Future reforms in Indian Real Estate


Future Reforms in Indian Real Estate

By Evente Clinic

The Indian real estate industry is looking promising after a lot of reforms introduced by Modi government in its first tenure. With clear majority and mandate, the Modi government will strengthen all the sectors especially Real Estate.

Indian real estate is already undergoing a revival, as transaction volumes have picked up Y-o-Y to the tune to 45-60 percent in major Indian cities. A strong mandate will further instill confidence in the sector and contribute to building momentum.

We can expect a lot of reforms in the coming years in the real estate sector.

The RERA has been going good and now the government will try and streamline it further. A faster window will help in rationalizing the cost of development and make real estate more affordable.

One important discussion going for some time is on the taxes imposed on buying the property. The home buyers have to pay for the stamp duty as well as the GST. We should expect some reform where both the cost will be merged. This will give a further push to the industry by easing out the cost of development.

“A faster window will help in rationalizing the cost of development and make real estate more affordable.

We can expect some more reforms around affordable housing. It is the government’s dream, ‘Housing for all’ by 2022 and they will surely push for it harder after getting the second term. Providing big-ticket opportunities to both the developers as well as the investors in the coming year, affordable housing segment that was anointed with the infrastructure status in the Union Budget 2017-18, it is expected to grow at a high rate.

The PMAY which was originally scheduled to be ended by December 2017 has now been extended till March 2022 and includes the middle-class income group as well for the benefit of interest subsidy on home loans. Under the scheme, the carpet area of homes has been increased to provide for more interest subsidy by the Cabinet. An interest subsidy of 6.5 percent can be availed for a period of 20 years or during the tenure of a loan, whichever is lower by the low-income groups or economically weaker sections of the society.

The new government should emphasize on re-energizing the reforms related to infrastructure investment and land acquisition reforms. The government should take measures to expedite and streamline the environment clearances for the new projects, which is a two-stage process and takes two-to-three years. If single window clearance comes into effect then the timely delivery will improve and it will act as one more step in regularising the real estate sector, as approvals and more so timely approvals and simultaneously development of infrastructure around projects  are an integral part of real estate development, more simplification of processes, accountability, and efficiency on timely approval from relevant Government authority is must for industry to accelerate the pace of development and bring back demand in the sector .

The government should allow banks and HFCs to fund land purchase to help developers bring down the cost significantly, which in turn can be passed on to the buyers. In the absence of bank finance, developers resort to PE funding and other non-formal modes of funding to finance its land purchase which increases the cost of capital for them drastically.

With all these reforms expected from the present government, the Indian real estate industry looks to accelerate in times to come. Isn’t it best time to purchase the property?

Hyderabad as upcoming market for real estate investment


Hyderabad as Upcoming Market for Real Estate Investment

By Evente Clinic

Investments in land property, residential plot or farmlands are considered profitable options for a long-term perspective in India as well as across the world. Keeping this kind of popular interests of the masses, the Indian government has been proposing various policies like Real Estate Regulatory Act (RERA) and Real Estate Investment Trusts (REITs) to bring in favorable changes in the real estate sector.

The important point for investors to consider is that not all real estate investment is going to give you results. The most important point to consider when investing in real estate is – the location. If you are putting in your hard earned money in emerging cities you can expect some great returns in a short span of time.

One such city in India is Hyderabad. Realty analyst considers Hyderabad as the best city for real estate property investment. Its residential realty sector is broadly considered as low risk and high return avenues, because of its rapid development in education, job prospects, medical facility, ITes, hospitality, and other businesses.

The capital of Telangana is witnessing a real estate boom—when the property is sluggish in the rest of the country. It is the only major city in the country that can give you a good return on investment. Among India’s seven major cities, Hyderabad is the only one where property sales have grown—by 32% from the average of 2013-2014 to 2017, according to research by property consultant ANAROCK.

Namrata Pandey, Managing Director, Evente Clinic, says, ‘Hyderabad is one of the most preferred cities for NRIs to invest at present given the proactive government policy and infrastructural developments such as the Hyderabad Metro Rail, strategic road development and elevated corridors.’

Some of the reasons why Hyderabad is one of the most important cities to invest are –

Political Stability – The major reason is the political stability it gained in 2014 when it was separated from Andhra Pradesh after a long period of instability and uncertainty.

The growing industry – Lot of industries are being set up in Hyderabad, as a result, a lot of people are traveling to the city and settle there. As the population grows, demand for housing will increase. That will invariably push up prices.

“Investments in land property, residential plot or farmlands are considered profitable options for a long-term perspective in India as well as across the world.

Some of the development work which boosts the real estate industry are –

  1. Construction of the River Musi Expressway
  2. Additionally, the government also has identified 52 major junctions in the city to be developed as signal-free junctions
  3. Several underpasses are also planned from the Jubilee Bus Stand to Shamirpet-Turkapally, Uppal to Ghatkesar, Paradise Junction to Kompally and other locations across Hyderabad
  4. Some other prominent projects include the 20-acre Smartron Data Centre Campus, Aerospace Park SEZ, Gaming and Animation Park, Pharma City, and the Life Sciences and Medical Devices Park

Some areas to look out for are –

The IT-hub areas of Hyderabad- Gachibowli, and Hi-Tech are the premier areas for the commercial estate.

Nallagandala – From mid-range apartments to high-costing villas, Nallagandala has it all. Another major attraction of this location is the availability of several open plots offered by the Hyderabad Metropolitan Development Authority

Kondapur – There are several big attraction in this area – The Google Office is situated here! Kondapur has grown into a modern business hub in the last two decades. Infrastructure in the region is unquestionable – supermarkets, schools, medical facilities – it’s all easily accessible.

If you have any property requirement in Hyderabad, get in touch wit

Real Estate is still the most important investment vehicle


Real Estate Is Still The Most Important Investment Vehicle

By Evente Clinic

When done correctly, real estate is one of the most popular and profitable investments with a lot of potential for success. Real estate investing offers many advantages, and investors can enjoy a steady income flow that may lead to financial freedom.

With the introduction of new policies by the government, easing up of home loan regulations and the availability of affordable homes, real estate investments have become accessible to almost everyone.

Stock market versus Real estate – In real estate, the risk of loss is minimized by the length of time you hold on to your property. When the market improves, so does the value of your home, and as a result, you build equity. The risk never changes in the stock market and there are numerous factors beyond your control that can negatively impact your investment.

Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy” – Marshall Field 

Gold versus Real estate – Gold has traditionally been one of the most preferred investments for many Indians, however, that is slowly beginning to change. Today, real estate has several advantages over gold. One of the most significant benefits is that investing in real estate doesn’t require you to pay 100% of the total value upfront.

Tangible asset value – There will always be value in your land and value in your home. Other investments can leave you with little to no tangible asset value such as a stock which can dip to zero, or a new car which decreases in value over time. You can always sell your property when you own one. Unlike a stock, real estate never becomes worth nothing, even if the value drops.

Only positive growth – The land is limited and the world population is increasing with time. The demand is only going to grow. Result? The price of land will only increase. Over a long period of time, the real estate investment returns will only be positive.

It is for all – Real estate suits every need and budget. If you have a limited budget you can invest in land only. Even the price of houses/flats is such that a middle-class worker, as well as high-income businessmen, can invest.

Tax Benefits – Owning a property offers you a tax rebate. You can enjoy a deduction of up to Rs 1,50,000 from taxable income in a financial year as payment towards housing loan. However, an enhanced deduction of up to Rs 2 lakh per annum for a self-occupied property can be availed of if acquisition or construction of the property is completed within three years from the end of the year in which the loan is taken.

The bottom line is real estate investment has many benefits and is a great source of passive income. Because there is a large demand for properties, the value of real estate usually appreciates, increasing your potential for profit.

Do you have any other reasons why one should invest in the real estate? Share with us.