proximity to work areas 

In addition to saving money and time on commutes, owning a home close to one’s place of work also opens up future rental opportunities. Ramky Nextown’s project site, Isnapur, is one such location with numerous nearby commercial establishments. A selection of them is enumerated as follows: 

  • Isnapur is roughly 6-10 km from Patancheru Industrial Area and Pashamyalaram Industrial Park. 
  • Easily accessible via Nehru Outer Ring Road are the well-known IT hubs of Gachibowli (27 km) and Financial District (25 km). 
  • There is roughly a 15-kilometer divide in BHEL Township. 

A well-liked vacation spot 

Pashamylaram Lake is one of Isnapur’s other noteworthy features. Isnapur is a popular tourist destination because of its lush, abundant vegetation and the picturesque Pashamylaram Lake, about three kilometers away. Pashamylaram Lake, well-known for its serene atmosphere and breathtaking scenery, welcomes plenty of tourists. It remains a popular destination for those seeking peace and tranquility. Many residents from the neighborhood visit this place to spend time together and go for walks in the morning and evening. Many people visit the nearby natural sanctuary of Cheruvu Lake.

The possibility of investment

Isnapur’s closeness to industrial areas and IT hubs, along with its easy access via NH-65 and the Outer Ring Road (ORR), are the main reasons for the spike in demand for real estate in the area. Tenants and home buyers alike now find the area a desirable place to live. According to PropertyWala, the average cost of real estate in Isnapur, Hyderabad, is about Rs 3,000 per square foot, following an astounding 80% increase in land prices over the previous five years. The average monthly rent for a two-bedroom apartment in Isnapur is between Rs 12,000 and 16,000, making it the most sought-after rental option. 

One key benefit of Iasnapur is its affordability, which offers investors a good chance to profit from future price growth, particularly in light of impending infrastructure projects. The following infrastructure initiatives are a few that should benefit Isnapur: 

  • The planned four-kilometer road would reduce traffic close to Isnapur and link Pashamyalaram Industrial Hub to the Outer Ring Road. 
  • The NH-65 connects Isnapur directly to Sangareddy, where the four-lane Hyderabad Regional Road would pass. 
  • Another significant project that may change the game is the Hyderabad-Bengaluru High-Speed Rail Corridor. According to the plans, there would be stations for the rail corridor at Yelahanka in Bangalore and Secunderabad in Hyderabad. Isnapur is approximately an hour’s drive from Secunderabad. 

Residents’ opinions 

According  to a tenant in the area, “Isnapur is a growing residential hub close to the well-known Patancheru Industrial Area and has excellent public transportation connections to other parts of the city.” One of the advantages of residing in Isnapur over other areas of Hyderabad is the affordability of housing options. Several gated communities and apartment complexes with contemporary amenities and facilities have emerged in the area due to the recent rapid growth in residential development. It is a handy place for families with kids because of its numerous educational facilities such as colleges and schools. Furthermore, hospitals, restaurants, and retail centers are all close by.” 

Obtain Environmental Clearance for Building Projects

Environmental clearance is one of the most crucial factors to consider when planning a construction project. It is the requirement for appropriate environmental clearance for construction projects in many cities. 

The environment may be significantly impacted by construction projects, both during and after the project concludes. Therefore, construction companies acquire environmental clearance from the relevant authorities before starting a project. 

Getting an EC clearance can be a challenging and drawn-out procedure. But it is crucial to wrap up the project environmentally conscious.  

This blog post will discuss the notification process for environmental impact assessments in India. We will discuss the meaning of EIA draft notification and its implications for building projects. We will also examine how India’s environmental clearance procedure ensures that building projects happen with the least possible negative environmental impact. 

EIA: What is it? 

The process of acquiring data regarding the possible environmental effects of a proposed project is known as an environmental impact assessment, or EIA. The development of mitigation strategies to lessen or completely eradicate those effects comes next. 

There are usually multiple steps in the EIA process. 

Screening: The proposed project undergoes screening to determine whether it will likely have significant environmental impacts before moving forward with an EIA. Further assessment is not necessary if there is no possibility that the project will have an impact before construction can begin. 

Scoping: Should the screening step indicate that there may be significant effects, the study region must decide which particular impacts need to undergo assessment.  

Assessment: Information about the possible environmental effects of the proposed project is gathered following the establishment of the study region. Numerous sources, such as computer models, field research, and lab tests, may provide this data.  

Mitigation: Based on the results of the assessment step, mitigation measures are put in place to lessen or eliminate all of the observed effects. These could be adjustments to the project’s blueprint, alternative construction methods, or requirements for post-construction monitoring. 

Making a decision: Compiling and evaluating all available data will determine whether or not to proceed with the project. If serious environmental problems continue, changes could be made or even scrapped. 

What is an Environmental Impact Assessment Notification?  

Government action to preserve the natural world resulted in the 1986 Environment Protection Act. The government issues an Environmental Impact Assessment Notification under section 3 of this act, which mandates that parties seeking to initiate new projects or alter current ones notify the government in advance and adhere to specific guidelines to protect the environment.  

What is the EIA Draft Notification? 

A formal notice that construction projects will be subject to the EIA process is the draft notification for the EIA. Usually, the notice is posted on the project website and in a local newspaper. The notification contains details about the project, the reason for the EIA, and how to take part in the proceedings. 

A crucial step in the EIA process is the notification of the draft EIA. The alert should include all pertinent project information clearly and succinctly. Included should be the contact information for those who would like to learn more or contribute. 

Among the most important recommendations are those found in the newly published draft of the EIA notification 2020, which includes shortened periods for public comment and hearings. The draft has shortened the public hearing notice period from 20 to 30 days and the hearing completion time from 40 to 45 days. 

The analysis was missing several projects classified as A, B1, or B2. Furthermore, proponents must follow specific guidelines outlined in the EIA report following approval from the relevant authority, known as post-clearance compliance. 

Projects lacking environmental clearance can now apply for a post-facto clearance through the notification, allowing them to resume regular operations.  

Construction projects with a built-up area of up to 1,50,000 sq meters are exempt, which marks a significant increase over the previous exemption of 20,000 q meters. These projects must still undergo evaluation by a state-level expert appraisal committee before obtaining environmental clearance. 

India’s Environmental Clearance Procedure

The Environmental Impact Assessment (EIA) notification 2006 governs the environmental clearance process for construction projects in India. All projects needing an EIA must register with the relevant State Pollution Control Board or Pollution Control Committee, per the Notification. 

The notification also outlines the steps involved in conducting an environmental impact assessment (EIA), including holding public meetings, submitting reports, and getting approval from expert appraisal groups or EACs.  

In India, the goal of the entire environmental clearance process for building projects is to reduce any potential harm to the environment. 

Below is an explanation of the Indian environmental clearance procedure. 

  1. Locating and Choosing the Site 

To start the project, the proponent must find a site that satisfies all applicable siting guidelines. The proponent has to find another location if the project site needs to be better. 

  1. Evaluation of Categories 

The next step is for the proponent to determine whether the project’s proposed environmental clearance is needed. The proponent carries out an independent or assisted EIA study if the notification schedule permits it. 

  1. The SPCB-submitted EIA report and evaluation. 

The investor then gives the EIA report to the relevant State Pollution Control Board and the state-based forest department (if located adjacent to or inside the forestland). 

The SPCB assesses the quantity and quality of pollutants or effluent that the project will likely generate and the efficacy of the proposed control measures to comply with the regulations. If the SPCB finds no irregularities and approves, it will issue a No-objection certificate. 

  1. Public Discussion 

Since it allows citizens to voice concerns about the project, the public hearing is essential for environmental clearance. This procedure also occurs before the no-objection certificate is issued.  

The chair of the hearing committee is the District collector. Before proceeding to the approval stage, the hearing committee reviews all suggestions and objections from the general public. 

  1. Sending a request for consideration to MoEF. 

The project proponent applies to the Ministry of Forest and Environment for the necessary environmental clearance in the case of Project A and the state government in the case of Project B. The supporting documentation for the application includes the EMP, NOC, EIA report, and details about the public hearing. 

  1. Evaluation of the Environment. 

Workers at the Ministry of Environment and Forets have reviewed the documentation, and if more inspections are required, they can stand on location. Moreover, the applications are received by and regularly met with the environmental appraisal committees, which are for each industry sector, including mining, river valley, and industries. 

The committee may also arrange public hearings to foster community involvement in development decisions for specific initiatives that spark public interest. After that, the appraisal committees draft their recommendations for accepting or rejecting specific projects.

Getting around India’s constantly changing real estate laws

India’s real estate market has a long history of being associated with complexity and opportunity. Stakeholders, from large international investors to individual homebuyers, have seen the regulatory framework change over time to strike a balance between sustainable development and rapid growth. The real estate industry’s legislative environment is currently changing, indicating a move in the right direction toward efficiency, accountability, and transparency. 

By 2024, the real estate sector will have a value of Rs. 65,000 crores, and by 2025, it will contribute 13% of the country’s GDP. As a result, the regulatory framework will evolve to encourage the growth of this actor. We must cope with this changing environment by recognizing and responding to these progressive developments revolutionizing the industry.   

The Start of Reforms in Regulations 

A turning point for the industry was the introduction of the Real Estate (Regulation and Development) Act of 2016 (RERA). An essential first step in revitalizing the real estate sector has been RERA, which attempts to protect buyers and increase developers’ accountability. The Act provides a systematic approach to resolving disputes by guaranteeing the timely completion of projects and establishing a regulatory body to oversee transactions. 

The Benami Transactions (Prohibition) Amendment Act amendment, which has been crucial in reducing illicit transactions and enhancing transparency, is another significant achievement. It fosters an environment of efficiency and trust, along with the government’s push to digitize municipal and panchayat papers and land records through the Digital India Land Records Modernization Programme (DILRMP). Legislative trends indicate that the liberalization of the Indian economy will continue to be prioritized, with a renewed emphasis on transparent real estate development and affordable housing initiatives. 

Inventiveness in Adherence 

We now reside in a more convenient and accessible era thanks to the digitization of compliance procedures. The red tape that formerly limited the industry’s agility has been reduced thanks to online portals for RERA-mandated project registration, complaint filing, and project progress reports. Significant improvements have occurred to the ease of doing business, boosting investor confidence domestically and internationally. Furthermore, buyers can now make better-informed decisions about the projects they invest in thanks to the transparency that RERA has brought about. 

Financial Regulations: A Step in the Right Direction 

The Goods and Services Tax (GST) has simplified the structure of real estate taxes, thus reinforcing financial discipline. Furthermore, the Pradhan Mantri Awas Yojana (PMAY) is bolstering the affordable housing market, drawing in investments and guaranteeing that the populace can realize their dream of owning a home. Affordable housing saw a significant boost with the announcement during the Union Budget 2023-24 of a commitment of Rs 79,000 crore (US $ 9.64 billion) for the PM Awas Yojana. 

By lowering lending standards for home loans and updating the sector’s risk weights, the Reserve Bank of India (RBI) has also contributed positively. It has encouraged banks to lend more money to developers and homebuyers, increasing the sector’s liquidity. 

Furthermore, India’s real estate market has historically been strongly protected and heavily shielded from foreign investment by stringent laws that only allow foreign companies to make local partnerships or joint venture investments, emphasizing particular project types like townships. But under the ‘Make in India’ initiative, 100% foreign direct investment (FDI) is now permitted for large-scale infrastructure and real estate developments, including townships, industrial parks, shopping centers, and more, thanks to reforms begun in 2005 and further enhanced in 2016. This method keeps smaller-scale real estate ventures for Indian businesses safe from being overtaken by foreign corporations by strategically directing foreign investments toward large, capital-intensive projects. 

These regulatory policies do have a positive effect; this is not just theory. It is a reality that is beginning to take shape and is already providing noticeable advantages. 

Promoting Sustainable Development 

The government’s emphasis on energy transition and reaching Net Zero targets is India’s real estate industry toward a sustainable revolution. The introduction of the Green Rating for Integrated Habitat Assessment (GRIHA) is driving the creation of energy and environmental efficiency. This change indicates a clear path toward environmentally, socially, and economically beneficial sustainable practices. An additional ambitious project is the Smart Cities Mission, which seeks to integrate urban development and sustainability into a model that could emulate. 

India’s real estate laws are evolving, which indicates potential for future development and improvement. Cooperation amongst regulators, consumers, developers, and the government highlights a dedication to a sector that sustains sustainability and makes a substantial economic contribution. This adaptable governance structure satisfies both the demands of the general public and market dynamics. Maintaining and strengthening these rules is essential to creating an open, effective, and equitable ecosystem, which is necessary for a robust real estate market and economy. Despite its complexity, this shifting landscape creates opportunities for a more stable and reliable real estate sector, which is critical to India’s continued economic development.  

Discover the top Indian cities for commercial real estate investments.

Real estate investing has long been considered a prudent financial move, and commercial real estate has always set the standard for available options. Several Indian cities present enticing returns for investors in commercial investment while compiling a list of India’s top cities. 

Everyone says, “Investments are subject to market risk,” but very few guide where to put your money. This article may be helpful if you are considering investing in commercial real estate in India and are looking for options. 

Even though our nation is still developing, some cities have incredibly developed real estate markets with excellent investment opportunities. This article lists the top three cities for investing in commercial space with their benefits. 

What is a commercial property? 

Any real estate used for purposes other than residential is considered a commercial property. These properties, which can be office spaces, retail stores, industrial warehouses, or hospitality establishments like hotels and restaurants, are all intended to bring in money. 

Advantages of owning commercial real estate

Whether it is a home or business, real estate investment continues to be considered the better choice. Compared to other real estate investment options, commercial property has certain advantages. They are as follows:  

Consistent Revenue 

The possibility of a consistent income stream is one of the main benefits of investing in commercial real estate. Unlike residential spaces, commercial spaces usually involve long-term lease agreements with businesses. For investors, this guarantees a steady stream of rental income that is predictable and stable.  

Greater returns on rentals 

When compared to residential properties, commercial properties typically offer higher rental yields. Because the returns are typically higher, it is an appealing option for people looking to maximize their investment returns. 

Greater duration of leases 

Generally speaking, commercial leases are deeper than residential ones. As an investor, you can profit from long-term income stability, which lowers the risk of vacant properties and fluctuations in income. 

An increase in property value

Commercial properties in prime locations frequently increase in value over time. Property values rise in response to an improvement in the local business climate, which raises demand for commercial space. 

India’s top cities for commercial real estate investments 

Risks, future potential, and return on investment (ROI) are a few variables that determine which city is best for commercial investment. The top three Indian cities for commercial space investment have been ranked. Take a look at the list: 

Bangalore 

Bangalore, sometimes known as the Silicon Valley of India, is a popular place to invest in real estate both residentially and commercially. Due to its close ties to the thriving IT actor, there are numerous employment opportunities in the real estate sector. 

Astute investors believe Yelahanka, Hebbal, and Electronic City are great choices. Large companies like Dell, Aegis, Infosys, Wipro, Hewlett-Packard, Accenture, Tata Consultancy Services, and Tech Mahindra have chosen Bangalore’s IT sector, which boosts the city’s real estate market. 

Considering this, real estate investing is still very common in Bangalore. The dynamic real estate market presents an ideal opportunity for investors seeking to increase and stabilize their real estate holdings. 

Mumbai 

Mumbai, India’s financial hub, has added residential and commercial space to its real estate portfolio. Mumbai is one of the priciest places to invest in real estate investments, making it one of the most expensive places to do so. 

The strategic features of the city, such as the Mumbai Trans Harbour Link, Atal Setu, and several metro links, are crucial in promoting the growth of commercial real estate. As a result of this advancement, builders and developers have aggressively promoted investment by providing significant discounts on real estate. The Maharashtra government’s discounts and reductions in stamp duty have increased consumer confidence and interest in the market. 

Pune 

Pune, a megacity in Maharashtra, has established itself as a city with potential commercial investment, contributing 13 percent of the state’s GDP. The city is a center for technology, and major companies in the sector are in high demand for commercial space. The city’s excellent connection to Mumbai has contributed to the recent explosive expansion of the housing market. 

Pune’s real estate values have shown investors an excellent return on their investment. The purchase of real estate (both residential and commercial) saw a notable uptick in 2021. Experts in real estate predict that the city will maintain its current trend and emerge as a viable center for commercial investments. 

Summarize 

India and its developing cities offer investors plenty of space and investment potential. Therefore, the ideal location for your commercial real estate investment if you want a higher return on investment. Bangalore, Pune, and Mumbai are the best places to invest in commercial real estate. Before investing in any type of real estate, whether commercial or residential, it is advisable to conduct in-depth market research.

The top 5 most important questions to ask your builder when buying a property that is still under construction.

While making a real estate investment, buyers frequently need help to choose between an under-construction and ready-to-move-in project. Though both are available, people frequently hesitate to invest in under-construction properties because of the lengthy construction periods. Before investing your hard-earned money in a property still under construction, find the answers to the five crucial questions you should have asked the builder by reading on. 

Under-construction properties are highly appealing to investors and end users due to their relatively lower prices when compared to ready-to-move-in units. Purchasing an under-construction unit can also allow you to select the preferred Vastu direction of the unit, the flooring, and, in certain situations, the floor. An under-construction property does, however, come with some drawbacks. Although Godrej Properties Limited, a Grade A developer, completes projects on time, the nation’s real estate market is chock-full of postponed under-construction projects. With that in mind, this piece aims to equip purchasers with a few essential inquiries to ask if purchasing a property that is still under construction. 

Industry experts feel that as long as due diligence occurs, buyers should not let the risk associated with any investment prevent them from purchasing an under-construction property. Furthermore, buyers now find it easier to select reliable developers and projects thanks to the Real Estate (Regulation and Development) Act (RERA) 2016. Customers feel more confident about purchasing real estate now that the RERA has emerged. From the project’s current phase to the permissions obtained or pending by the developer, every detail about the project is available on each state’s RERA website. The innovative legislation’s penalty provisions protect purchasers from construction delays and subpar work. 

To what extent has your project gained recognition since its inception? 

There are effects between a real estate project and its surrounding area. For this reason, choosing whether to invest in an appreciating or depreciating project is essential. It also applies to the project’s surrounding area. To put it in perspective, the homebuying values of Godrej Hillside, an unfinished residential project in Mahalunge, Pune, have increased by more than 50% during the past three years. Over the same period, Mahalunge’s real estate prices have increased by more than 20%. Godrej Hillside anticipates raising prices to complete several units beginning in October 2024. Investing in such a project yields a positive Return on Investment (ROI) for the buyer. You have to ask the builder this kind of question to ascertain the performance of your investment. 

How many units in the project have sold out? 

Even though a builder is more likely to provide an exaggerated response, it is still crucial to ask this question. The investigation is necessary since sluggish sales could indicate issues with the specific project. Asking the builder how many inquiries they receive in a week or month can also help you gain a better understanding. A reasonable exception for the conversion should be one or two percent of the quoted amount. Real estate experts caution against adopting a herd mentality when making investments. It is advisable to carefully examine the project, investigate the neighborhood, verify the project’s RERA registration status, and get a sense of the builder’s popularity by speaking with previous purchasers. 

What is the total number of units sold in the project? 

Even though a builder is more likely to provide an exaggerated response, it is still crucial to ask this question. Investigating sluggish sales is essential as it could indicate issues with the specific project. Asking the builder how many inquiries they receive in a week or month can also help you gain a better understanding. A reasonable expectation for the conversion should be one or two percent of the quoted amount. Nevertheless, you should not copy a project because other buyers flock to it. Real estate experts caution against adopting a herd mentality when making investments. 

It is advisable to carefully examine the project, investigate the neighborhood, verify the project’s RERA registration status, and get a sense of the builder’s popularity by speaking with previous purchasers. 

Can you tell us more about your prior projects? 

Verifying a builder’s history is extremely important. If the builder has completed projects on time and with structural integrity, you can expect the pattern to continue. Developers like Godrej Properties can build a solid reputation by meeting the needs of their customers with well-executed projects on schedule. 

Which commercial rights in the project will you keep? 

Developers typically maintain a commercial stake in a project long after it ends and ownership passes on. When buyers learn that the builder has kept some rights, like the clubhouse, and has only shared membership with them, they frequently feel duped and let down. It is best to talk about this with the builder and get it included in the agreement before you sign on the dotted line. 

Even though investing in a project still under construction may seem intimidating, there are benefits, such as being somewhat more affordable initially, offering better returns over time, and offering more customization options. However, it is advisable to invest in a project accredited with the RERA, use a property portal, and consider any future developments in the neighborhood before finalizing the deal–as with any real estate transaction. However, it is advisable to invest in a project accredited with the RERA, use a property portal, and consider any future developments in the neighborhood before finalizing the deal –as with any real estate transaction. 

A beginner’s comparison between investing in Indian real estate and the stock market

Purchasing financial instruments has been a method for people to increase their wealth. The stock market and real estate are India’s two main investment options. Each has advantages and disadvantages of their own. Let us compare investing in real estate and the stock market for beginners in India in this article, considering key elements like growth potential, taxation, liquidation, flexibility, emotional connection, control, and return on investment (ROI). 

Return on Investment (ROI)

Real estate: 

Investing in real estate frequently offers a steady, growing return over time. Growth in property values and rental income affects the overall return on investment. Nevertheless, the return might be slower in contrast to other investment options. 

For instance, investing in a residential property in an expanding area may result in rental income and future value growth.  

Stock market: 

A more rapid return on investment is possible by investing in the stock market, which also offers dividends and capital gains. However, unpredictability of volatility can also result in a decline in investment. 

Example: Investing in reputable businesses with a record of paying dividends can increase stock value and provide income. 

Prospects: If investments happen at the right moment, the stock market could yield faster and possibly higher returns, but market trends are unpredictable. Real estate is a long-term wealth-building option because it provides stability and tangible assets. 

Ease of liquidation

Real estate: 

There is more liquidity in stocks than in real estate. Stocks are more liquid than real estate. A house may take a while to sell, and there may be legal complications. The state of the market may take a while to sell, and there may be legal complications. 

The state of the market may also affect how long it takes to find a buyer. However, if you have invested in a suitable property, the market slowdown might not affect it. 

Example: Outside variables like market demand and economic conditions can affect how quickly you sell your real estate investment if you need to liquidate it. 

Stock market: 

Due to their high liquidity, stocks enable investors to buy or sell shares quickly. Online trading platforms also facilitate quick transaction execution.  

Example: Selling stocks is a way to offer liquidity during a financial emergency. 

Prospects for the Future: Stocks are a good option for investors who value quick access to their money because of their superior liquidity. 

Taxation : 

Real estate:

Several taxes, such as capital gains tax, registration fees, and stamp duty, apply to real estate transactions. Although there are deductions for rental income, rental income itself is taxable. 

For instance, if a property sells after being owned for two years, long-term capital gains tax currently at 20% with indexation may be applicable. 

Stock market: 

The taxation of stock market gains varies depending on how long they remain invested. The tax rate on short-term gains (held for less than a year) is higher than that on long-term gains. 

For instance, short-term capital gains from equity investments are subject to 15% tax, whereas long-term capital gains are tax-free up to a certain amount. 

Prospects: There will be significant tax ramifications, and real estate and the stock market are complex. Investors should consider their tax liability based on their investment horizon.   

Flexibility:

Real estate: 

Compared to stocks, real estate investments are typically less flexible. It takes time and work to sell a property, and diversification can be difficult for smaller investors. 

In the real estate industry, for instance, managing several properties or modifying investment strategies might necessitate more work. 

Stock market: 

Investing in the stock market offers low entry barriers and great flexibility. Investing in mutual funds or buying and selling various stocks allows investors to quickly diversify their portfolios. 

As an illustration, an investor can quickly reallocate their portfolio in response to shifts in the market or their goals for their investments. 

Prospects for the future: The stock market offers more flexibility, enabling investors to better manage their portfolios and adjust to shifting market conditions. 

Emotional connect: 

Real estate: 

Investing in tral estate frequently involves tangible assets like residential or commercial buildings, which evoke strong emotions. Making decisions may be influenced by this emotional connection. 

Example: Even though it might be financially wise, an investor may be find it difficult to sell a family home or vacation property due to sentimental value. 

Stock market: 

Investing in the stock market can be less emotional and more abstract than owning physical assets. Market trends and financial analysis are often the driving forces behind decisions. 

Example: Performance metrics, not sentimental attachments, are usually the basis for stock selling decisions. 

Prospects for the future: Depending on the objectives and circumstances of the investor, the emotional attachment to real estate can be either an asset or a liability. 

Control: 

 Real estate: 

Investors in real etate have more direct control over their holdings. They are capable of making decisions about maintenance, renovations, and property enhancements. 

Example: A real estate investor may choose to upgrade a property in order to increase its value and rental potential. 

Stock market: 

Stock market investors have little control over the management and business practices of the companies in which they invest. Because corporate management and market forces have a significant influence on decisions, there is very little that you can do about it. 

Example: The company’s executives run things on a daily basis, but at annual meetings, share holders have the opportunity to vote on certain issues. 

Future prospects: Because real estate allows for more hands-on control, it may appeal to investors seeking for a tangible, actively managed asset. 

Factor of risk relative to the asset: 

Real estate:

In general, real estate is thought to be a less risky investment than the stock market. Long-term property values are typically more stable, and the tangible aspect of an asset lands security. 

Example: The risk of large losses can be reduced in a growing economy by the steady appreciation of real estate values. 

The stock market: 

Because of this inherent risk, investing in stocks is riskier. Stock prices can be impacted by a number of variables, such as world events, industry trends, and economic conditions. 

Example: A sharp drop in stock prices may be caused by external factors like a global economic  downturn.  

Future Prospects: For investors who are risk averse, real estate presents a more stable investment environment. The possibility of greater returns in the stock market is accompain by greater risk, though. 

Potential for growth: 

Real estate: 

Investing in real estate offers the possibility of capital growth and rental income. Well-located properties can see significant value appreciation as demand is driven by urbanization and population growth. 

Example: As infrastructure develops and demand rises, real estate investments in developing areas can result in significant growth. 

Stock market:

The stock market has the potential to expand significantly and quickly, particularly in developing industries or when there are strong individual stocks. 

As an illustration, investing in technology stocks during a time of industry innovation and expansion can result in a sizable increase in portfolio value.

Prospects for the future: Growth is possible in both the stock market and real estate, but the stock market might yield larger return faster. 

When contrasting real estate and stock market investments in India, each path has particular benefits and drawbacks. An investor’s preferences, risk tolerance, and financial goals will determine which option is best for them. While the stock market offers flexibility and liquidity, real estate offers stability, emotional connection, and control. To capitalize on these advantages and reduce risks, a well-balanced investment portfolio may include a combination of stocks and real estate. For wealth management to be successful in India, it will be essential to stay informed and adjust tactics as market conditions and investor preferences change. 

Do you invest in real estate? Check this out

Over $5.8 billion in institutional investments were made in 53 deals in the real estate sector in 2023, a 14% increase from 2022. Demonstrating India’s resilience in the face of global economic headwinds. Investor confidence in the Indian growth story is expected to persist through 2024, according to JJL India report titled “Investing in Tomorrow: The Real Estate Journey of 2023.” 

With a 63% stake in the total investments in 2023, foreign institutional investors made up the most contributors. The Americans, historically the most to investments, saw a sharp decline to 23% of total investments from a peak of 43% in 2022. 

Nonetheless, domestic investors saw a sharp rise in market share, with 37% of all investments made, up from an average of 19% over the preceding five years. 

With 81% of all real estate investments made, equity remained the predominant type of investment. Non-core assets make up 53% of all transaction volumes. 

According to the report, the office sector will continue to be the most favored industry in 2024. 

With a 52% share of the investment pie, the office sector by a wide margin. Residential and warehousing came in second and third, respectively, at 13% and 16%. The amount of capital flowing into the office sector increased by 61% in 2023, from $1.8 billion in 2022 to $3 billion in 15 deals.  

Emerging industries to draw capital 

In the upcoming years, many institutional investments will go toward emerging industries like student housing, data centers, and warehousing. Institutional investors in India have been paying more attention to student housing as an asset class. There is a big chance for institutional investment in this space because of the rising number of students going to college and the rising need for high-quality housing. 

Institutional investments in India in 2023 appeared unaffected by inflation or unclear global economic trends. The trend of investments surpassing $5 billion has persisted since 2018. The US and Canada’s investment activity has decreased due to various rate increases in the Americas. Nonetheless, the APAC area made a sizable contribution in 2023. The outlook for the Indian economy is still favorable, and we anticipate this positive trend will last into CY 2024, according to Lata Pillai, senior managing director and head of capital markets at JLL India. 

Pillai continued, “The India growth story will continue to be robust, driven by its inherent strengths and continued focus on economic development, even though the upcoming elections may cause delays in decision-making.”

Platform Assertions 

Furthermore, $2.8 billion in platform commitments to invest over the following few years was made public in 2023. Platform commitments decreased significantly (by 38%) from 2022, the year with the most growth in platform deals—a 174% rise from 2021. 

The global economic slowdown has impacted investor sentiment toward long-term commitments despite increasing investments. With an investment capacity of more than $1.8 billion, Ivanhoe Cambridge and Mapletree struck the largest platform commitment deal in the history of technology-led offices in India last year.  

Exploiting public market opportunities with REITs. 

Real estate businesses and investors now have more ways to access public markets in India thanks to the introduction of REITs, which provide regulated investment structures and liquidity. 

The first retail Real Estate Investment Trust (REIT) in India, Nexu Select Trut REIT, was listed in 2023. Anchor investors responded favorably to the IPO, absorbing 45% of its total size. 

The last two REITs, Brookfield REIT and Nexus Select Trust REIT saw a rise in participation from domestic institutional investors, indicating a growing level of interest and confidence in the Indian REIT market. In 2023, Blackstone sold its 23.5% stake in Embassy Office Parks REIT for $850 million, or Rs 316 per unit, and left the REIT. 

Bain Capital, ICICI Prudential MF, and Capital Group were the top three purchasers, acquiring stakes ranging from 7 to 9%. The robust reaction from institutional investors suggests that this real estate investment tool is becoming increasingly popular and that real estate is beginning to institutionalize. 

2024

The nation’s growth trajectory has generally benefited from the government’s efforts to advance infrastructure development and bring structural reforms. Experts in the market believe that this growth will continue and that investors will continue to feel optimistic about India’s growth story. 

Shortly, the outlook for private equity investment in the Indian real estate market is anticipated to remain positive, having recently improved.  

However, it will be crucial to closely monitor the trends in capital flows going forward into 2024. The capital flow slowdown observed in the fourth quarter suggests the potential cautious approach investors, especially those with foreign experience, may take in 2024. 

Investors may become more risk-averse and careful when making real estate investments due to long-term uncertainty and monetary tightening in developed countries. The upcoming elections may cause delays in decision-making, but overall market sentiment remains positive. 

Mangalore Property Tax: All-Inclusive Guide

The Mangalore City Corporation (MCC) has raised the rates of property taxes in Mangalore for both residential and vacant land plots. There have been many complaints to the authorities about the increased tax rates on undeveloped land and plots. If you own a home in Mangalore, read this article for the most recent information on property taxes, deadlines, and rebates. 

Property taxes are one of the sources of revenue for the Mangalore City Corporation (MCC). These revenues support infrastructure growth and also the efficient operation of public facilities. These revenues support infrastructure growth and also the efficient operation of public facilities.  The unit area system serves to calculate taxes for homes in Mangalore. 

The MCC has recently written to the Karnataka government requesting a reduction in the tax increases for vacant plots under the Self-assessment Scheme (SAS). There was opposition to the government’s decision to impose a 0.2-0.5 percent tax on vacant land. It is because the Mangalore property tax regime has a determined effect on low-income families, who own over 50% of the undeveloped land outside of the city. 

You can review the previous revisions to the property tax for residential and commercial properties made by the state authorities below: 

Mangalore’s MCC property tax rate in 2024 

The Mangalore property tax is set for each property type by the Mangalore City Corporation (MCC). The properties fall into three categories: non-residential or non-commercial use, commercial, and residential. The corporation reports that property taxes range from 0.20 to 1.50 percent. 

Type of Property Mangalore property tax rate 
10A residential use 0.50 percent 
10B commercial use 1.50 percent 
10C non-residential/commercial use 1 percent 

How can I pay my property tax online in Mangalore? 

The steps that follow are available to pay the property tax in Mangalore online:

Step 1: Go to MCC’s official website. 

Step 2: Click the “Pay Property Tax” link on the home screen. 

Step 3: Enter your registered mobile number and submit the OTP in the corresponding field. 

Step 4: Select the door and ward numbers at this point, then look for the property. Select “Pay Tax” to proceed to the following page. 

Step 5: To find out the applicable tax value for the current fiscal year, applicants can utilize the calculate tax button. 

Step 6: Select “Yes” or “No” to indicate whether the property has changed. 

Step 7: Examine the comprehensive summary of the SAS to comprehend the property details and the estimated tax amount. 

Step 8: Choose the method of payment from the available options. After making the last payment, download the challan for your records. 

What is the deadline for Mangalore’s property taxes?

The final week of April 2024 is when the Mangalore property tax is due online.

What is Mangalore’s property tax rebate? 

According to the most recent order, a 5 percent rebate is available to anyone who pays their Mangalore property tax online before the deadline or in advance. The rebate will be equivalent to the property’s entire value. 

Mangalore property tax calculator 

The online calculator on the official website calculates the total tax on a property in Mangalore. These steps can help streamline the Mangalore property tax calculation process. 

Step 1: Go to the MCC official website at https://www.mccpropertytax.in/WebPortal/ 

Step 2: Select the ‘Pay Property Tax’ link from the home screen. 

Step 3: Enter and send in the mobile number you registered. 

Step 4: Look over the details of your property and click the “Calculate Tax” button. 

Step 5: At this point, provide information on the homepage, including your mobile number, email address, property ID, select village, street name or number, Katha number, survey RS number or survey TS number, locality or company name, and pincode. 

Step 6: Choose the rented or self-used property and press “Yes” or “No.”

Step 7: Select the property type and then the category type. 

Step 8: Enter the plinth factor, total build-up factor, area of land occupied in square feet, and site area in cents. 

Step 9: Select the type of property, door number, slum status, and status of exempt property. 

Step 10: To calculate property tax, add the floor details, construction type, market value, and year of construction. 

Mangalore property taxes are due in advance. 

In Mangalore, paying property taxes in advance allows one to do so before the annual deadline. A five percent rebate on the total value is the primary benefit of paying tax in advance. Current regulations also state that individuals who pay advance tax after the tax rate is revised will have their payments adjusted in the following fiscal year. 

How to amend your name on your Mangalore property tax 

The procedure for renaming the asset may begin by submitting several documents. The supporting documentation includes a copy of the associated housing society’s No-Objection Certificate (NOC), the most recent property tax receipt, and an attested copy of the sale deed. After submitting the request, the officials will review the supporting documentation and grant approval within 15 to 30 days. 

How can I get a receipt for my property taxes paid?  

Residents of Mangalore can download their property tax receipts from the official website. 

Step 1: Go to https://www.mccpropertytax.in/WebPortal/, the official MCC website. 

Step 2: Select the ‘Pay Property Tax’ option from the homepage. 

Step 3: After posting this, type in your registered cell phone number and send it in. 

Step 4: Click the search button after entering your door and ward number. 

Step 5: Print the property tax payment receipt for your records at the end. 

The most recent information and news regarding Mangalore’s house tax 

  • The guidance value of immovable property is to increase by thirty percent, per an order from the Karnataka government. This rate is subject to annual revisions in the Property tax in Mangalore.    
  • Upon adding 30,000 properties to the tax net, Mangalore City Corporation will have a total of 2.13 lakh properties to tax.   
  • MCC will levy taxes on vacant land in March 2023 equal to 0.3 to 0.5 percent of the total land value by the state government’s revisions to the property rates in Mangalore, which had been set at 0.5 to 1.5 % of taxable capital.  

In conclusion, timely property tax payments in Mangalore contribute to the upkeep of a spotless record in the official records. Property taxes can be paid online or at the physical municipal centers that have been designated as such. Taxpayers’ overall burden is lessened by obtaining rebates and discounts when they pay their taxes ahead of schedule. 

Why do homebuyers favor low-rise buildings over high-rises?

Homebuyer’s preference for low-rise properties has grown, indicating a shift away from the tall buildings that characterize urban landscapes. Living in one of these is usually more personal and focused on the community because the buildings are typically smaller in number. Low-rise housing provides a welcome diversion from congested, airless urban areas! This trend is here to stay!

For many years, high-rise projects have dominated the urban building typology; however, lately, this has quickly changed, with low-rises emerging as the preferred option. The urban building typology was dominated for a long time by high-rise projects, but in the last few years, low-rises have become the more popular choice. Low-rise housing arrangements have seen a significant resurgence since the COVID-19 pandemic due to the growing demand for large homes, a laid-back lifestyle, and community living. Developers are capitalizing on this trend at a rapid pace. Unquestionably, buyers remain attracted to amenities, but they also value privacy and a caring environment for their loved ones, two things that low-rise buildings provide.   

Let us examine in more detail the growing appeal of low-rise projects.

According to the Indian Building Code, low-rise housing technically refers to buildings up to 15 meters tall with ground plus four floors (G+4). In contrast to high-rise complexes, low-rise buildings house fewer people and have fewer towers. Low-rise buildings offer residents a more personal and community-focused living environment because of their smaller height and fewer residents. These often include extra-large living rooms, distinct entrances, and sometimes even private outdoor areas like patios and gardens. 

Low-rise developments are typically small-scale endeavors performed primarily by local or homegrown developers. Given the new circumstances, homebuyers have demonstrated a striking shift in preference for these projects, demonstrating that quality and renown are not the only factors. Low-rise projects are rapidly gaining favor because buyers are now more interested in the community living, amenities, and exclusivity that these projects offer. 

One developer based in Delhi NCR that has several noteworthy low-rise projects on the Golf Course Extension Road is the Nitara Group. The developer has several builder floor projects open in 3 BHK, 4 BHK, and 5 BHK configurations. With sizes ranging from 342 square yards to 1200 square yards, these residential projects have Simplex, Duplex, and Triplex builder floors. 

Within Sector 63A of Gurgaon is a noteworthy project of Nitara Homes called Nitara Projects Anantraj. With a carpet area of 1950 square feet, it offers 4 BHK apartments. The building has four levels, and each floor has four units. These residential units have a starting of Rs 3.25 crore.  

Growing popularity of low-rise housing 

While high-rise buildings have urban settings, luxury low-rise real estate is rising among Gurgaon buyers. Let us investigate the cause of this change. 

Security and Safety

The increased security and safety of low-rise housing is one of its main benefits. Because gated communities are less vulnerable to structural damage than tall high-rises, they assure natural disasters like earthquakes. In high-rise buildings, elderly and young people may encounter difficulties navigating the staircase if elevators are malfunctioning or undergoing maintenance. This problem virtually vanishes because low-rise housing arrangements have limits to four stories. Low-rise developments also have far more controlled and thorough entry and exit security checks because fewer people reside there. 

In all of its housing projects, Nitara Group provides features like seismic zone IV-complaint structures and three five-tier security systems to allay residents’ fears about their safety. 

Elevators may become stuck, people may fall from great heights, etc. Low-rise housing is the best choice in these situations because it allows them to remain close to the ground without making them feel uneasy or afraid. 

Greater value at resale

Low-rise buildings frequently have higher resale values than high-rises. Low-rise living offers privacy and exclusivity, which appeals to buyers and makes these properties more desirable in the resale market. These homes’ ongoing needs contribute to their increasing value over time.

Reduced upkeep expenses  

Since low-rise housing is more energy efficient, it also has lower maintenance costs, which is another factor that works in its favor. Against high-rises, which create extreme weather conditions that need constant maintenance, like air-conditioning and higher electricity usage, low-rises ensure a balanced temperature and less energy consumption. Also, other maintenance costs are typically easier to handle in a building with fewer floors and a smaller footprint. Homebuyers who want to benefit from homeownership while reducing long-term costs will find this appealing. 

Natural views and housing with low-density 

Compared to high-rise structures, low-rise developments provide a low-density living environment where residents have more space and fewer neighbors. It produces a calm and serene atmosphere that appeals to people who prefer a more sedate way of life away from the bustle of busy skyscrapers. 

Additionally, these arrangements offer greater exposure to nature than high-rise communities, where many towering buildings obstruct the views of the outdoors. Although low-rises have existed for ages, buyers are now taking notice of them due to the chaos of the city, the high pollution levels, and the health risks associated with COVID-19. It has forced them to settle in environmentally friendly properties.  

Large Room 

The abundance of large rooms is one of the benefits of living in a low-rise. Low-rise projects have comparatively larger spaces than high-rise projects, where rooms are typically ten by 10 with built-in amenities like wardrobes in many cases. Nitara homes, for example, have rooms that measure 13’3x 10’6” and 11’6 x 13’6”; However, they do not include large balconies that are 6’ broad. The lobby areas outside the apartments are large and spacious, with wide walking passages, because they have fewer units per floor.  

Specifically, residents benefit from larger living spaces, which make their homes feel more comfortable and accommodating on each floor. Those looking for space to live and unwind will find this feature appealing. 

Cohabitation in gated communities

Many low-rise housing projects, like Nitara Homes, prioritize community living within gated societies. These communities frequently have common areas, shared resources, and a feeling of community among the people living there. In addition to promoting social interactions and a sense of community, this creates a close-knit environment. 

Range of personalization 

One more advantage of low-rise homes is that they are adaptable. Real estate buyers can personalize their living spaces by putting in gardens or outdoor spaces. This level of personalization allows residents to tailor their homes to their preferences and way of life.  

Reduced strain on infrastructure

Because fewer people use the parks, elevators, lounges, clubhouses, swimming pools, and parking spaces, among other amenities, high rises to low rises put less strain on the infrastructure. An area’s population growth would inevitably result in more traffic and a burden on public services. 

In conclusion, the growing popularity of low-rise housing is a reflection of consumer’s shifting tastes. For those looking for a unique, more customized living experience, low-rise living is appealing because of its safety, security, large rooms, community living, lower maintenance costs, higher resale value, and customization options. 

Institutional real estate investments in India reached a five-year low in 2023.

Institutional investments in the Indian real estate market decreased by 12% in 2023 to $ 4.9 billion in 2022. According to data released on Thursday by workplace solutions company Vestian, it is the lowest investment in the sector since 2019, when it was $ 6.5 billion.  

It emphasized the caution investors demonstrate in the face of global challenges. From $3.9 billion in 2022 to $2.7 billion in 2023, foreign investments decreased by 30%. Its portion of institutional investment overall fell from 79% to 65% in the previous year. 

With 72% of their investments in this sector, foreign investors concentrated more on commercial assets. The industrial and warehousing sectors came in second, accounting for 15%. 

Nonetheless, domestic investors remained confident in the industry; total investments doubled to $1.5 billion in 2022 from $ 687 million. The share of domestic investors increased to 35% in 2023 from 14% in 2022. 

Domestic investors allocated 42% of their investments to commercial assets. Thirty-nine percent of residential projects came next. 

“The optimism of domestic investors kept the real estate market buoyant as they continued to show confidence in India’s growth story,” said Shrinivas Rao, chief executive officer at Vestian. 

In part, due to the cautious nature of foreign investors, the co-investment also saw a 95% decline, from $360 million in 2022 to $18 million. 

Previous data from Colliers revealed that institutional investments in the industry decreased during the October-December quarter. During the quarter, these investments totaled $822.3 million, a 37% decrease from $1,299.40 million during the same period last year. 

Vestian anticipates that institutional investments will return in 2024 due to the Indian economy’s robust pipeline of planned infrastructure projects. 

New asset classes are causing the Indian real estate market to explode. As the market expands, so does the need for funding. Rao believes that an increased need for capital could lead to a high return on investment for investors. 

“As investors anticipate high returns, they may inject capital into the sector, resulting in further growth and expansion, thereby driving the need for higher capital investments.”

How can a registered mortgage help the borrower as well as the lender?

Can you imagine buying or refinancing a home in today’s day and age without a mortgage loan? What happens if the borrower does not make loan payments as agreed? Banks and other financial organizations now require collateral for every loan to prevent these undesirable circumstances. It is where the idea of filing for a mortgage becomes relevant. A registered mortgage: what is it? We are here to explain. 

The days of banks authorizing large loans without any inquiries are long gone. To safeguard their investment and best interests, banks today need security. As a borrower, you give your banks a Deed of Trust when you register a mortgage, enabling them to invest in you and your property without concern. By now, you must be eager to find out more about registered mortgages and the hazards involved. The advantages and disadvantages of registering a mortgage, as well as the steps involved in applying for and removing one, will all be covered in this article.  

A registered mortgage: What is it? 

“Registered mortgage” refers to a legal document that serves as loan security. In other words, banks have more control over the collateral or real estate when a mortgage is registered. Lenders can protect their investment by obtaining a claim on the property if the borrower defaults on the loan. In India, details about the property are in the land records, and the mortgage is filed with the regional Registrar of Assurance. 

Upon registering a mortgage, what happens? 

A registered mortgage charges for the property, giving the lender the right to sell it to recoup the balance owed on the loan. Paying a fee determined by the property’s value and submitting the required paperwork is part of the registration process. 

However, the benefits of mortgage registration extend beyond the lender. The borrower can use this as proof of ownership and reliability while it guarantees the lender a legal claim. 

How does one register for a mortgage online? 

With the advent of online registration, the mortgage registration process in India has become more convenient and easy. Nowadays, people can register their mortgages online, doing away with the need for paper documents and trips to government offices, are as follows: 

Step 1: Register for an account 

Make an account on the relevant authority’s official website. Fill out the necessary information and finish the registration process. 

Step 2: Complete the application. 

Enter the required information, including the tenure, interest rate, loan amount, and property details. 

Step 3: Add files 

Provide the scanned copies of all the necessary paperwork, such as proof of address, proof of identity, proof of income, and proof of property.  

Step 4: Remit the fees: 

Make the online registration fee payment now. The loan amount and property value determine how much the fee is. 

Step 5: Acceptance and confirmation 

Following the application’s submission and payment of the necessary fees, the relevant authority will review the information and supporting materials. 

Following the completion of the verification, they will approve the mortgage registration. 

How Can a Mortgage Registration Be Removed? 

The crucial step of removing mortgage registration is to release the property from the mortgage and all encumbrances. To delete your mortgage registration, follow these steps:  

Step 1: Get a certificate of no objection (NOC)

You must first receive a No Objection Certificate from the lender. This document attests to the fact that the loan has been fully repaid and that there are no outstanding balances. 

Step 2: Gather the necessary documentation

Assemble the required paperwork, such as the loan agreement, the original sale deed, and the NOC. Ensure that every document is in multiple copies. 

Step 3: Go to the Office 

Go to the Sub-Registrar’s Office, the location of the mortgage registration. Send the paperwork and cover the necessary costs to start the removal process. 

Step 4: Await authorization

The Sub-Registrar will conduct a thorough examination and verify the documents. They will authorize the removal of the mortgage registration if everything is in order. 

Step 5: Make record updates 

It is imperative to promptly update the property records with the updated status following the removal of the mortgage registration. It guarantees that there are no encumbrances on the property. 

You can successfully remove mortgagee registration and obtain a clear title to your property by these steps. 

Let us now answer the initial question: What is a registered mortgage? As long as the borrower and the lender have documentation of the collateral and the payments made against it these mortgages are legally enforceable. A registered mortgage does not provide total security and protection from assets.  

Property values and market conditions constantly shift, and legal proceedings to retrieve the money or asset could result from a loan default. We advise speaking with a real estate or tax specialist before applying for any mortgage. 

All the information you require regarding SUC in real estate taxes

With initiatives like the Swachh Bharat Abhiyan taking the world by storm, India is looking at more progressive ways to maintain its cleanliness and environmental sustainability. SUC, or Street Waste Management User Charges, is one such program run by the regional government. This article will examine the meaning, objectives, advantages, and modifications of SUC in property taxes. 

Restructuring effective waste management practices has long been a top priority in India. Street Waste Management User Charges, or SUCs, are an efficient solution devised by local municipal or governing bodies to control this expanding issue. However, what is the state of waste management in India’s cities for residential and commercial properties? What prospective homeowners and property owners should know about SUC in Indian property taxes is provided here. 

Property tax SUC: Interpretation 

The charges imposed by the Indian local government for collecting and disposing of waste produced by homes and businesses are known as “usage fees for street waste management.” The purpose of these fees is to guarantee city cleanliness and encourage appropriate waste management practices. 

It is significant to remember that these fees are only applied to waste management services and are not related to property taxes. User fees generate revenue to fund waste collection vehicle maintenance, hire sanitation staff, and carry out waste segregation and recycling programs. 

SUC in real estate taxes: Advantages 

Among the advantages of putting SUC into practice are: 

  • Environmental sustainability: User fees help create a kinder, healthier environment by supporting waste management programs. Effective waste management reduces pollution, halts the spread of disease, and safeguards the environment.  
  • Cost-cutting: Efficient waste management minimizes the workload for municipal governments and lowers the total cost of removing waste. It could lead to lower taxes and more efficient use of public funds for other development projects. 
  • Job creation: A sizable portion of the population can find work in the waste management industry. The money from user fees funds employment in facilities that handle waste treatment, recycling, and collection. 

SUC for real estate taxes: City Specific fees 

In India, different cities have different user fees for managing street waste. Here are a few significant numbers: 

Mumbai 

Depending on the type of property, users in Mumbai are responsible for paying for the management of street waste. For instance, monthly fees for residential properties are approximately Rs 60, whereas commercial property fees are contingent upon the use of the property. 

Delhi 

In Delhi, the built-up area of the property determines the user fees for managing street waste. The MCD states that the monthly cost for residential properties ranges from Rs 50 to Rs 200, and for commercial properties, it can range from Rs 100 for street vendors to Rs 5,000 for clinics, marriage halls, exhibitions, and the like. 

Bangalore 

Bangalore uses a different strategy of user fees for street waste management. Residents of Bangalore pay their user charges combined with their monthly electricity bill instead of choosing a separate user charge. The monthly fee for residential properties ranges from Rs 30 to Rs 500, whereas the cost of commercial properties varies from Rs 75 to Rs 1,200.  

Chennai 

Based on the annual rental value and the purpose of the property, user fees for street waste management vary in Chennai. Monthly fees for residential properties can range from Rs 10 to Rs 100. Commercial or religious buildings (such as temples or wedding halls) can cost anywhere from Rs 300 to Rs 15,000, depending on their intended use. 

It is crucial to remember that these fees could alter depending on the rules set forth by the local municipal corporation. It is best to speak with the relevant municipal corporation or a real estate advisor for the most accurate and current information. 

SUC in real estate taxes: 2016 revision 

The Ministry of Environment, Forests, and Climate Change in India introduced the new Solid Waste Management Rules (SWM) in 2016 in response to the nation’s growing concerns about solid waste management. Unlike the SUC rules, the amended regulations concentrate more on donations that cross municipal boundaries. Among the new regulations’ primary points are: 

  • Separation at the source 

The regulations stress how crucial it is to separate waste at the source. It facilitates material recycling and rescue while also helping in effective waste management. 

  • Processing and handling of waste

The SWM regulations promote the construction of facilities for the processing and treatment of waste. By assisting with the appropriate handling and disposal of waste, these facilities lessen the load on landfills. 

  • Extended producer responsibility (EPR): This encourages manufacturers to adopt eco-friendly packaging and recycling practices. 
  • Waste-to-energy facilities 

Additionally, the rules encourage the construction of waste-to-energy facilities. By converting waste into energy, these plants lessen reliance on fossil fuels and help to maintain a cleaner environment. 

In conclusion, many Indian urban areas that have struggled with waste management have found that introducing user fees for street waste management has been a godsend. In addition to the SUC property tax levies, solid waste management laws have the additional purpose of improving how effectively waste management and disposal. We advise contacting the local municipal authorities to learn more about the expenses and rules governing waste management in your neighborhood. 

Property prices in this category are among the highest in India.

India moved up eighteen places to take 14th place in the third quarter of 2023 on Knight Frank’s global house price index. The nation’s home prices rose 5.9% annually, creating a notable upward momentum.

In September 2023, the average annual growth rate for home prices in the 56 markets that compose Knight Frank’s Global House Price Index was 3.5%. The previous quarter saw a 2.2% increase in worldwide home prices. 

According to Knight Frank, India’s steady economic growth is the reason behind the country’s rising residential market despite obstacles like increasing home loan rates and inflationary pressures. State and federal governments offered assistance during the pandemic, which sparked the market. 

As per Shishir Baijal, CMD of Knight Frank India, “strong internal economic fundamentals, rising aspirational qualities of residential real estate, and an elevated interest cost environment brought on by elevated levels of inflation are driving heightened demand among homebuyers in prominent residential markets within the country.”

Emerging residential hubs in India’s urban centers are made possible by the increased momentum infrastructure development is receiving from the country’s increasing urbanization, according to Bajijal.  

The Indian housing market has been strong despite price increases. Compared to 3.65 lakh units in 2022, as many as 3.49 lakh units were sold in the top 7 cities by the end of the third quarter of 2023. 

At the same time, the total sales value of the sold housing stock increased marginally to Rs 3.48 lakh crore. The value of all residential property sales in the first nine months of 2023 is already 7% more than the entire year of 2022. 

After a five-to-six-year period of stagnation, real estate value began to decline in 2013. It was a period of tepid demand. But after COVID, we saw a significant resurgence in demand that exceeded the previous peaks, according to Poulomi Estates MD Prashant Rao.

Pent-up demand, the need to upgrade, and a willingness to pay for newer features were key factors driving up property prices. Property prices also rose due to infrastructure development and improvements in the economic environment. Even though real estate prices increased dramatically across the nation, Hyderabad consistently outperformed other top cities year over year. It’s since the city has seen an increase in corporations moving their headquarters there. We anticipate this trend continuing. 

The first quarter of 202 saw Turkey at the top of the rankings. With an annual growth rate of 89.2%, this is another year of record growth. The top five rankings belong to countries in southeast Europe, including Greece (14%), Croatia (13.7%), and North Macedonia (11%). 

With 6.3% annual growth, Japan leads the Asia-Pacific region, followed by India with 5.9%.

Given the rising costs for mortgage borrowers, the resilience of global house prices is surprising; however, market supports include solid savings, pay settlements above inflation, and a shortage of stock available for purchase. The main problem facing the housing markets in 2024 will continue to be low market liquidity, with sales volumes falling by up to 25% from their recent peaks. “Only a move toward lower interest rates will boost sales activity,” stated Liam Bailey, Knight Frank’s global head of research. 

Homes under Rs 50 lakh in Delhi NCR

With its towering housing stock and upcoming infrastructure projects, the National Capital Region (NCR) presents an intriguing lure for prospective homeowners. This area has numerous housing options, from affordable homes to opulent, high-end residences. Nonetheless, Propertywala.com offers you a list of some of the best locations to invest in Delhi NCR for less than Rs 50 lakh, all while keeping your budget in mind.

Many new locations have gained prominence lately as the Delhi Metro expands into far-flung parts of the National Capital Region (NCR). Other factors that have contributed significantly to growth include the launch of affordable housing projects, better road connectivity, and a greater emphasis on infrastructure. “National Highway (NH)-24, Greater Noida, Greater Noida West, and Yamuna Expressway are some of the best locations for homebuyers in Delhi NCR,” says Suresh Garg, CMD of Nirala World and Secretary of CREDAI Western UP. End users are now driving the market, so developers are concentrating on keeping it going by providing affordable homes in these areas. Infrastructure development has also had an impact on real estate expansion. “For those looking to purchase a home in Delhi NCR for less than Rs 50 lakh, these are the top five neighborhoods.  

NH-24 (National Highway -24) 

NH-24, sometimes known as “the lifeline of Ghaziabad,” has been an essential catalyst for growth in several communities along its path. “Siddharth Vihar, close to NH-24, is a developing area that meets the demands for homebuyers at reasonable costs,” continues Garg. Housing societies long NH-24 have average property values of approximately Rs 3,700 per square foot, following a nearly 15% YoY price rise. The region has grown by almost 18% over the previous five years, and its potential will continue to increase even more with the impending metro extension in Indirapuram.

Noida Extension (Greater-Noida West) 

Greater Noida West, formerly known as Noida Extension, is now a popular option for reasonably priced real estate. The extension of the metro link from Noida to Greater Noida has been one of the primary factors driving the region’s growth. Additionally, some of the earlier worries of home buyers have been put to bed by the resolution of land acquisition issues. Prominent developers, including Gaurs Group, Mahagun Group, and Ace Group, have created several affordable housing projects in the region, and the pace at which the infrastructure is developing there is astounding. The development of Jewar Airport and the connectivity provided by the Noida-Greater Expressway have improved the area’s positive aspects. “The proposed commercial development, the metro terminal at Bodaki, and the Delhi-Mumbai Industrial Corridor (DMIC) project promise to create a lot of job opportunities in the region, which would further boost its real potential,” states Ashudeep Batra, vice president of operations at Exotica Housing. 

 The most popular configuration is the 2 BHK, with average prices rising by nearly 50%, from Rs 4,500 per sq ft square to 5,800 per sq ft. 

New Gurgaon

Sectors of New Gurgaon are suitable for end-use and investment due to their strategic location and connectivity via NH-8. In addition, building the Delhi-Mumbai Industrial Corridor (DMIC) could contribute to the region’s expansion. Between Sectors 81 and 95, the entire area is currently seeing the construction of numerous residential and commercial projects. As the city’s civic infrastructure improves, New Gurgaon will likely become one of the most sought-after neighborhoods. The home values in the micro-market have grown annually by more than 45% and are currently between Rs 5,000 and Rs 6,300 per square foot. The State government’s decision to relocate Kherki Daula Toll Plaza to Pachgaon would help alleviate the area’s heavy vehicular traffic. 

The Raj Nagar Extension

The extension of Raj Nagar, like many other parts of Ghaziabad, has been developing quickly. “Over the past few years, Raj Nagar Extension in Ghaziabad has attracted many home buyers looking at quality housing but unable to afford a property in NCR, “says Anuj Goel, Executive Director of KDP Infrastructure. Raj Nagar Extension is a haven for homebuyers thanks to its many upcoming infrastructure projects, better connectivity, and affordable housing developments. It is the hub of industry, commerce, and education in the western United Provinces and has excellent road connectivity. The Raj Nagar Extension links NH 91 and NH-58 via the six-lane Meerut Bypass. In addition, an elevated road connects the township to Delhi. The green belt beside the Hindon River is another major draw.”

Faridabad 

Many of the previously remote areas of Faridabad no longer have connectivity issues thanks to the Delhi Mtero’s extension of service from Badarpur to Escorts Mujesar. Investors are showing a renewed interest in exploring different sectors in Faridabad. Nehar Par is one of the neighborhoods experiencing rapid growth, with an average property price of Rs 4,100 per square foot. 

Your first-time home-buying checklist in Delhi NCR 

If you have this home-buying checklist handy when closing a deal, investing in real estate in Delhi NCR can be profitable! What you should know is as follows: 

  • Delays in possession 

Possession delays in metropolitan real estate are a well-known problem. In Delhi NCR, whether you are opening a store in a business district or purchasing your first house, be ready for delays in possession. When there are delays, the builder or developer usually requests an extension of six months. But this problem primarily affects impending and new housing developments; it rarely affects properties for sale. 

  • Potential for resale 

Opportunities for real estate are plentiful in a bustling city like Delhi NCR. New developments with better features, amenities, and handy locations. Before completing the purchase of your first property, research the property’s potential for resale and determine whether selling it at a good time will help you financially. 

  • Building Caliber 

Shocking footage of a 20-year-old, four-story building collapsing in the Bhajanpura neighborhood of Delhi-NCR flooded media channels in March 2023. Even though no one was hurt, this incident raised questions regarding the quality and standards. Nonetheless, trustworthy developers and builders with proven designs are accessible in Delhi NCR. The three most important factors to consider when buying a property in Delhi NCR are construction quality, development review, and brand value. 

The NCR region has seen tremendous change in recent years due to new highways like the Dwarka Expressway and Greater Noida Expressway, along with metro extensions like the Aqua Line and Rapid Metro. Before making a choice, prospective homeowners should perform extensive research and due diligence because the listed area’s popularity is due to numerous factors. 

Ahead of The Opening Of The Ram Temple, Boom In Real Estate

The home of God Ram, Ayodhya, was once a sleepy town and is undergoing an infrastructure makeover as the much-awaited Ram Mandir will be open in just a few weeks. The city is experiencing a real estate boom, with property values rising sharply. Due to the influx of investors, hoteliers, and business owners, property values in the city have increased by up to three times their initial value. 

Local real estate brokers say there are very few left to purchase. “Ayodhya does not have any new land available,” real estate broker Kakku Singh stated. 

In the periphery, where rates ought to have hovered around Rs 3,000. The current rates range from Rs 6,000 to Rs 7,000. There is no land around the Ram Mandir. If there is, it has no rate. One can obtain anything they desire, “he continued.” 

As of November last year, over 9,000 houses had been solid in Ayodhya. The corresponding figure has increased by over 100% this year. According to data, 20,067 properties have sold this year. 

As the inauguration date draws near, the prices have been at their highest. 

From about 10,000 lakh in 2018-19, the department’s revenue has increased to Rs 15,631.33 lakh as of November. 

As for a percentage increase, the Department’s revenue receipt for November was the highest in the State at 109%. 

I get calls from people looking to purchase land to open resorts and hotels. According to Yogendra Pratap, Assistant Commissioner of the Stamp & Registration Department,” Therefore, this has increased the revenue of the Stamp Department.” 

The community hopes that the investment will draw tourists and give many of them a source of income. 

To capitalize on the rapidly expanding infrastructure, Rajjan Lal, who resides 40 km from Ayodhya, sold his property in the village and purchased a 1000-square-foot plot to open a small cement shop close to Ayodhya. 

“There is a possibility of earning a decent living because of the temple construction. Though the rates are also high, I will do business here,” he remarked. 

In Ayodhya, the government also intends to construct a 4.40-acre tourism facilitation center. A budget of Rs 130 crore is forecast.

The project will develop several commercial centers in the tourist center, such as a tourist office, lodging, food court, shopping center, art and craft center, and parking area. Soon the project should take off. 

By the end of this month, the Ayodhya International Airport will probably be finished, according to Union Aviation Minister Jyotiraditya Scindia.

All the information you require regarding KDA’s new plot scheme

The Kanpur Development Authority (KDA) has been working tirelessly to advance the city by building infrastructure and starting housing projects for its citizens. The board recently introduced a new plot scheme to offer affordable homes. Let us examine the program’s specifics, such as the requirements for eligibility and the application procedure.

Kanpur, one of the several cities lining the banks of the Ganges, is the city that epitomizes the typical Uttar Pradesh. Kanpur, a city that combines modern and traditional elements, is well-known for its iconic Green Park stadium and its thriving leather manufacturing industry. Its political fervor and cultural vibe have consistently made headlines. 

Due to its constantly shifting setting, the Kanpur Development Authority (KDA) has become a key player, influencing the town’s development. With new initiatives and plans, KDA is committed to offering affordable housing to all families. The article examines a recent initiative of KDA, along with other significant details. 

Concerning the Kanpur Development Authority.

One of the parties involved in creating and arranging the city’s infrastructure is the Kanpur Development Authority (KDA). The Housing Development of the Uttar Pradesh government oversees KDA’s operations. The authority actively allocates land for residential, commercial, and industrial uses, among other aspects of urban planning. KDA handles all infrastructure projects that improve Kanpur’s general quality of life. These projects include building roads, drainage systems, and public amenities.

KDA New Plot Scheme: Principal Features 

Find out the salient details of this scheme and guarantee your position in the charging urban landscape of Kanpur:   

Scheme Heading FDA’s New Plot Plan 
Presented by Kanpur Development Authority 
Year2023 
Recipients Kanpur locals 
Application Process Online 
Official Website http://www.kdaindia.co.in/en/index.php 

FDA’s new plot scheme for 2023: Qualifications and paperwork

Applying for the FDA’s new plot scheme requires the candidate to meet the following requirements: 

  • Applications for the Kanpur Development Authority Plots Scheme 2023 must be at least eighteen years old. 
  • Those who qualify should own property or live close to economically deprived areas of Kanpur.
  • Potential candidates must be lawful permanent residents of Kanpur or any nearby states.

Entries for the KDA’s new plot scheme must include the following list of documents:

Documents needed for the new plot scheme in KDA 
Passport-sized photo
Phone Number 
PAN Card 
Aadhaar Card details 
Voter ID/ Aadhaar card 
Caste Certificate 
Certificate for the Disabled Category 
Income Verification 
Details of Spouse’s Aadhaar Card 

How can I apply for the KDA New Plot Scheme 2023?

The KDA new plot scheme application process occurs offline. The Kanpur Development Authority has published a notice that includes project details and registration dates.

Applicants must complete an offline application process to qualify for the KDA’s new plot scheme. To purchase the registration booklet, go to the closest HDFC bank branch. The application includes all the forms applicants fill out, and payment must be made at the HDFC bank using a demand draft. The KDA website will then publish the draw outcomes, ensuring openness and accessibility for all participants. 

KDA New Plot Plan 2023: Advantages 

For the benefit of Kanpur’s citizens, the state government supports a new plot scheme that the Kanpur Development Authority (KDA) is introducing. 

  • The program gives thousands of citizens the chance to obtain permanent residential addresses, giving them a sense of security and community. 
  • The recipients of the program can purchase a plot of land in any designated state area, enabling them to participate in the city’s development and invest in premium real estate. 
  • The program goes beyond the distribution of plots to guarantee housing for thousands of residents and to meet the increasing demand for high-quality living areas.
  • The KDA’s new plot scheme recognizes the value of community building and holistic urban development, and unlike individual schemes, it aims to benefit entire families. 

Conclusion 

The 2023 plot scheme, one of the visionary schemes of the Kanpur Development Authority (KDA), embodies the city’s modernization process. With KDA leading the way, the city is starting a sustainable development journey and looking forward to a time when Kanpur’s legacy is kept alive and enhanced for future generations.