Godrej camps cannot compete for six years, except in the real estate industry

Mumbai: Following a split in the 27-year-old locks-to-land development group, the Godrej family has agreed not to compete for six years, except in real estate. After the non-compete period, they can enter each other’s domains, but not under the Godrej name. 

As part of the family settlement agreement, Adi Godrej and his younger brother Nadir will be granted exclusive rights to use the Godrej brand in FMCG (cosmetics, cleaning supplies, toiletries, foods, beverages), financial services, pharmaceuticals, diagnostics, and chemicals businesses. 

Their cousin Jamshyd and his sister Smita Crishna will have exclusive rights to use the Godrej brand in the defense, consumer durables, medical devices, construction materials, interior design, electric mobility, software services, and security product industries. 

However, both groups may use the brand name in the real estate development and marketing industries. Jamshyd and Smita have real estate interests through the unlisted Godrej & Boyce, while Adi and Nadir own the listed Godrej Properties. 

None of the Godrej group companies will have to pay royalties on the brand. The non-compete clause went into effect on April 30. The agreement states that after six years, “a family group can enter  into the exclusive business of the other family group, without the use of the Godrej brand including in their corporate names.” 

Both groups, however, can venture into areas where neither has a presence, leveraging the Godrej brand with group-level differentiators, as these have been designated as shared business spaces.  

For example, medical services, hospitals, hospitality and education. 

Non-compete covenants are common in family settlement agreements. 

In March, the TVS family agreed to avoid competition for a set period. 

From promoters to public shareholders. 

Once the ownership realignment in the Godrej group’s listed entities is completed siblings Jamshyd and Smita Crishna will become public shareholders. 

They are currently part of the promoter group for listed Godrej entities. According to Sebi regulations, if a promoter wishes to be classified as a public shareholder, they cannot own more than 15% of a listed entity. According to the family settlement arrangement, Janshyd and Smita, classified as promoters once the realignment is completed, will apply for it. 

Gurgaon’s Signature Global real estate developer will deliver 17 million square feet by the end of FY 26

These units, launched in Gurgaon and Sohna in 2021-2022, are all in the mid-segment and affordable category. The revenue recognition for these projects is Rs 11,000 crore. 

According to a top company executive who spoke to Moneycontrol, listed real estate developer Signature Global will finish and deliver over 17 million square feet of space in its 28 distinct projects across the Gurgaon and Sohna regions by the financial year 2025-2026 with potential revenue of Rs 11,000 crore. These will all be affordable, mid-segment units that will go on sale in 2021-2022. 

According to Signature Global’s Chairman and Whole-Time Director, Pradeep Aggarwal, these initiatives are underway in Gurgaon and nearby suburbs like Sohna.  

“By FY 2025-2026, we hope to deliver and finish these 17 million square foot projects. The revenue recognition for these projects is Rs 11,000 crore. We plan to begin completing these projects in 2025. According to Aggarwal, Moneycontrol, “The projects are a mix of mid-segment and affordable categories in a ratio of 70:30.”

According to him, the mid-income segment apartments at Signature Global start at Rs 1 crore, while the affordable category flats begin at Rs 25-30 lakh.

Twenty-eight projects -23 residential and five commercial and retail — are scheduled for completion by 2026, according to data provided by Signature Global. Of the twenty-three housing projects, eight are in the Gurgaon mid-income category, six are in the Sohna mid-income category, and nine are in the affordable segment.

218.5 acres of land in Sohna and Gurgaon are part of the overall development. These projects will likely require a total investment between Rs 7,500 and Rs 8,000 crore.

In addition, Signature Global intends to introduce new projects with a top line of between Rs 10,000 and Rs 12,000 crore in the upcoming fiscal year and 10 million square feet of saleable space. Agarwal says the company will develop ten million square feet of land in the next fiscal year.

“The new launches will comprise three projects, which will come up in Gurgaon sectors 71, 84, and Sohna region of the district. These will be premium projects with a ticket size starting from around Rs 3 crore,” he said.  

According to Aggarwal, these projects will require an investment of about Rs 6,500 crore, including the cost of the land, with an estimated top line of about Rs 12,000 crore. 

In an attempt to raise Rs 730 crore, Signature Global successfully conducted its first public offering in September 2023. 11.88 times as many shares as there were in the public offering, which included an Offer for Sale (OFS) for Rs 1277 crore and a new issue of shares valued at Rs 603 crore.

Signature Global has supplied ana rea of 6.7 million square feet through December 2023. In addition to the 16.9 million square feet it is now developing, there are another 28.4 million square feet of potential saleable space in the works.

Due to increased revenue, the real estate company reported a combined net profit of Rs 2.17 crore for the quarter that ended in December. During the comparable period in 2017, the company reported a net loss of Rs 44.89 crore.  

Investors flock to Coimbatore as the residential real estate market outperforms Tier-1 cities.

Relying on its industrial and economic growth, Coimbatore has become one of the leading real estate development stories. Investment appeal has increased due to significant strategic projects like defense industrial parks, airport expansion, bypass institutions, and IT development. The recent floods in places like Chennai and Thoothukudi have accelerated the city’s transformation into a real estate hub as investors’ attention has shifted from major cities to Tier 2 cities. Coimbatore is a safer and more promising place to invest because of its pleasant climate and quality of life.  

The investment hub

Due mainly to its variety of real estate options, which include both residential and commercial spaces, Coimbatore is becoming an increasingly attractive destination for real estate investors. In particular, there has been a spike in activity and investments in real estate projects in Coimbatore Western Bypass. Due mainly to its variety of real estate options, which include both residential and commercial spaces, Coimbatore is becoming an increasingly attractive destination for real estate investors. In particular, there has been a spike in activity and investments in real estate projects in Coimbatore Western Bypass. This trend is because Coimbatore attracts investors looking for growth and value in the real estate industry because of the city’s lower costs relative to larger cities and the substantial returns these investments can produce. 

Real Estate Property Value Appreciation 

Coimbatore’s land value has been rising, indicative of the city’s increasing economic vitality, potential as an IT hub, and allure as an investment destination. Near Coimbatore, neighborhoods like Kovaipudhur, Edayapalayam, Chinnamettupalayam, Vellakinar, Thudiyalur, Palathurai Road, Nanjundapuram, are becoming more well-known for their tranquil surroundings that are suitable for residential development and have more room for appreciation in the future.  

This course is seeing a new age of change in the residential real estate market, with advanced types of living spaces like plotted development communities. 

The surrounding “Tier 2” areas of Coimbatore also experience significant growth in light of the city’s real estate boom, demonstrating the positive spillover effect of the city’s success. Because of its proximity to Coimbatore’s thriving market and warm weather, Kovaipudhur, for example, has recently become the hub for those looking for high-quality residential and commercial investment opportunities. This growth points to a pattern in which urban overcrowding and the desire for quiet yet convenient living spaces in peripheral areas are more alluring due to their appreciation potential. 

The economic dynamism of Coimbatore, strategic development projects, and a growing number of foreign and domestic investments are driving the city’s real estate market, which will continue to grow as investors and end users alike find the city attractive due to its affordability and high return potential. 

Indian real estate investment in the UAE and Europe soars amid high rental yields

Due to immigration schemes like the Golden Visa and appealing rental yields of more than 7%, Indian investments in foreign real estate, particularly in Europe and the United Arab Emirates, have increased dramatically, according to Propertywala. It’s happening at the same time the UAE’s real estate prices are growing at 16-19% annually. 

Investment in real estate

Indians sent out Rs 240.2 crore in December 2023 to buy real estate overseas, according to RBI data. Comparing this to Rs 206.8 crore during the same period last year, there was a noticeable increase. Similarly, FY23 saw remittances of Rs 2,714 crore, up 38% from Rs 1,961 crore in the previous year. 

Immovable property in the real estate market consists of factories, warehouses, residential buildings, and manufacturing spaces. 

The demand for real estate among European nations experiencing immigration are Greece, Cyprus, Malta, and Spain. 

According to Ritiesh Mehta, Senior Director at Jones Lang LaSalle, “the application process for Golden Visa programs takes about 3-4 months, with investors anticipating citizenship within 5-7 years,” Moneycontrol was informed by Mehta.  

Golden Visa offers residency or citizenship to individuals who invest in government bonds, real estate, or other approved vehicles. 

Rental Profits

India emerged as one of the top investors in Dubai, with cumulative investments of $335 million across 123 projects during the first half of 2023, according to data from the Dubai Land Department, as cited by international real estate consultant Vestian.

Depending on the location and size of the property, the average investment ticket size in Dubai is between Rs 4-4.5 crore, according to Property Junction consultant Vijay Sawlani, who works in Dubai. Generally, the rental yields fall between 7 and 9 percent; however, in desirable areas like Downtown or Business Bay, the short-term rental returns can reach 11 to 13 percent. 

A minimum investment of 2 million dirhams, or roughly Rs 4.5 crore, is required to obtain a Golden Visa for Dubai for five to ten years. 

“Property prices in Dubai’s newer emirates like Sharjah, Ras AI Khaimah, and Abu Dhabi range Rs 25,000-35,000 per square foot, which is more affordable,” Vijay Sawlani told Moneycontrol. “Property costs in upscale Mumbai neighborhoods like Andheri vary from Rs 38,000 to Rs 45,000 per square foot.  

According to Moneycontrol, rental yields in Sharjah and Abu Dhabi range from 6 to 8%, with Dubai offering the highest yields at 9 to 10%. 

Investing in Europe

 An investment of about Rs 4-8 core is needed to be eligible for permanent residency in countries like Greece, Cyprus, Malta, and Spain. According to Moneycontrol, these locations typically have a 4-5% rental yield. 

According to the study, entry-level investments in Europe range from Rs 2.5 crore in rural areas to Rs 8 crore in cities. One of the least expensive residency programs is available in Greece, where popular locations include Athens, Thessaloniki, Mykonos, and Santorini.  

High net worth individuals are the primary target market for other countries such as the US and UK, which have lower rental yields of 3.5-4% and require larger ticket sizes ranging from Rs 8 to 20 crore. 

UP’s real estate market will continue with investments of Rs 50,000 crore.

The state government stated on its website that these real estate projects, which include vital works in Noida, Ayodhya, were introduced during the just-finished ground-breaking ceremony in Lucknow.

The government of Uttar Pradesh announced on Thursday that the state would experience a boom in the real estate industry with the start of projects valued at over Rs 50,000 crore, which will also lead to the creation of many jobs for the state’s youth.

The state government said in a statement that these real estate projects, which include major construction in Noida and Ayodhya, were introduced during the just-finished ground-breaking ceremony in Lucknow. 

Numerous well-known real estate companies, both domestically and internationally, have started working on projects in Uttar Pradesh. M3M India Private Limited plays a role in the project, investing Rs 7,500 crore in building official, retail, residential, and service apartments. More than 14,000 jobs will be available through the project for the state’s youth, according to the statement. 

Additionally, it stated, “With an investment of Rs 3,000 crore, the House of Abhinandhan Lodha has initiated a luxury residential and commercial real estate project in Ayodhya, which is to create over 1,000 job opportunities.”

In addition to Omex, Prateek Retailers India, Wonder Cement, Shipra Estate, Rishita Developers, Gallant Lifespace Developers, ANS Developers, SG Estate, ORO Infra Developers LLP, Guy Laroche, Sanfran Developers, Janico Developers, Apex Group, BBD Group Viraj Constructions, Gajadhar Technosys LLP, Amamrvati Homes, Nilansh Builders, and Sapphies Infrastructures LLP are among the other significant investors in real estate sector, according to the statement.  

“These real estate projects will provide Uttar Pradesh’s youth with numerous employment opportunities,” the government declared.

The government, noting that several well-known companies have implemented projects in the state through GBC 4.0, is optimistic about the logistics sector providing plenty of job opportunities to the youth of Uttar Pradesh in addition to real estate. 

The Sharaf Group is the largest investor, contributing over Rs 1,250 crore towards building a logistics park in the Moradabad district. According to the release, the project will generate more than 1,250 job opportunities in the state. 

According to the statement, the government approved the Warehousing and Logistics Policy to increase the state’s storage capacity in light of rising industrial investment in Uttar Pradesh.  

It also stated, “This policy encouraged the development of logistics zones and provided fast-track land allocation for logistics parks.” 

The Mumbai real estate market records a 21% YoY increase in property registrations but a 22% decline in stamp duty collections.

According to Knight Frank India, residential units comprise 80% of registered properties, with non-residential assets constituting the remaining 20%. 

In February 2024, the Mumbai real estate market recorded 11,742 property registrations, 21% higher than the 9,684 registrations for the same month in the same year. According to data from the Maharashtra government, there has been a 7% monthly increase, with 10,967 properties registered in January 2024.  

However, from Rs 1,112 crore in February 2023 to Rs 865 crore in February 2024, the revenue from stamp duty collections decreased 22% YoY. Stamp duty receipts increased from Rs 760 crore in January 2024 on a MoM basis. 

According to Knight Frank India, a real estate consulting firm that examined the data, the government’s decision to restrict tax deductions on capital gains earned from the sale of residential property after March 31, 2023, is what caused the exceptionally high stamp duty collections last year and the subsequent drop in stamp duty collections. 

Furthermore, eight percent of all registered properties are residential units, with the remaining twenty percent being non-residential assets. 

Mumbai saw the most property registrations in February 2024 compared to any other February in the previous twelve years. Increased optimism and the release of pent-up demand as the pandemic’s effects subsided drove the prior high in February 2022. However, according to Knight Frank India’s report, the recent surge can be attributed to growing income levels and a positive attitude toward homeownership. 

February 2024 saw a rise in the percentage of apartments of 500 square feet or less, from 34% to 45% in the previous year. Conversely, the share of apartments with a floor area of 500-1000 square feet dropped from 45% to 42% last year. 

However, this may be an isolated incident, as Mumbai homebuyers have recently preferred larger apartments, according to Knight Frank India.

Knight Frank India Chairman and Managing Director Shishir Baikal, “The positive trajectory is expected to sustain, particularly  with the anticipated robust economic momentum and the potential easing of interest rates  during the year, creating a favorable environment for homebuyers.”

Where are the houses being sold? 

In the meantime, the combined Central and Western suburbs account for over 73% of all properties registered, as these areas are hot spots for new developments that provide a variety of contemporary amenities and excellent connectivity. 

92% of consumers in Central suburbs and 86% of customers in Western suburbs chose to buy things at their local micro market. According to Knight Frank India’s research, the familiarity of the area and the availability of goods that suit their preferences for features and price also play a role in this decision.   

A fresh approach to owning expensive assets: India’s fractional ownership model

The post-pandemic surge in mobility and leisure travel has led to an increasing mainstreaming of India’s fractional ownership. Furthermore, although economies like the US, UK, and China—all of which have sizable populations of the world’s wealthy- have seen a sizable market for fractional ownership, the Indian market was small until recently. That, however, is changing fast.

Fractional possession enables people to invest in pricey assets like real estate, private planes, yachts, etc. Splitting their ownership costs into more affordable shares has caused a shift in the domestic luxury market in recent years. Another name for it is co-ownership, which enables several investors to profit from increases in an asset’s market value and rental income.

Through platforms for fractional ownership, a substantial amount of investments made in this model are finding their way into the residential and commercial real estate markets. Through these business ventures, high-net-worth investors can access assets typically owned by more affluent peers. The hassle-free model helps owners overcome the drawbacks of sole ownership, which is hampered by costly outlays, lack of transparency, and management issues. Additionally, professionally managed finances, upkeep, and legal matters are typical in fractionally owned properties. These benefits, which give owners a hand-off investing experience, are further propelling the trend.

According to the co-founder and CEO of your fractional ownership company, Sravan Gupta, this is the personalized experience each owner receives upon check-in. The company recommends owners write down their requirements before check-in to provide a seamless experience. Many options are available, ranging from how many cans of chilled beer to have on hand to which air freshener to use to greet visitors. In addition, offerings like specially trained personnel and on-demand chefs have enhanced the model’s appeal. The market for fractional ownership properties in India grew by 65%, from $ 5.4 billion in 2020 to $8.9 billion in 2025, at an annualized rate of 10.5%, according to data from Knight Frank.

According to Vimal Nadar, Senior Director and Head of Research at Colliers India, “the trend has been influenced by many factors, including the affordability of premium properties becoming less accessible, shifting investment and lifestyle preferences, and the proliferation of start-ups and investment platforms. “Underlying assets are farms, vacation homes, and commercial real estate, but the second-home segment has the most activity. Furthermore, more and more investors are purchasing second homes in well-known tourist locations like Alibag, Lonavala, Goa, Kodagu, Rishikesh, and Shimla.

Although the market is expanding quickly, according to Amit Goyal, MD of Sotheby’s International Realty in India, it has yet to reach its full potential. “Currently, properties valued between 10-20 crore are being converted into vacation homes. The majority of co-owners are six to ten people. That is where the Indian market is more concentrated, he claims. For example, Yours deals in properties valued at 5-20 crore.

These belong to eight equal shares residing in places like Goa, Alibaug, and Nilgiris. For every property, the co-owners own shares in a purpose vehicle (SPV) set up by the platform. Research from around the world supports this as well; according to our calculations, eight is the ideal number to divide up the ownership of a second residence. It grants each shareholder about 45 days of ownership annually,” adds Gupta.

One company that offers fractional ownership of premium commercial real estate is Strata, which operates in Bengaluru. According to Sudarshan Lodha, co-founder and CEO of the company, professionals, including lawyers, doctors, and even entrepreneurs, are showing interest in the space. “Getting exposure to the real estate market is their primary goal. Additionally, professionally owned and managed commercial assets are currently a profitable option,” he claims. But problems still exist. The desire for fractional ownership among investors is “still limited due to the lack of a standardized framework, independent valuation, and proper due diligence,” according to Colliers’ Nadar. In response to these worries, the Indian market regulator Sebi has suggested that fractional ownership platforms fall under its purview. According to Nadar, HNI’s involvement in the model will raise the regulatory framework’s promotion of supply-side maturity and consolidation.

Beyond real estate, the co-owners are keen on yachts and private planes. The market for these, however, is still nascent, says Sotheby’s Goyal. One of the main disadvantages, he claims, is that Indian cities are not suitable for housing and hosting yachts. “For this reason, it is uncommon to find an Indian-owned yacht parked in India. One of the few companies that provides luxury yacht fractional ownership is Champion Yacht Club, situated in Bengaluru. A fractional owner can spend 1.25 – 24 crore per share annually for six weeks on their yacht. In the meantime, the market for fractional ownership of private aircraft is broader and is growing due to the rise in HNIs in the nation. In addition to offering a premium experience, private jets, unlike yachts, reduce the time spent traveling, even for business rather than just leisure travel. Experts claim that this works in the jets’ favor.

Luxury as we know it is undoubtedly changing, whether with private aircraft, yachts, or second homes at sought-after vacation spots; fractional ownership is also quickly gaining popularity.  

Building Has Been Built The New Plan

A wide range of modern methods of construction (MMC) techniques and products have been developed, completely altering the construction industry’s behavior from what it was previously. 

This incredible transformation brings about more and more developments in this sector. 

What are Modern Construction Methods?

Modern construction methods (MMC) are developed in the construction industry with proper planning and design to reduce construction time and cost while maintaining overall sustainability.  

Many methods are used and built in the current scenario. The most well-known and widely used modern construction methods are listed and explained below.

Modern Construction Methods Types 

Among the various MMCs used in the construction industry are: 

  1. Flat Panel Precast System 
  2. Volumetric 3D Modules 
  3. Flat Slab Building
  4. Panels of Precast Cladding 
  5. Concrete Floors and Walls 
  6. Concrete Precast Foundation 
  7. Insulation for Concrete Formwork

Flat Panel Precast System 

This construction method entails the process of fabricating floor and wall units off-site. Separate factory outlets and facilities are necessary for this. The panel units are manufactured according to the design specifications and requirements and brought to the site for installation. This method is best suited for construction project activities that continue. 

Windows, doors, and finishes are available on the manufactured panels. This method includes factory-fitted building envelope panels with insulation and decorative cladding that can load-bearing elements. 

3D Volumetric Construction

As the name implies, 3D volumetric construction entails the off-site production of 3D units consisting of modules. They are brought to the installation site and assembled module by module. Because each modular unit produced is a 3D unit, this construction is known as a 3D volumetric building or modular construction. 

The modules can be transported in multiple ways or by various means. It can include transporting the basic structure or a completed unit with all internal and external finishes and services installed, with only the assembly remaining. The factory construction combines various items of the same product while maintaining quality throughout. As a result, this method works best for repetitive projects that require the goods to assemble quickly. 

Flat Slab Building 

Flat slabs are extremely versatile structural elements. Because of its versatility, it frequently appears in construction. The flat slab provides minimum depth and faster building. The system also includes adaptable column grids. 

Flat slabs are a good choice where it is necessary to steal the partitions to the slab soffit due to acoustic and fire concerns. Flat slabs are faster and less expensive than other types of construction. When building on flat slabs, it’s possible to cover the soffit with a good surface finish. Flat slab construction also increases energy efficiency because it allows for utilizing building thermal mass when planning ventilation, heating, and cooling requirements. 

Concrete Foundations Precast

Precast concrete is an option for quick foundation construction. This method is better suited for custom design. The elements required for the foundation’s construction are built separately in the factory (off-site), then transported to the site and assembled. The manufactured product must meet the quality standards specified by the designer.  

Concrete piles serve as the primary support for the assembled foundation. Both systems connect during the assembly process. These foundation systems aid in increasing productivity, improving quality, and reducing the amount of soil excavated. It is best suited for extreme and adverse weather conditions. This construction system is the best choice when dealing with highly contaminated ground. 

The technology of Twin Walls 

The twin wall technology is a hybrid wall system that combines the erection speed and precast concrete qualities with the structural integrity of in-situ concrete. This particular wall system ensures the structure’s structural integrity and waterproof reliability. The twin wall system has two wall slabs. Lattice grinders cast in place separate the two slabs. The procedure involves: 

  1. The job has a wall unit. 
  2. The twin units are temporarily higher. 
  3. Later, reinforcing serves to join the wall units. 
  4. Concrete fills the space between the wall units. 

This construction method is both faster and more cost-effective than traditional methods. The twin wall system has its main application in erecting precast floors. 

Concrete Formwork Insulation  

The insulating concrete formwork (ICF) system employs twin-walled panels that are either polystyrene panels or blocks. These swiftly come together to serve as the building’s formwork. 

Concrete is the formwork that has emerged. This concrete is manufactured in a factory with quality assurance and is ready-mixed. The majority of the mix is ready-mix concrete. 

Expanded polystyrene blocks provide a higher level of thermal insulation. The concrete core will provide strength and sound insulation. 

Panels of Precast Cladding 

The cladding system is the process of layering one material on top of another to form a skin or layer. This layering system is not only for aesthetic purposes, but it can also aid in controlling the infiltration of weather elements. 

The cladding does not provide any kind of waterproofing. Instead, the cladding acts as a water barrier. It safely aids in the direction of water or wind, allowing runoff control. It helps to prevent infiltration into building structures. 

Concrete Floors and Walls 

Concrete walls are commonly used for seat walls, retaining walls, decorative exterior and interior finishes, and other structures. Concrete can also serve as a flooring material. Concrete floors can finish well using modern technology, creating smooth and appealing flooring. Concrete floors, perhaps more than any other material, offer an array of materials for applications such as acid-stained painted, radiant floors, overlays, and micro toppings. 

Concrete flooring is also known as cement flooring. Concrete flooring is less expensive than other types of flooring and requires little maintenance. A dust mop is an option to clean properly sealed concrete flooring. 

GST on Rental Income from Residential Property in India

GST applicability on renting properties in India has been a source of concern due to continuous changes in the law since the implementation of GST. The rules for renting residential property under GST changed on July 18, 2022, a decision made by the GST Council at its 47th meeting. The CBIC has issued a new notification to clarify the scope of GST on rental income from residential property rentals. Let us look at the GST provisions on this topic. 

We will immediately clarify that renting an immovable property is considered a supply of service and is subject to GST at 18 percent. The CBIC recently issued Notification No. 15/2022- Central Tax (Rate), which goes into effect on January 1, 2023. To learn more about the notification in question, we must first examine the provisions on this subject in India since the implementation of GST.  

GST applies to residential properties until July 17, 2022. 

The entry at Sr.No. twelve of Notification No. 12/2017 – Central Tax (Rate) stated that the GST rate for “Services by way of renting of residential dwellings for use as a residence” shall be “Nil.” Accordingly, from July 1, 2022, GST was not in effect (whether registered or unregistered under GST). However, the legal position under GST changed on July 18, 2022. Please note that renting commercial property is always under the ambit of GST. 

GST applies to residential properties after July 18, 2022.

  • In its 47th meeting, the GST Council recommended that the government impose GST on a person who has given property to a registered person to rent residential property. 
  • As a result, the CBIC issued Notification No. 4/2022- Central Tax (Rate) on July 13, 2022, withdrawing the earlier allowed exemption from GST for those renting residential dwellings. This notification was made effective from 18th July 2022. 
  • The net effect of the above amendment is that beginning July 18, 2022, any person who provides services by renting residential property for use as residence to a registered person will be subject to the GST at the rate of 18%.
  • It is important to note that GST will continue to be exempt in cases where a residential property is left to an unregistered person after July 17, 2022. 

The obvious next question is, “Who will pay tax to the government for renting residential property to a registered person?” The reply can be found in Notification No. 5/2022 – Central Tax, dated July 13, 2022. 

The previous Notification, dated June 28, 2017, added a new entry 5AA to Notification No. 13/2017-Central Tax (Rate), which specifies services subject to GST under reverse charge. 

According to Entry No. 5AA, anyone who provides services to a registered person by renting residential property is subject to GST 18% under the reverse charge mechanism. 

In a nutshell, beginning July 18, 2022, if a landlord rents residential dwellings to a registered person (tenant), such tenant will be required to pay an 18% tax to the government. It should be noted that even if the landlord is registered for GST, the registered tenant is responsible for paying GST under RCM. This table will assist you in summarizing:

Residential Dwelling Rental Services

Landlord TenantGST applicabilityITC availability 
Unregistered Unregistered No GSTNA 
RegisteredUnregisteredNo GSTNA
Unregistered RegisteredGST payable by a tenant under RCMIf the property is rented for business purposes, ITC can be claimed.
RegisteredRegisteredGST payable by a tenant under RCM ITC can be claimed if the property is rented for business purposes.

How to Save Capital Gain Tax on the Sale of Residential Property

Capital gain is the increase in the value of an asset over time. The owner realizes this capital gain when the property sells. The difference between a property’s selling and purchasing prices is capital gain. 

Any profit derived from a capital asset will qualify as Capital Gains for income tax purposes and be subject to capital gains tax. The land is known as a Capital Asset, and as its value rises, the owner may realize significant capital gains upon sale. Nonetheless, it is worth noting that agricultural land in rural India does not meet the definition of a Capital Asset. As a result, no capital gains tax applies upon its sale. Let us look at how profits from the sale of land will be taxed and how we can save money on taxes. 

Short-term or long-term capital gains

The tax implications vary depending on whether the gains are short-term or long-term. Capital gains are regarded as short-term if you owned the land for up to 2 years (24 months) before selling. It will, however, be considered a long-term capital gain if held for more than 24 months. 

How to Calculate Capital Gains 

Short-term capital gains (STCG)

The Particulars Amount 
Total Selling Price (xxx)
Acquisition Cost (xxx)
Direct Sale Expense (xxx)
Exception Sections- 54B, 54D, 54G, 54GA(xxx)
STCG (Short-term capital gains)(xxx)

The only difference for Long capital assets is that you can deduct the Indexed Cost of Acquisition/ or indexed cost of Improvements from the sale price. Indexation is a way of adjusting the purchase price to account for the impact of inflation using the Cost Inflation Index (CII). This adjustment increases your cost base (and reduces your gains).

Particulars Amount 
Total Sales Price (xxx)
Acquisition Cost Index (xxx)
Direct Sales Expense (xxx)
Exemption Section: 54B, 54D, 54EC, 54F, 54G, 54GA(xxx)
Long-term Capital Gain (xxx)

What are the Tax Rates?

  • STCG is taxable income and taxable at the applicable slab rates. See the latest income tax slab rates. 
  • LTCG gets taxed at a rate of 20%, with an indexation benefit. 

How to save Capital Gain Tax on the sale of residential property

Section 54F (applying if the asset is a long-term capital asset)

If you use the proceeds from the sale of land to buy a house, you may be able to claim an 

exemption from capital gains tax if you meet all of the following conditions:

  • The exemption only applies to individuals or HUFs; it’s not open to corporations, LLPs, or firms. 
  • The new house you buy or build must be in India. 
  • Purchase the house within one year of the land sale date or two years after the sale date. 
  • Build one house within three years of the date of the land sale. 
  • Do not sell the house within three years of purchasing or building it. 
  • You should only own one residential house on the transfer date, excluding the new one. 

If you meet these requirements and invest the sale proceeds in the new home, you will not be subject to capital gain taxes. An exemption is proportional to the amount invested, which is the cost of the new house multiplied by the capital gains/ net consideration. 

By Investing in Capital Gains Account Scheme 

Finding a suitable seller, arranging the necessary funds, and completing the vital paperwork for a new property can be a stressful and time-consuming jobs. Fortunately, the Income Tax Department is aware of these constraints. 

If you need to invest your capital gains till you file your income return (usually on the 31st of July), you may deposit them in the Capital Gains Account Scheme (CGAS). And claim this as an exemption from capital gains in your return; you will not have to pay tax on it. 

54EC (applicable if it is a long-term capital asset)-Purchasing Capital Gains Bonds 

What if you never intend to purchase another property? It is pointless to invest the money in a Capital Gains Account Scheme. In this case, you can still save taxes on your capital gains by putting them in the following bonds:  

  • Rural Electrification Corporation Limited bonds, also known as REC bonds, 
  • Bonds issued by the National Highway Authority of India, or NHAI. 
  • Power Finance Corporation Limited bonds, also known as PFC bonds, 
  • Indian Railway Finance Corporation Limited, or IRFC, issued bonds. 

These are redeemable after five years and cannot be sold within three years of the house’s sale date. 

You have six months to invest in these bonds; however, to claim this exemption, you must invest before the return filing date. The Budget for 2014 has specified that you are allowed to invest a maximum of Rs 50 lakhs in these bonds in a financial year. 

Studio Apartment in Bangalore for Rent without Deposit

Millennials relocate to metropolitan cities in search of a better way of life, and most individuals have one thing in common: they are all looking for rental housing. Living in a studio apartment is a new trend on the market. Studio apartments are becoming increasingly popular. 

It is difficult to find a rental property that is both affordable and spacious in cities such as Bangalore. Given all this, living in a studio apartment might be a wise choice. 

Studio apartments in Banglore have a room, kitchen, and bathroom, so they’re ideal for bachelors or live-in couples.  

But if you have not decided yet, here are some studio apartment pros and cons to help you make a better decision:

Pros of renting a studio apartment in Bangalore 

  • Studio apartments are slightly less expensive and are ideal for those on a tight budget. 
  • Studio apartments are a low-maintenance investment that is simple to furnish and maintain. 
  • Because studio apartments are small, they help you save money on other expenses like lighting, cooling, and heating. 
  • Studio apartments usually sit in urban areas near commercial hubs and transportation options. As a result, residents of such flats benefit from the advantages of location and connectivity. 

Cons of renting a studio apartment in Bangalore 

  • They are not for everybody, particularly couples planning to start a family. 
  • They have room for decoration because too much furniture can make the space appear crowded. 
  • Because of limited space, socializing in studio apartments can be difficult. 
  • Studio apartments in Banglore can be claustrophobic for people unaccustomed to living in small spaces. 

You are in luck if you are looking for a studio apartment that needs little space, money, services, or amenities. The amenities in Bangalore’s studio apartments for rent will leave you wanting more. Continue reading to learn more about the facilities. 

You can have a fulfilling experience while getting a fully furnished room. Regardless of changing preferences, everything comes down to affordability. Given their tight budgets, millennials prefer living in affordable and convenient housing. You can enjoy all of the luxury and amenities of a studio apartment for rent in Bangalore at an affordable, all-inclusive rate. A studio apartment in Banglore uses technology to improve security in rental homes, such as biometric cards, facial recognition, CCTV, sensors, and so on, making it easier for the residents. 

If you are looking for a studio apartment for rent in Bangalore, this is the place to be. Whether you’re a bachelor, a working individual, or a live-in couple, these studio apartments are for anyone seeking a suitable lifestyle on an affordable budget. 

Prime Commercial Property for Sale in Noida: Best Property Deals

Purchasing commercial real estate in Noida has grown in popularity recently for several reasons. More and more people are considering commercial investments in terms of potential capital growth and steady rental income. Since Noida is a commercial hub, many job seekers flock there, which increases residential investment. Due to their interdependence, commercial real estate demand has unavoidably increased. 

However, commercial projects must sit in a way that will encourage substantial business or investment growth. The place to invest in commercial real estate is in a well-planned city like Noida, renowned for its state-of-the-art infrastructure and superior connectivity. A wise choice is to invest in Noida commercial real estate. There are a few things to think about before making the choice. 

Noida is the center of commercial real estate investment. Everyone can commute easily because of the metro’s presence and the wide streets connecting this neighborhood to other areas of town. It is beneficial for networking when multinational corporations with significant corporate offices advertise their presence here. For those who live and work here, the city’s presence of shopping malls, restaurants, banks and ATMs, reputable healthcare facilities, and schools makes life simpler and more convenient. It is a bustling area with lots of traffic, making it a forward-thinking choice for a successful investment. 

Demand from the Market: Noida stands out as a densely populated area with a sizable residential component, which enhances the benefits of commercial real estate by increasing profits and reducing the likelihood of vacancy. A large catchment area ensures high rent and capital returns because such locations generate demand for commercial or retail setups. 

Maintenance must be a practical cost-cutting measure when purchasing a commercial property.  

High maintenance costs could deter investment. 

Real estate is one of the safest and most effective investments. It is an investment type whose prices don’t change daily, making it a largely dependable means of funding. Land, houses, and commercial buildings are the three main kinds of property in the highest and most steady demand. These three investment categories all guarantee a return on your money. 

Commercial property

Commercial real estate is experiencing rapid growth in demand. Corporations, stores, and offices are all based on this kind of commercial real estate. Commercial real estate is anything not used for residential purposes and serves businesses. Real estate is owned for commercial purposes in any property, to put it simply. 

Types of commercial real estate

  • Office Space: Office space is also in high demand because it can house multiple tenants. Given its location and style, the property might rent to many people. Typically, it is easy to find tenants for office space. 
  • Multiple families: Multifamily real estate is known as real estate that has multiple residential units. The simplest way to turn this into commercial income is to rent the apartments. It is the easiest next step for investors looking to enter the office real estate market. The main advantage of owning and renting multifamily real estate is the multiple income streams from the various families residing in the residential units found on it. 

Further subcategories of multifamily real estate include duplex/triplex/quadplex, mid-rise, high-rise, and apartment buildings, as well as senior housing and assisted living facilities.  

  • Hospitality: Tourists and those seeking relaxation make up the majority of the clients for hospitality real estate. Accommodations in this category include hotels, resorts, theme parks, and bed-and-breakfasts. Hospitality real estate includes but is not limited to, low-cost hotels, extended-stay hotels, full-service hotels, limited-service hotels, short-term rentals, etc. 
  • Retail: Real estate shops that deal in business-to-consumer (B2C) sales of goods and services. For the benefit of the clients, these properties sit in the heart of the town. Buildings like neighborhood shopping centers, regional malls, neighborhood retail centers, and power centers are examples of retail real estate. 
  • Industrial: Real estate has grown significantly over the previous economic cycle and is relatively easy for investors due to its low entry cost and flexibility. Commercial production and manufacturing facilities, among other industrial activities, are based in industrial areas. Cold storage, showrooms, heavy manufacturing, light assembly, bulk warehouses, and flexible warehouses are a few of the different types of industrial real estate. 

If you are interested in purchasing a commercial property for sale in Noida, then Propertywala can help you out, as we have 367 commercial properties for sale in Noida in the range of Rs. 2.5 lakhs to Rs. 18 crores. We can help you find commercial properties for sale in Noida in popular areas like Sector 62, Sector 140 A, and Sector 75. 

Commercial properties for sale in Noida

Sector 62 is the best commercial property in Noida. The amenities and services that ITHUMS 62 offers are unmatched by any other property. It is an excellent location. Within a 2-kilometer radius, there are good hospitals, restaurants, markets, ATMs, banks, and offices nearby. Noida’s Sector 62 is a prime location for corporate offices, as it is the center for business in related industries like banking, entertainment, and education. It also has the best connectivity to Greater Noida and Ghaziabad via the Delhi-Meerut Expressway, FNG, and other wide roads.

Sector 62 serves as the center of the IT and ITeS sectors, along with other related service industries, making it more than just a sector in Noida. The fact that it serves as the hub for numerous educational institutions, such as playschools, high schools, and institutions of engineering and management, is also well known. It even has a Noida center at IIM Lucknow. 

The city center of Noida and all other areas are close to Sector-62. It lies early near Indirapuram and is well-connected to Delhi via the DND and NH24. Additionally, work on extending the Metro to Sector-62 will soon begin as all necessary approvals have arrived. 

Institutional businesses dominate Sector 62. Sector-62 is even more exclusive because of the limited residential areas that are present there. 

Property tax for buyer

India is the world’s second-largest country by population and one of the most rapidly growing economies, making it a hotbed of real estate investment activity. The Indian real estate market is estimated to be worth US$180 billion and is expected to grow to US$1 trillion by 2030. The Government of India levies taxes on real estate transactions. 

Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax Deducted at Source (TDS) on the property is applicable when the value of the property is more than Rupees 50 lakhs. The buyer is required to deduct 1% of the value of the property as TDS, which is to be deposited with the Income Tax Department. Then submit TDS online by the 30th of next month in which TDS is deducted. Buyer is not required to take a TAN. Buyers can fill the form 26QB available on www.T I N – N S D L.com and deposit the government TDS. The buyer is also required to provide the seller with a TDS certificate in Form 16B as proof of payment. It is applicable on all properties except agricultural land.

Let’s have a look at some of the points to be noted:

  1. TDS is calculated on the base amount excluding GST.
  2. If the amount is paid in installments by the buyer, deduct 1% from each installment.
  3. In the case of a home loan, TDS is deducted at the time payment is made to the seller, not at the time when EMI is paid to the bank.
  4. In case there are two buyers and the individual purchase price is less than 50 lakhs but the combined purchase price is more than 50 lakhs, then TDS will be deducted.
  5. This is also applicable when the buyer is a nonresident Indian.
  6.  If the seller does not provide PAN, then TDS is to be deducted @20%.

In case of default to deduct or submit TDS

If the buyer does not submit TDS, the sub-registrar will not register your property, and you will not be able to get the property transferred to your name. TDS is a mandatory document and must be submitted to the sub-registrar. You can get a notice from the tax department as well. In some cases, officers can impose a penalty of Rs. 1 lakh as well.

If a buyer does not deduct TDS, the interest charged will be approx @1% per month.

And if a buyer deducts TDS but does not deposit it, interest can be around 1.5% per month.

Now the amount to be deducted would depend on the residential status of the seller, and the residential status of the buyer would not be considered.

TDS applicability if a Seller is an Indian resident

If the seller is an Indian resident, as discussed above, deduct TDS of 1% of the entire sale value and deposit the same with the government.

If the Seller is a Non-Resident Indian (NRI)

Here, TDS is to be deducted regardless of purchase price, it must be deducted on all properties.

This TDS will be on capital gains tax, which is the sale price minus the purchase price minus the expenses.

Nature of Capital GainsDescriptionTDS Rate on Sale of Property by NRI
Long-Term Capital GainsProperty held for more than 2 years20%
Short Term Capital GainsProperty held for less than 2 yearsIncome Tax Slab Rates of Seller

So, if the property is sold after 2 years, TDS will be deducted by the buyer at 20%. There will be a surcharge, for health, and education of 20%, depending on the budget of the property sale price. If the property is sold in less than 2 years, the nature of the capital gains will be short-term capital gains, and the TDS will be as per the IT slab for NRIs. 

The buyer will submit Form 27Q online and the TDS online. The buyer will give proof that TDS is deducted from the seller by giving Form 16A-NRI. If TDS is not deducted or deposited, the government will catch hold of the buyer, and the buyer must deposit it.

Affordable Housing, a priority for real estate

With an aim to achieve housing for all by 2020 and thus planning new flats in Delhi/NCR till 2022, finance minister on January 1 had stated that the affordable housing schemes will be given infrastructural status which will be a great deal for builders like Ashiana, Housing, Puravankara. This move will dip the costs for the builders and developers and attract most and more investors.

It would also mean a great hike in demand for loans which would be a step in the forward direction for housing finance companies like Gruh Finance, as well as Repco Home Finance.

“Infrastructure status to the affordable housing segment especially to Noida real estate will mean lower loan costs for the sector and thus aims at the margin issues that private players in this segment face,” said Nidhi Seksaria, Advisory Partner & Leader – Real Estate, BDO India LLP.

“The combined with interest subventions, this could be a big step in making apartments for sale in Noida more affordable,” he said.

Ashiana Housing was already trading 15 percent higher at Rs 163. On the other hand, Puravankara was up by 3 percent. The housing finance companies, Gruh Finance was already up by 1.4 percent while Repco Home Finance was up nearly 2 percent.
To achieve the targets set by the government in the affordable housing sector, the builder tends to increase their number of apartments with a certain decrease in amenities which consequence into lower costs. The competition has increased in the past quarter and thousand of new flats for sale in Noida are being constructed and ready for you to live in.

Gudi Padwa, a positive occasion for Pune’s low Real estate

With India’s economy finally growing its pace, Pune’s real estate market is now slowly witnessing a move in the forward direction in regard to the residential sector with a high rise in new residential launches. As prices are now stable and cheap after the announcement of the new set of rules in the Union Budget 2017, experts say that the auspicious occasion of Gudi Padwa will set a right tone in the minds of buyers to set their pace in investing new property in Pune.
With the storm of demonetisation slowly calming and settling down, Pune real estate is again starting to gather its momentum now. Gudi Padwa, according to experts is expected to give the sector a high increase in demands as residents of Maharashtra prefer home investments on the day. After slowly following this upward movement, Pune’s real estate market is expecting the past inquiries to be smoothly translated into sales. It has been noted that Pune has a huge unsold inventory of its real estate has slowed down since the past one and half years. Even those who cannot afford flats are inquiring for cheap 1bhk Flats in Pune in a relief of low-interest rates from banks and affordable schemes carried forward to them.
After the wonderful festive period, the real estate saw an exhausted inquiry inventory and a piled up sales record. This was due to the belief of auspicious occasion and the pocket-friendly schemes as after demonetization, real estate was one of the major sectors among many to be harmed by the cash crunch. Nevertheless, now as the cash flow in the bank is back to normal, the pace of remonetization has grown up faster than it was actually expected. Again, realty market in India has witnessed some big reforms like Benami Transactions Bill, RERA, or GST which are directly aimed at giving the sector of residential spaces transparency and more credibility.
It has been clearly seen in the country that a big investment like gold or property is considered more sentimentally than economically. Therefore the festive occasion added on to the sentiments and increased the sale to next level. Gudi Padwa, which marks a New Year in Maharashtra saw a huge increase in the sales as well as the new launched by reputed builders and developers of the state. Many people book their new homes or host housewarming parties in this occasion. Thus, Maharashtra real estate defines it as its level best on this day.

Increasing residential demand in the Silicon Valley of India, Whitefield

As it is known that there is a large workforce employed in the area of Whitefield, and preferring to live in the vicinity, is increasing up the demands for residential options here for the comfort of the employees.
Once known as a secluded area of Bangalore to the Silicon Valley of India, Whitefield’s story was shaped primarily by the IT Hub revolution that changed the sleepy landscape with Asia’s first tech park which rose up in 1994.
The excellent development that took place in Whitefield and the EPIP zone have seen over the years seems like a page of a fictional book with a perfect ending. Mammoth towers in glass and chrome stand tall amidst natural greenery which has been long preserved by the developers of these MNC acquiring most of the Bangalore properties especially in Whitefield. Many hitherto heavy manufacturing factories have given a big hand to making this a wonderful place with a lot of infrastructural possibilities and residential flats in Bangalore.
It is no wonder that after all these factors these localities in the vicinity of these ultra facilitated tech parks have largely begun to mushroom into elite gated communities of residential buildings. Villas the high priority choice by the people who want to live here and work in these high-end vicinity of business parks.
While the ITPB has singularly driven the demand for residential property options in its vicinity, the other tech parks and business parks in the EPIP zone too have drawn a high demand for housing options ranging from mid-segment apartments and high-end homes enclosed within well-appointed gated enclaves, to villas and plots.
A member of the committee, Jain has stated that Whitefield, Electronics City, and the EPIP zone was a major initiative taken by the government to create the place into something better which eventually turned out to be called as the Silicon Valley of India with a number of reputed Multi Nationals setting up their base here. This is also increased the demand for high-end flats and villas by the people who come here every year from all over the country to earn their lavish living.

Ghaziabad Growing its Infrastructure

Ghaziabad is popular for serving to the mid-segment and affordable housing segments. The very known housing clusters such as Kaushambi, Vaishali and Indirapuram are now a major part of Ghaziabad property in terms of increasing the real estate. Apart from this, the new upcoming residential locations include Raj Nagar Extension, and other areas along NH-24 which are beyond Indirapuram, and incorporates Crossing Republic Township.
The only thing bothering the developed locations is the lack of space for further high-level development. These places majorly include Kaushambi and Vaishali. The 1BHK Flats in Ghaziabad are now available to meet all the residents and is expected to have a healthy capital appreciation. The recent projects mostly kept its focus on upper-mid and premium segments offering them new upgradations which were beyond anybody’s expectations. The affordable residential clusters which are mostly 1BHK Flats and located in Raj Nagar, Shahibabad are in the average price range of INR 2,200-3,500 per sq ft. The upper end of the range is commanded by projects which are fully completed or nearly ending its construction in Crossings Republic, whereas the newly passed projects in NH-24 are in the lower price band of INR 2,200-2,600 per sq ft. The Raj Nagar Extension corridor on NH-58 is has a price range in between INR 2,600-3,000 per sq ft range.

Greater Noida real estate to work more on affordable housing

The Real Estate’s new Union bill spells happiness for Greater Noida homebuyers, as the recently rectified budget will give more powers to those who want to buy plots in Greater Noida and will also keep in mind the concerns of the builders to a major extent. The Real Estate Regulatory Bill directly aims at bringing transparency in the real estate sector. However, the announcements were being planned from a long time but the finance minister made the right time to announce all of it with the Union Budget of 2017. However, after demonetisation, this area has more supply for residential units and less investors but after the affordable housing schemes it is turning out to be the opposite. Most of the housing units sold in Greater Noida now have a lot of takers but have less supply. Therefore, after taking some major steps a mega plan has finally been sorted out to cater affordable housing for all till 2022.
The budget is expected to establish state level regulatory authorities RERAs with whom developers have to register projects above a certain size. If this will not be carried out, the builders will have to pay major fines. The developers will now state all facts like possession dates, construction quality facts public on their websites so as to give clearer picture. The developers will have to focus more and more on the affordable housing. They will now be providing 3bhk flats in the price of 2bhk.
All these new rules are expected to set transparency in greater Noida properties. The Big Impact is that this will prompt homebuyers to purchase property without the fear of being cheated. This will bring in more creditability to investors and the belief to invest in the real estate sector. This will also give a clear legal recourse in case of any dispute or delay in the construction.
This has helped people who were interested in buying in Greater Noida as with this law the problems of the dust made by demonetisation will settle down and more over the development which tends to cater the needs which was stalled for a long time is finally getting its breath back. This is helping the Greater Noida real estate sector to become more transparent and the work has finally resumed and the building which were left unreconstructed the last quarter, are now coming to an end to supply its consumers their dream home.

Godrej Properties to Raise Rs.700 Cr, Targets Growth

Godrej Properties, the real estate wing of Godrej Group, has announced its plan to raise Rs.700 Cr. The fund will be raised through rights issue.

MUMBAI: The real estate wing of Godrej Group, Godrej Properties, has announced its plan to raise a fund worth Rs.700 Cr. The fund will be fully utilized for developing its new projects. Godrej Properties plans to raise the fund through rights issue.

Aiming growth and for developing more number of realty projects, Godrej Properties plans to raise Rs.700 Cr through rights issue. Continue reading

Property Investment, a Good Marketing Trick?

As the builders are not able to find sufficient number of buyers for their projects, now they are coming up with options of property investment.

Sluggishness has spread its shadow on residential market. Home sales are falling down as there are no property buyers. What could the developers do to boost the buyers’ sentiments? Here we see how they are promoting their projects under the banner ‘best option for property investment.’ Continue reading

No Property Buyers, Realty Developers Troubled

Due to the sky reaching property prices, no property buyers turn up anywhere. As property buyers remain reluctant to buy out properties, the developers are struggling to offload their unsold properties.

The developers would not have imagined that the sky reaching property prices will have as disastrous as this. Many of the builders now have unsold properties at their hand as they are not able to find any property buyers. Continue reading

Vasundhara Enclave Fails To Attract End-Users

Though Vasundhara Enclave has every potential to attract the end-users, it fails to do so. Weak demand for housing units proves this.

DELHI-NCR: Though Vasundhara Enclave Delhi has been expected to become one of the hot residential locations, it still remains as an unpopular residential destination. Property prices are remaining more or less stable. Continue reading

Suburbs, better for long term investment

The growth of suburbs into cities assures better options of returns from the investment in these areas. Property investment in Suburbs is expected to be more attractive and productive than investing in metro cities.

Invest in suburbs for longer periods to gain better returns.

Invest in suburbs for longer periods, to gain better returns.

The growing demand for housing units has asked the real estate developers to develop more housing units outside the metro cities. Suburbs around all metro cities like Bangalore, Chennai, Delhi, Kolkata or Mumbai, or any other emerging cities, have seen spectacular growth.

Growth of these new corridors has provided the investors new options. Yet, the investors must approach such locations with a perfect view of investment. The tenure of investment is one of the main factors, that each investor should be careful.

It is never advisable to have in investment for shorter periods in any of the suburbs. If you plan to invest in any suburb, you should plan to invest for a quite longer time- so to say minimum three to four years.

On the other hand, the metro cities and other tier-I cities are more preferable for short term investment. If you invest for a short term also you will be able to gain bigger or higher returns. This is because the property prices are rocketing in all these cities. Moreover the growth potential of these cities is limited. This will assure sustainable returns to all the investors over the time. Continue reading

Domestic Demand Drives the Growth of Tier-2 Cities

Tier-2 cities of India have been witnessing a stabilized domestic demand for residential as well as commercial properties. In fact the domestic demand drives the growth of tier-2 cities.

Tier-2 cities will grow as a result of domestic demand

Tier-2 cities will grow as a result of domestic demand and not on foreign or NRI investors.

Unlike the big cities which witness the demand of NRIs and other HNIs, the smaller cities or tier-2 cities are growing due to the domestic  demand for residential and commercial properties. Property prices in these cities are more stable and not rocketing as in the other major cities.

When surveyed among the occupants of tier-2 cities, majority of them opined that the property prices will stand stable in these cities. However a few said that the property prices will be increasing by 70% by the next year. Continue reading

Housing Sector Likely to Have Infrastructure Status

Aiming to provide affordable homes to all the people, the union government is seriously pondering over the matter to confer infrastructure status to the housing sector.

Housing sector is likely to gain infrastructure status soon

Housing sector is likely to gain infrastructure status soon.

Economically poor and weaker sections of people are on the verge to own a home in near future. This will be possible for them if the union government confers the infrastructure status to the housing sector.

The decision is believed to be taken in the upcoming budget session of the parliament. However the matter is under the consideration of the Finance Ministry and Reserve Bank of India.

A senior official with Ministry of Housing and Urban Poverty Alleviation (MHUPA) said that it is likely that a favorable decision is taken on the matter. The official added that the ministry is planning to offer some income tax exemptions and service tax reductions to the housing sector.

Conferring infrastructure status is believed to boost the housing sector as it will provide easier access to funds. As a consequence, the availability of houses also will be increased simultaneously.

A recent study on the urban housing shortage revealed that in 2012 nearly 18.78 million housing units were short in India. A major share of the shortage was in the medium and low budget housing units.

Housing sector may get infrastructure status in the coming Budget session.

Housing sector may get infrastructure status in the coming Budget session.

The supply of housing units in the economically weaker section and lower income group fell sharply. The former witnessed a shortage of 10.55 million housing units while the number of the latter was 7.41 million.

The shortage cannot be mended by the government but only by the private developers who find it all the more difficult to construct cheaper homes due to the increased cost of construction. The land also has become so costly that added the cost of construction. Increase in the interest rates also affected the property prices.

The developers have been demanding for infrastructure status for the housing sector for a long while. MHUPA also raised the demand for the same. Conferring the infrastructure status to the housing sector will boost housing sector and the builders will be benefitting from this as it will enable them to own some tax exemptions and other tax benefits.