5 Essential Tips for First Time Home Buyers in India

Purchasing your first home is an exciting journey, but it can also be a complex process. Whether you’re buying a home for personal use or as an investment, here are 5 invaluable pointers to steer you in the right direction.

  1. Budget planning:

    One of the foremost considerations when contemplating a property purchase are your finances. Determine the extent to which your budget can be maximised. If you’re eager to purchase your dream home but have a few financial constraints, consult your bank or your CA for viable loan options.

  2. Current market prices in your preferred location:

    Acquiring knowledge about the current market rates is pivotal for effective budget planning. Relying on intuition alone won’t suffice; facts and figures should guide your decisions. Understanding prevailing rates not only aids in budget formation but also unveils enticing offers that might be available.

  3. Choose reputed real estate developers

    When purchasing a new home, your hard-earned money deserves the reliability and assurance that comes with selecting a trusted builder. Opting for the right real estate developer, with a proven track record and impeccable credentials, ensures quality construction and timely project delivery.

  4. Amenities

    Your choice of location significantly impacts your safety, happiness, and financial prospects. Thane has recently emerged as a self-sufficient locality, offering residents an exceptional quality of life. With substantial development initiatives underway, Thane along with Mulund and Ghatkopar have become hotspots for real estate investments. Consider the lifestyle you aspire to lead, and evaluate the property’s amenities accordingly.

  5. Approvals & Verifications

    Before sealing the deal on any property, a meticulous review of paperwork is paramount. Ensuring the absence of legal entanglements is essential. Verify the property’s registration under RERA (Real Estate Regulatory Authority) and authenticate its registration number through the official website.

  6. The Bottom Line:

    The journey of purchasing your first flat is a remarkable experience. To enhance this journey, include your family in the experience and adhere to this checklist of essential considerations before embarking on your property acquisition.

Reshaping Dilip Kumar’s Iconic Bungalow

In the heart of Mumbai’s illustrious Pali Hill, a cherished legacy is embarking on a remarkable evolution. The iconic bungalow that once cradled the legendary actor late Dilip Kumar Saab is poised for an extraordinary transformation into a high-end residential masterpiece by Ashar Group.

In this blog we delve into some of the finer points of this grand project, where timeless elegance meets modern luxury.

A Legacy Transformed: The Story Unveiled

The sprawling half-acre land, situated in the upscale Bandra suburb, is set to become an 11-storey haven of opulence. The construction area, spanning an impressive 1.75 lakh square feet, will soon give life to a luxury residential tower that pays homage to the late actor’s enduring legacy.

Crafting a Landmark: From Blueprint to Reality

Our masterful touch is turning architectural blueprints into a living masterpiece. Construction has already commenced. This ambitious venture promises not just luxurious residences, but a symphony of design and sophistication that redefines modern living.

A Vision Fulfilled: A Glimpse into the Future

As the construction progresses, the transformation of the iconic Pali Hill bungalow into a luxury residential tower and museum continues to honour Dilip Sahab’s lasting legacy.

Join us as we uncover the essence of this ambitious endeavor, where past, present, and future converge in a harmonious symphony of luxury, culture, and heritage.

Read More here

Off Plan property Exchange

Times Now

APB Live

Bollywood Hungama

Bollywood Bubble

Construction World

The Future of Smart Homes: Innovations & Integration in Real Estate

Imagine a home that not only responds to your every command but also capable of anticipating your needs, creating a seamless and personalized living experience. Smart home technology is revolutionizing the way we interact with our living spaces. From controlling your lights and appliances with a simple voice command to ensuring enhanced security and energy efficiency, the benefits it offers are known to increase security & comfort for homeowners/renters. Smart homes today, have an entire ecosystem of connected devices. Here are few notable features:
  • Voice assistants devices like Amazon Echo or Google Home help people control their smart home devices by speaking to them.
  • Home security systems for smart homes have cameras, motion sensors, door/window sensors, and smart locks to keep homes safe. These systems can be monitored and controlled remotely through phone apps.
  • Smart thermostats help homeowners save energy and money by allowing them to control their home’s temperature from anywhere. They can learn your preferences and adjust settings automatically.
  • Smart lighting systems let users control their lights using their phones. They can change the brightness, color, and schedule lighting for different times. Some systems can even adjust based on natural light and occupancy to save energy.
  • Smart appliances like refrigerators, washing machines, and ovens can be connected to a smart home network. This allows remote monitoring and control, notifications, scheduling tasks, and optimizing energy usage.
In the future, smart home technology will become even more integrated into homes. Real Estate developers have always been providing core infrastructure in homes so that a resident can choose to deploy a smart home system. Artificial intelligence will play a bigger role, with smart home systems learning from your habits and making suggestions. As technology advances, smart homes will become common and will offer even more convenience, efficiency, security, and personalization. They will transform the way we live and interact with our spaces.

Top Emerging Real Estate Markets in India

Real Estate Scenario in Nashik

The Indian real estate market has witnessed a surge in growth recently, driven by factors like urbanization and robust economic expansion. While cities like Mumbai continue to be hotspots, several emerging markets are now taking center stage. In this blog, we will explore the top emerging real estate markets in India and discuss key factors driving their growth, as well as provide investing tips.

Overview of the current real estate market in India

India’s real estate sector is transforming due to favorable government policies, increased foreign investment, and the rise of affordable housing. The implementation of the RERA – Real Estate Regulation and Development Act, 2016 has brought transparency and accountability to the sector, boosting investor confidence. Additionally, the growing middle class, rising disposable incomes, and urbanization have also fueled demand.

Key factors driving growth in emerging markets

  1. Infrastructural development – Cities with improved connectivity, transportation networks, and planned smart cities
  2. Economic growth and industrial development- Emerging markets with thriving industries, such as information technology, manufacturing, and services, witness increased employment opportunities, and demand for housing and commercial spaces.
  3. Affordable housing – The government has made homeownership accessible to a broader segment of the population.

At the 5th CII Real Estate Confluence, Mr. Ajay Ashar- CMD, Ashar Group and Vice Chairman MITRA – enlightened the audience with pertinent facts and statistics affecting the infrastructural and real estate scenario of Maharashtra. India’s GDP has been healthily growing at 5 to 6 per cent over the past 30 years. The Indian government has also been focusing on 8 key verticals: healthcare, housing, infrastructural development, agriculture, waste management, sustainability, technology and industrial growth. Currently, development of road networks is underway. For Maharashtra, approximately 3,58,000 crore rupees has been allocated for around 3,000 kilometers of expressways that are planned to be built.

Regions experiencing significant development

Thane: Thane is known for its ample green space and natural elements like its beautiful lakes. The vicinity to Mumbai is advantageous, and it is equipped with top-class hospitals and educational institutions.

Navi Mumbai: Widespread transport networks have been built which are convenient and increase connectivity. It offers relatively reasonable property rates as opposed to the main Mumbai city, and has a high standard of living too.

Pune: Pune has emerged as a top real estate market due to its strong IT and manufacturing sectors, young workforce, affordable housing options, and favorable investment climate.

Chennai: Its booming IT and automobile industries, strategic location, and planned infrastructure projects make it an attractive market.

Hyderabad: The city’s infrastructure development, proactive government policies, and affordable property prices make it worth considering.

Tips for investors

  1. Research: Gain a deep understanding of market dynamics, growth potential, and upcoming developments.
  2. Location selection: Choose areas with good connectivity, proximity to commercial hubs, educational institutions, and essential amenities.
  3. Developer reputation: Invest with reputed developers known for timely delivery and quality construction to minimize risks.
  4. Rental income potential: Consider markets with high demand for rental properties to generate regular income.
  5. Long-term perspective: Have a clear investment strategy and patience to reap benefits.

Conclusion

India’s emerging real estate markets present numerous opportunities for investors and homebuyers. By conducting thorough research, selecting the right location, and having a long-term perspective, investors can capitalize on the potential and reap rewards. Make sure to carefully and calmly consider everything important to you, and you will have made the right choice.

Tips to buy a new House.

Tips to buy a new House.

If you have just started your work/job and want to save money, it’s more than likely you may buy a house soon. Of course, paying rent each month is not preferable, but giving an EMI for your new flat is a better option. Living at your own house brings unparalleled happiness.

Although there are so many alternatives for real estate, you should be careful in your home selection. There are always tips that can help you make a more intelligent decision, whether you’re buying a 1 BHK in Thane or 1 BHK in Kalwa, or a larger home or apartment. This article will provide you with some concise, high-quality advice for your first home purchase.

Know our needs – 

Make sure you are aware of your demands before choosing a flat or flat for yourself. You ought to be aware of all the regulations. You can be sure that you select a house in this manner that meets your needs. What’s the point if you subsequently regret making a hurried decision that you now regret? So, be sure to select a home that meets your needs. You could ponder things like:

  • How many rooms should the flat have?
  • Are the stand-alone or gated apartments acceptable to you?
  • What’s your spending plan? If the price is too high for you, can you afford it?

Whenever you inquire about such things, you would take a better decision for yourself.

Safety of the property –

Regarding the safety issue, you ought to take caution. You cannot take safety for granted because crimes are always being committed. Search for the building that has proper guards, watchmen and CCTV cameras. This will allow you to confirm that the flat you are buying is secure and not at all close to a crime hotspot. Afterall, there is no point in choosing to live with your family in a bad or unsafe neighborhood. Hence, be cautious when it comes to safety. You would choose wisely and safely if you compare different houses with different localities.

Facilities and Environment – 

The facility that come with the apartment should also be looked into. How is the society you are moving into doing? Is it tidy and roomy? What about the building’s amenities? Is there a balcony and sufficient windows in the apartment? You must keep a check on these matters, or you risk getting stuck later. As you’ll be living in the new flat for at least a few years, you should investigate the building’s and flat’s surroundings. As a result, inspect and spend a day in the flat or building you are considering buying. Check to see if you can live there happily and safely.

Conclusion –

Make sure to keep all these suggestions in mind whether you’re looking for a 1 BHK flat in Kalwa, or 1 BHK flat in Thane. When you carefully select your property, there is nothing to regret in the future.

Top three localities to buy real estate in MMR

Blog - Top three localities to buy real estate in MMR - Ashar Group

Real Estate Scenario in Nashik

Referred to as the City of dreams and the nation’s financial centre, MMR is home to some of the costliest real estate properties in India. Real estate properties in Mumbai have been increasing for a while, and since 2022 things have only gotten better. Most homes in this region are ideal real estate investments and their value is only expected to rise. Below are the top three places to invest in Mumbai!

THANE
Home-buyers have been increasingly looking for affordable homes and have been moving to multiple developing areas of Thane. Along with Mumbai, Thane is connected to several other cities, including Kalyan, Bhiwandi, Vasai-Virar, and Mira Road. It has one of India’s best transportation systems, including roadways, railway and metro lines. Thane has two upscale neighbourhoods: Ghodbunder Road, Majiwada, and Pokhran road 1 & 2. These areas are hubs to several corporate offices, shopping & entertainment centres, and other services, attracting job seekers, and multinational corporations.

Although Thane’s real estate costs are considerable, they are not as costly as those in Mumbai.

We all know that Thane has gained prominence as a result of its role as a transportation hub for the nearby suburbs’ Central and Trans-Harbour railroads. Infrastructure in Thane has seen an increase in the past 10 years. Residential development has increased as a result of the growing commercial demand. The construction of Metro 4 (Wadala-Thane-Kasarvadavali) and Metro 10 (Gaimukh-Shivaji Chowk) by MMRDA will increase the demand for real estate in Thane and raise the price per square foot. Due to its excellent accessibility, 1 BHK Flats in Thane has long been a favoured choice among buyers and major builders. Buy your next 1BHK from Ashar, one of the best builders in Thane.

BANDRA

Bandra West is known as the “Queen of the Suburbs,” and is one of Mumbai’s best neighbourhoods and sought-after locations for investing in residential real estate. There is a fair balance of contemporary homes and old-world elegance. Bandra is the place to be, with stunning residences from the Portuguese era, antique cottages, and multi-story luxury apartments in Bandra giving the best amenities.

 Few years ago, Bandra experienced a spike in real estate prices. Old, outmoded buildings have been converted by developers into brand-new, opulent multi-storey residences with a variety of contemporary conveniences. The address of Bandra is itself quite a blessing. 

The start of the western suburbs is Bandra and is well connected to the rest of the city. With the Bandra-Worli Sea Link connecting South Mumbai to the northern and eastern parts of the city, and the Western Express Highway (WEH) connecting Bandra to Santa Cruz-Chembur Link Road (SCLR), it has eased connectivity. Metro Line 3, The Bullet Train, and the Coastal Road are examples of upcoming infrastructure.

The advantage of Bandra’s location is that it is close to commercial centres like BKC and Santa Cruz, as well as having additional access to Thane and Navi Mumbai through local trains and WEH. While having the most expensive real estate In Mumbai, the location is perfect from an investment standpoint when it comes to purchasing real estate. 

GHATKOPAR

Over time, Ghatkopar has become one of Mumbai’s most in-demand neighbourhoods. The cause of this is linked to a wave of infrastructure improvements that have caused a sharp increase in the demand for housing in the area. The Mumbai Metro has also eased commute in the area. 

The area is close to the Eastern Express Highway and has good access to roads and railways. While the distance to the airport is only seven kilometres, it is 20 kilometres to the Chhatrapati Shivaji Railway Terminus. Ghatkopar West is close to the urbanised neighbourhoods of Santacruz, Khar, and Juhu and has easy access to Thane. Various public transport facilities have eased access to these locations. Along with these advantages, the neighbourhood also has convenient access to other areas of Mumbai via Lal Bahadur Shastri Road (LBS), Tilak Road, and Mahatma Gandhi Road. The Sion-Panvel Highway connects Navi Mumbai and Ghatkopar West. In addition, the neighbourhood has a metro connection to Andheri in Mumbai. The metro station next to the route makes accessing the Western Expressway Highway easier.

The social and governmental infrastructure in Ghatkopar is excellent. In the area, there are numerous reputable schools, institutions, and medical facilities. The site is undoubtedly one of the best options for real estate investments with a strong rental yield. The forthcoming Colaba-Bandra-SEEPZ metro would enhance Ghatkopar’s infrastructure even further and will also enhance the value of each upcoming porperty in Ghatkopar. Improving the area’s connectivity to Churchgate will raise property values along the nearby corridors. Along with having solid infrastructure and connections, the area has seen a consistent YoY increase in property values. Ghatkopar may be the best option to invest in a region that gives real estate a strong rate of capital growth.

With the recovery of the Indian economy post the pandemic, real estate has been skyrocketing. However there is no doubt that MMR remains the dream for many home-buyers and investors. From premium bungalows to affordable apartments, the city has a lot to offer. Now is the right time to invest in these profitable realty areas for the long-term.

Premium Customised Homes in Pali Hill

Real Estate Scenario in Nashik

An expanse of green scapes, small bungalows set amidst trees and gardens overlooking the coastline, Bandra’s languid atmosphere has almost welcomed everyone. With the arrival of the Bandra-Mahim Causeway in the mid-1800s, the connectivity of this suburb to other parts of Mumbai lent to a different charm and opened the doors of exploration.

A place of varying people and cultures, Bandra has seen glory in all forms. Home to many superstars and artists, the locality has only grown in the past few years. Having the best of amenities from hospitals, top-notch schools, and colleges, massive shopping markets, it’s everything one needs in a place to settle down in. Bandra is one of the most expensive areas in Mumbai, luxury streets such as Pali Hill, Carter Road, etc. have sky-touching rates. However, luxury demands a higher price tag.

With the added amenities the locality has to offer, it is one of the most well-connected suburbs of Mumbai. Right off the Western Express Highway, Bandra is closer to the commercial hub Bandra Kurla Complex and also houses the Sea link connecting to the South of Mumbai.

When you weave through the lanes of Pali Hill, with the premium buildings shadowing the roads and the quaint bungalows lining the streets you instantly get a whiff of luxury and class. The poshest location of Bandra tells the story of heritage and luxury. The irresistible charm of the suburb rooting from its Portuguese and British heritage makes Bandra the Queen of the Mumbai suburbs.

To ensure a timeless experience for residents, Ashar Group has launched their ultra luxurious project Navroze in the heart of Mumbai – Pali Hill. This bespoke residence is OC received and ready to move in having 3 luxury customisable residences – The Sky Villas, The Mansions and The Suites of which The Sky Villas and Mansions are sold out. It also offers one a kind 6500 sq.ft grand residence – The Penthouse which has earned a distinction of one of the most elite properties in the country. With lifetime panoramic sea views, columnless floorplate, fully customizable homes and 500 sq.ft open to sky party deck, this luxury residence is truly a space reserved for the connoisseurs of elite experiences.

A visible landmark from the sea, this high rise is architectured to lend a graceful, timeless experience. The amalgamation of modern and classic interiors only adds charm to its extravagance. The fully-customizable space is enhanced with sky-decks, floor-to-ceiling windows, top-class security, dedicated access, and more. When you enter the gates of Navroze, you enter the world of luxury meant only for you.

Amidst the many iconic places Bandra has to offer, you find your fortress right at Navroze. Equipped with a lounge, gym, and swimming pool, you won’t feel the need to step out unless you wish to explore the quiet by-lanes of this rich suburb. Bask into a distinct view of the city, or meditate in the lush greens in the zen zone, Navroze is where serenity meets under blue skies.

Being one of the finest locations in the city, a visit to the site is by invitation only which only adds a hint of intrigue to this project.

Home loan benefits for women in india

WOMEN IN THE HEART & ON THE NAME PLATE

Benefits of being a Woman Home Buyer in India

More and more women in India are becoming financially independent. They are taking their rightful place as equals in the society, participating & making important decisions such as buying their own house.

As per the latest consumer survey by ANAROCK-LIC Housing Finance, 77% of women home seekers are looking to buy property for end-use, while the rest are looking at the same as an investment.

To make house purchases more profitable for women while fulfilling its larger goal of ‘Housing for All’ the Indian government offers several monetary benefits that women home buyers in India can avail of, if the property is registered in their name.

1. Stamp duty

The stamp duty on homes registered in the name of women is about 1%-2% lower as compared to men in most Indian states. E.g., if a woman purchases a property worth Rs. 50 Lakhs, she saves around Rs. 50,000 – 1, 00,000 on stamp duty, all the credit for this goes to the lower stamp duty scheme for women.

The stamp duty that in India for when a man pays v/s when a woman pays

State The stamp duty rate for men The stamp duty rate for women
Jharkhand 7% Re 1
Delhi 6% 4%
Haryana 6% in rural, 8% in urban 4% in rural, 6% in urban
Uttar Pradesh 7% Rebate of Rs 10,000 on overall charges
Rajasthan 5% 4%
Punjab 6% 4%
Maharashtra 6% 6%
Tamil Nadu 7% 7%
West Bengal 5% in rural, 6% in urban, (Plus 1%, if the property cost is more than Rs 40 Lakhs) Same
Karnataka 5.6% 5.6%
Note: Charges are indicative and subject to change.

2. Home Loan Benefits for Women

Did you know? 

Women are the favoured applicants for a home loan. They are known for having a better track record. Lenders find them more reliable, hence a woman’s chances of being approved for a home loan are higher.

Financial lending institutions are encouraging home buying behaviour amongst women by offering specialised schemes and lower interest rates.

Even a minimum subsidy of 0.05% to 1% on home loan rates significantly impacts EMI. It adds up to a considerable amount in lowering down the EMI, thus making repayment stress free for women.

Here’s how much a women applicant can save on a home loan at a lower rate of interest as compared to others:

Particulars Women Borrower Other Borrower
Loan Amount 50 Lakh 50 Lakh
Rate 8.30% 8.35%
Rate Difference 0.05%
Tenure 20 years 20 years
Monthly instalment 42,760 42,918
Total Principal Amount 50,00,000 50,00,000
Total Interest Amount 52,62,482 53,00,234
Total Amount Payable 1,02,62,482 1,03,00,234
Amount saved 37,752

2.   A. Women can choose longer tenure

Women can easily avail a home loan maximum of up to 30 years. With no charges levied on prepayment, women can lower their EMIs and save for other financial goals that they have planned for.

2.   B. Women can benefit as co-borrowers

Women can apply as co-borrowers with their spouses. Their combined income can offer them higher loan eligibility. Furthermore, as co-borrowers, they can claim tax benefits of Rs 1.5 lakh on the principal amount under Section 80C and Rs 2 lakh on the interest repayment. By availing of a joint home loan, a couple can claim the benefit which is a combined deduction of Rs 3 lakh on the principal amount and Rs 4 lakh on the interest component.

To understand more you can refer to the illustration below:

ParticularsHome loan tax benefits for IndividualsHome loan tax benefit for Couples*
Principal under Sec 80 CRs. 1,50,000Rs. 3,00,000
Interest under Section 24Rs. 2,00,000Rs. 4,00,000
Total DeductibleRs. 3,50,000Rs. 7,00,000

However, the couple should ensure that the sale deed/conveyance deed has the names of both the applicants as the owner of the property and women to be the main applicant.

2.   C. Women can avail higher loan amounts

Many lenders are increasing their sanctions to attract women borrowers. Benefiting from this, women can avail higher loan amounts from anywhere between Rs. 30 Lakhs to 3.5 Crore. This complemented with simple eligibility criteria, it’s a big ‘YES’ to be a woman home buyer in India.

3. Tax Deduction Benefits

Women can also avail tax benefits while taking a home loan. The limit is up to 3.5 lakhs covered under section 80 C for Principal repayment and Section 24 (b) on Interest paid. As per the Income-tax Act 1961, the borrowers can claim a deduction of up to Rs 1.5 lakhs under section 80 C and can claim a deduction of up to Rs 2 lakhs under section 24 (b).

Over & above the deduction of 24 (b), women can claim an additional deduction of Rs 1.5 Lakhs under section 80 EEA. This is only applicable to the loans sanctioned from 1st April 2019 to 31st March 2021.

Section Tax deduction applicable on Limit
80C Principle Paid Up to Rs. 1.5 Lakhs
80C Stamp Duty Rs. 1.5 Lakhs
24(b) Interest Paid Up to Rs. 2 Lakhs

4. Pradhan Mantri Awas Yojana benefits for women

As a step towards equality, and to empower women of all ages, classes, and marital status to apply for housing loans without facing any discrimination, the government has introduced the Pradhan Mantri Awas Yojana (PMAY) Scheme.

Under this scheme, a woman borrowing a home loan under Pradhan Mantri Awas Yojana Credit-Linked Subsidy Scheme (PMAY-CLSS) enjoy concessions on interest. Women borrowers from the economically weaker section (those earning up to Rs 3 lakhs per annum) and low-income group (LIG) category can avail of an interest subsidy of 6.5% (up to Rs 2.67 lakhs) on housing loans of up to Rs 6 lakhs. The subsidy amount is given upfront on the principal outstanding, thus lowering down the interest amount.

The benefits under PMAY-CLSS scheme are categorised on the basic income:

Income Groups Eligible Family Income
Economically Weaker Sections (EWS) Up to Rs. 3 Lakhs
Lower Income Group (LIG) Rs. 3,00,000 to Rs. 6,00,000
Middle Income Group 1 (MIG 1) Rs. 6,00,001 to Rs. 12,00,000
Middle Income Group 2 (MIG 2) Rs. 12,00,001 to Rs. 18,00,000

To avail of the benefits of the PMAY-CLSS scheme, women must meet the below guidelines:

  • At least one woman in the family must be registered as the owner of the new property, irrespective of the fact whether she is buying the property or not
  • Neither the woman, nor her immediate family should own a ‘pucca’ house anywhere in India. (You qualify, even if your parents own a home and you live with them)

Other Benefits under Pradhan Mantri Awas Yojana Scheme:

ParticularsEWSLIGMIG 1MIG 2
Annual IncomeRs 3 LakhRs 3 lakh to Rs 6 lakhRs 6 lakh to Rs 12 lakhRs 12 lakh to Rs 18 lakh
Repayment Tenor (in years)20 years20 years20 years20 years
Subsidy Interest6.5%6.5%4%3%
Loan amount for subsidy qualificationRs. 6 lakhRs. 6 lakhRs. 9 lakhRs. 12 lakh
Max. Property Carpet Area30 square meters60 square meters120 square meters160 square meters

All the above-mentioned benefits add wings to a woman’s dreams of owning a home. They go a long way to empower women both financially and economically.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

The transition of real estate – from real to virtual

THE TRANSITION OF REAL ESTATE – FROM REAL TO VIRTUAL

Modern Problems Require Modern Solutions – this statement proves to be true in today’s pandemic struck world where the best of the world comes to you at your doorstep, or rather fingertips, thanks to digitalisation. It is a part of almost every sector – be it work from home, education, e-commerce, banking, retail, tourism, or real estate.

When the pandemic-induced lockdown forced businesses to shut down physically, they began to look for other avenues to reach out to their customers. It was here that digitalisation proved to be a silver lining.

While property portals have been around for more than a decade or so, buyers mostly preferred to visit the property physically, inspect the location, meet the developer/seller and sign the agreement. Property portals & real estate mobile applications were mostly used to narrow down the property search, view property pictures, and contact the developer & seller.

But, this is now a thing of the past. Pandemic introduced the ‘new normal’ – digitalisation. People have now got used to the digital way of life where they can get everything from pin to property in a click. If not completely, at least more than half of the real estate transaction process is conducted digitally. This includes virtual property visits, availing bank loans, online payments, documentation submission, the initial meeting with developers & sellers through video calls etc.

This is the buyers’ side of the story, the dipping real estate sales and the pursuit to recover sales and to remain relevant developers & sellers are placing their bets on digitalisation & modern technology.

So, how is the digital transformation of the real estate industry taking place?

Promotion, eventually leading to sales:

Social media is a powerful tool that can help developers & sellers generating leads and converting them into buyers. Developers & sellers are striking while the iron is hot by strengthening social media presence. Aggressive organic & inorganic marketing on Twitter, Facebook, Instagram & LinkedIn is just one of the ways to bridge the gap between the buyers & them, and increasing their business.

Understanding buyer behaviour:

Developers & sellers are leveraging the power of the digital marketing funnel to zero down on their target audience by understanding their needs better concerning home buying preferences. Digital marketing funnel keeps a track of customers navigating the web pages. Properties are filtered as per the requirement to convert leads into sales.

Additionally, thanks to AI and Big Data, developers & sellers can accurately analyse customer behaviour, distinguish between hot & cold leads, thus saving substantial time, customer service costs, and understand buyer behaviour.

Harnessing the power of technology:

Building Information Modelling (BIM) is transforming how real estate projects are done. A 3D model-based software – BIM facilitates planning, designing, constructing & managing buildings for construction, architecture, and engineering professionals.

Chatbots are a great way for developers & sellers to stay connected with their potential buyers 24×7. Through chatbots, developers & sellers can offer handholding to customers through their entire property-buying journey, thus developing nurturing relationships & fostering sales growth.

Virtual walkthroughs or e-Visits are a thing now. Augmented Reality (AR) and Virtual Reality (VR) are proving to be a magic wand for developers & sellers. AR & VR provide a surreal home buying experience to home buyers. They empower potential buyers to take a tour of property virtually – anytime, anywhere without physically visiting it.

Making the most of this technology, Ashar Group too conducted virtual meetings and e-visits for its potential customers during lockdown which proved to be fruitful.

Seal the deal digitally:

Shifting from conventional paper-based processes to digital documentation has resulted in nearly 10 times faster turnaround time in the overall sales deal. Digital documentation eliminates – long hours to prepare legal documentation of purchase agreement, loan processing and payments and human errors. The expense incurred for the storage of documents was massive for real estate players, digital documentation will reduce that and make it secure. Lastly, digital documentation makes it easy for consumers to purchase property in another city, state, or country.

To summarise, as the saying goes “The only constant in life is change.” Digitisation – apart from being the silver lining in a dark cloud of the COVID-19 pandemic, is here to stay. Whatever the reason be – to enhance transparency, increase sales, ease the selling process, gain an edge, attract new buyers, or stay in touch with loyal customers – developers & sellers should continue to harness the power of digital technology even in the post-pandemic world. While doing so, they should not forget that old is gold, hence interpersonal relations or human intervention cannot be ruled out.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

The impact of COVID-19 Positive on Real Estate – Negative or Positive?

The impact of COVID-19 Positive on Real Estate – Negative or Positive?

Covid-19 came as a humanitarian challenge that changed the way people live, work, and play, maybe forever. It took away people’s lives and source of livelihood. The global economy saw one of the biggest downturns. There was a point in time when people were more scared of the pandemic-led lockdown than the pandemic itself, due to its devastating impact on the economy.

Real-estate, retail, finance, aviation and automobiles are the 5 sectors that are worst hit by COVID-19. Speaking of realty, last year when the nation went into a complete lockdown between March and May 2020, many new constructions stopped, sales took a hit, and new launches were postponed.

The pandemic brought in a domino effect on the realty sector. At first, the lockdown brought the construction activities to halt, then the fear of health & financial crises caused a mass exodus of migrant workers, the demand for social distancing & the sudden realisation of the importance of saving overspending led to negligible homebuyer enquiries and site visits.
Beginning June 2020, just when the realty sector started taking baby steps on the road to recovery through digital business strategies; and seeing a ray of hope through increased demand of virtual site visits, the country was struck by 2nd wave of COVID-19, this time, deadly than previous.

The cities where real estate activities have most suffered are Mumbai, Delhi, and Bengaluru amongst others. For instance, the Mumbai Metropolitan Region (MMR) in Maharashtra has witnessed a drop in property registrations. Experts say the recovery of the realty market in India could now prolong until 2022, and that it will be highly dependent on the way India deals with the second wave of Coronavirus.

THE OVERALL DAMAGE DONE – What reports say?

Going by a KPMG report, the real estate sector has incurred a loss of over Rs 1 lakh Crore since COVID-19 broke out, resulting in a serious liquidity crunch for real estate developers. The credit shortage brought down the residential sales from 4 lakh units in 2019-20 to 2.8 lakh units in 2020-21 across the top seven cities of India.

The overall residential demand declined by over 40 per cent in H1 of FY21, says the India Ratings and Research Private Limited (Ind-Ra) report. The agency believes that the sales will continue to decline until the pandemic is brought under control.

According to a report by Liases Foras, the pandemic-led lockdown cascaded the volume of unsold inventory from 15+ quarters at the end of FY-20, to 19+ quarters towards the end of H1 FY21. The volume of the unsold stock increased by an extreme dip in sales in Q1 and dampened recovery in Q2 2020.

IT WAS NOT WORKING ANYMORE FOR COMMERCIAL AND RETAIL REAL ESTATE

What simply existed as a concept in an organisation’s HR policies, now become a new way of life – Work from Home (WFH). The rise of the WFH concept led to the fall of the need & demand for office spaces.
According to a report by Cushman and Wakefield, the net leasing of office spaces declined from approximately 70 lakh sq. ft. in 2020 to around 35 lakh sq. ft. in Jan-Mar 2021.

In Q4, the immunisation drive by the Government picked up the pace, so did the Coronavirus cases. Thus delaying leasing & impacting leasing rates. The net leasing rates dipped by 33 per cent in 2020, and average commercial property prices declined by 7-10 per cent.

The demand for flexible workspaces such as WeWork & Awfis which had resurged in the last few months has declined since the second COVID-19 wave emerged. If the pandemic is brought under control soon, experts anticipate leasing 38 MN sq. ft. flexible workspaces in the coming year.

Speaking of retail real estate – data compiled by Statista says that retail mobility has declined by 55-60 per cent across India owing to the partial lockdowns and curfews across cities. Another factor contributing to this downfall is that people are no longer keen on visiting retail spaces – they can get everything, from food & clothes to entertainment delivered home, in just a click. Thanks to e-commerce and OTT platforms.

Looking at the other side of the grass, with WFH becoming a norm, residential real estate underwent a dramatic architectural change. Along with the routine bedroom, living room, washroom, kitchen & balcony, providing a dedicated WFH space has become a need of the hour in the upcoming projects.

DID THE LAW OF SUPPLY AND DEMAND AFFECT REALTY PRICES?

There are many points to be considered while discussing realty prices.

  1. While on one hand, during the 1st wave, some developers went all out to woo buyers by offering major discounts. We came across news such as:

    A 559 sq. ft. property of Hiranandani has been closed for Rs 86 lakh this month. A similar unit was transacted at over a Crore in MarchIn January, ready-to-move-in residential units – one in Ashoka Towers in Parel and the other in Omkar 1973 in Worli – were both available for around Rs 8.5 Crore. Then coronavirus struck & the same units were available in May for Rs 7.5 Crore and Rs 6.5 Crore.

    On the other hand, some developers continued to withhold prices due to limited profit margins. Unlike the first wave, the second wave of the pandemic has, so far, not impacted the prices of the residential market.

  2. Meanwhile, the pandemic-induced spike in prices of essential raw materials, like steel bars, cement, plastic, man-made polymers and resins, etc., are pressurising developers to hike the prices of new projects. The supply shortage is only making matters worse. There are chances that once the lockdown is lifted, we may witness minor hikes in property prices by the end of the next quarter, whereas we may see more significant corrections in prices by the end of 2021.

  3. During the 1st wave of the pandemic, people realised the value of owning a home for themselves and lucrative deals added fuel to the fire.In areas such as Maharashtra, where the stamp duty charges were reduced from 5% to 2% until 31 December 2020 and 3% from January 1 to 31 March 2021.

    Furthermore, RBI kept the repo rate unchanged at 4%, making home buying affordable by availing home loans for as low as 6.65% annual interest, which was in contrast with the average home loan interest rate of 8% in January 2020.

    While this is one side of the coin, COIVD-19 related constraints such as stay-at-home & social distancing, and delayed delivery of other support facilities, such as processing papers for applying for home loans, having the agreement for sale or flats registered, or reaching out to sales and marketing personnel to garner more information about the project are either discouraging buyers or coaxing them to postpone their home-buying plans for later. All of which is leading to a dip in sales.

    Although the vaccination drive seems like a silver lining in the dark cloud of COVID-19, the year 2021 is expected to remain challenging for the real estate sector.

THE DOMINO EFFECT

Iron & steel, cement, machinery are amongst the many industries that are dependent on the real estate sector. The pandemic inflicted heavy losses on them all during the year 2020. Approximately 250 SMEs reported losses that were accompanied by increased costs in 2020.

This was the condition during the 1st wave of the pandemic. The developers and manufacturers were more prepared and cautious during the 2nd wave. They made preparations such as installing labour camps, putting a shift-wise duty in place, and ensured adherence to COVID-19 protocols such as regular temperature checks, once-in-a-moth COVID-19 testing of labourers and installing sanitising stations on construction sites.

The government’s move of initiating a vaccination drive for those above 18 years of age will boost the construction activities as it will help the labourers to get vaccinated at the earliest. It will also make labourers feel safe & eventually reduce migration.

THE ROAD AHEAD

Post-phase-4 of lockdown, the realty sector slowly began its operations, and there came 2021, which seemed to be the year of recovery as COVID-19 vaccines were developed. But the happiness was short-lived as the pandemic’s 2nd wave gushed in, putting the developers and financial institutions in cautious mode. The resurgence of the pandemic has compelled financial institutions to avoid risky investments, adding to the woes of the real estate sector already suffering from a liquidity crisis. But it’s not all dark and gloomy for the realty sector like it’s said, “A smooth sea never made a skilled sailor” – Franklin D. Roosevelt. The realisation of the importance of owning a home in the consumers’ mind during COVID-19 can play an important role in increased residential property sales. Once the government accomplishes its goal to vaccinate its over 1.3 billion population and the fear of COVID-19 diminishes, there are high chances for the realty sector to experience market equilibrium. Points supporting this stamen are

  1. People may return to work, thus increasing the demand for commercial spaces;
  2. Increased e-commerce may lead to increased demand for industrial units to store inventory;
  3. Pandemic has turned many employed professionals into entrepreneurs, this may lead to a rise in demand for retail spaces;
  4. Virtual site visits have lured and made it possible for NRIs to invest back home;
  5. Low-interest rates (home loan interest rates are at below 7% now) and high tax exemption (rebate against home loan interest payment is as high as Rs 3.50 lakhs per annum) can make the option of owning a home attractive over renting;
  6. Many people, especially professionals who have permanently decided to return to their hometowns, who were earlier living on rent in Tier-1 metro cities like Mumbai, Bengaluru, Delhi etc. will look to buy homes, and finding employment in their hometown. Thus, increasing the demand for commercial, residential and retail spaces in Tier-2 cities.
Having mentioned that, here we are seeing the glass half full, but if we look at the half-empty glass, the pandemic has led to job losses and pay cuts, and the entire population is yet to be vaccinated. So we will be able to see a clear picture once the pandemic is tamed and the infection rate declines. Till then, it’s all about the wait-and-watch approach.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

Home Loans for NRI’s

Home Loans for NRI’s

Real estate in India is a perennial industry. Residential real estate for Non-Resident Indians (NRI), particularly, has a glorious future. Whether it’s a dream home or a lucrative investment opportunity, India has countless opportunities for you. And what’s even better? The hassle-free availability of home loans for the NRIs to benefit.

What is the procedure?

Applying for a home loan is simple in India. All you need to do is submit an NRI home loan application form to the bank. Indian banks have become widespread and increased their footfall overseas, too. You can submit your application directly to the bank or use an online application. There is an alternative method where you can also apply at a home branch by appointing someone as a Power of Attorney (POA) holder on your behalf. That way, you won’t have to come or wait till your next trip to India. However, if you issue the POA while you are not present in India, it will require a signature. This need to be performed in front of an embassy official for legitimate consideration. Once you submit the application form, the bank will take you through various terms and conditions and applicable interest rates.

Interest Rates and Conditions

RBI guidelines state: You are an eligible NRI only if you are employed or carrying out business outside India under the circumstances showing an uncertain duration of stay abroad. Thus, if you fall under this category, you can apply for NRI home loans in India. You’ll also have to present documents validating your income, employment, and educational qualifications.

Banks offer 70% – 90% of the property value as a loan, based on your qualifications and income, at an interest rate of 0.25% – 0.50%. The repayment has to be in Indian rupees through Non-resident External or Non-resident Ordinary accounts only.

How does this benefit you?

Banks are now offering home loans to NRIs at attractive interest rates. So, taking a home loan is always better than personal financing. Instead of engaging your savings in the purchase, you can invest that money elsewhere for better returns and manage the property-related expenses with the loan. Home loans for NRIs also have tax benefits, just like the home loans for Indian residents.

So, when you take a home loan, you get tax benefits, security, and freedom to invest your money elsewhere and earn profits.

Key features

Here are some of the most attractive features of Home loans for NRIs that will aid you in selection-
  • You can get loans for constructing a house, purchase a developed property, or renovating an existing property as well.
  • The process of application is simple, and the approvals are quick.
  • There is a flexible online process with precise application tracking facilities
  • Flexible prepayment facility with minimal fees
  • Better finance management
  • Tax benefits and money savings

Conclusion

It is evident from the above points, home loans for NRIs have become a cakewalk in recent times. The entire process requires minimal paperwork, and you may reap multiple benefits in return.

So, should you get a home loan to buy your dream house?

Well, if you are an eligible NRI, the answer is a loud, resounding yes. Getting a home loan is the best choice you can make while purchasing residential real estate property in India.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

Home Loan Tax Benefits

Why owning a home is beneficial tax-wise?

Buying a property is a big decision & investment, for which every one needs the support of a home loan. If one wishes to buy a 1 BHK in Thane, he will have to shell out between 60 lakh – 1 crore. To pay up the entire amount is not everyone’s cup of tea, more so, not even who can afford wishes to do so. In such a case, a home loan, added to accompanying home loan tax benefits come to the rescue. Not only does it make the home buying process systematic, smooth & easy on the pocket, it also brings along with it some additional tax benefits.

Home Loan Tax Benefits

Joint home loan

Lighter on the pocket, a joint home loan allows you to share the EMIs with your family member, friend or any other co-borrower. In case you lighten your financial burden, even more, you can add more than two applicants to the same loan, this will also make the repayment of the loan easier.

The tax benefit on joint home loan for co-owner are:

  • Each joint owner and borrower can claim Rs.2 lakhs interest deduction
  • A joint owner can claim an 80C deduction on principal repayment
  • Each joint owner can split costs of registration and stamp duty and claim an 80C deduction
  • Source: Grihahakti

Deduction under section 80EE and 80EEA

In the year 2016 & 2017, to increase the sale of flats and to make it easy for people to buy homes, the Indian government introduced a deduction under section 80EE. Section 80EE allows a deduction of up to Rs 50,000 for interest paid by first-time homebuyers for a loan sanctioned from a financial institution between 1 April 2016 and 31 March 2017. The government has extended the benefit for the FY 2019-20 which can be claimed until the housing loan is repaid.

Speaking of Section 80EEA, a deduction for interest payments up to Rs 1, 50,000 is available, which is over and above the deduction of Rs 2 lakh for interest payments available under Section 24 of the Income Tax Act.

Cumulatively, taxpayers can claim a total deduction of Rs 3.5 lakh for interest on a home loan, if they meet the conditions of section 80EEA.

For availing this deduction there are some eligibility criteria & conditions one has to adhere to:

Eligibility criteria:

  • The deduction is available only to individuals. If you are a HUF, AOP, Partnership firm, company, or any other kind of taxpayer, you cannot claim any benefit under this section.
  • Similar to Section 80EE, to claim deduction under Section 80EEA, you should not own any other house property on the date of the sanction of a loan.

Conditions:

  • A housing loan must be taken from a financial institution or a housing finance company for buying a residential house property.
  • The stamp duty value of the house property should be Rs 45 lakhs or less.
  • The individual taxpayer should not be eligible to claim deduction under the existing Section 80EE.
  • The taxpayer should be a first-time homebuyer. The taxpayer should not own any residential house property as of the date of sanction of the loan.

Conditions concerning the carpet area of the house property. These conditions have been specified in the memorandum to the finance bill, but not mentioned in section 80EEA:

  • The carpet area of the house property should not exceed 60 square meters (645 sq. ft.) in metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (the whole of Mumbai Metropolitan Region)
  • The carpet area should not exceed 90 square meters (968 sq. ft.) in any other cities or towns.
  • Further, this definition will be effective for affordable real estate projects approved on or after 1 September 2019

Under Section 24, homeowners can claim a deduction for interest payments up to Rs 2 lakh on their home loan, if or not the owner or his family resides in the house property.

If the homeowner has rented out the property, the entire home loan interest is allowed as a deduction.

If one can satisfy the conditions of both Section 24 and Section 80EEA, benefits under both the sections can be claimed.

It is however advised to exhaust the deductible limit under Section 24 first, which is Rs 2 lakh. Then claim the additional benefits under Section 80EEA. Therefore, this deduction is in addition to the Rs 2 lakh limit allowed under Section 24.

Source: Cleartax-80eea, Cleartax80ee

Deduction for stamp duty and registration

In India, a homebuyer has to pay stamp duty between 4-10% and a registration charge at 1% of the property value. Deductions are claimed on stamp duty and registration charge paid on property purchase under Section 80C of the Income Tax Act, 1961. The overall deduction limit under Section 80C ─ which offers rebate against a wide range of investments, including PF, PPF, life insurance, home loan principal etc. ─ is Rs 1.50 lakh in a year.

So, under Section 80C, a homebuyer can not only claim a rebate on his home loan principal but also on stamp duty, registration charge and other additional expenses. However, the limit stands at Rs 1.50 lakh in a year only.

Conditions apply to claim tax benefit on property stamp duty and registration charge under Section 80C

  • One has to be either an individual or part of a Hindu Undivided Family ('HUF')
  • One should pay the stamp duty and registration charge from his pocket, the amount shouldn’t be borrowed
  • The taxpayer can claim this deduction only in the year in which he has made the payment
  • The deduction is meant only for purchase and construction of residential house property, not on plot or land purchase
  • For a co-owned property, both owners can claim deductions while filing their respective Income Tax (IT) returns
  • This deduction can only be claimed on the new property and not on a resale property
  • The deduction will be allowed only if the purchase doesn’t include any payment towards renovation or repair of the property

Source: Proptiger

Home loan tax benefits of owning a second property

If you have bought a second property with the help of a home loan or other housing finance, you can claim a tax deduction on it too.

While deductions under Section 80C on the principal amount of the loan may not be available in the case of your second house, you can enjoy tax benefits on the interest component.

In other words, if the interest payable on the loan taken for the purchase of the second house was larger than the rent received, the remaining portion could be adjusted against your other income. However, now a limit of Rs 2 lakh has been imposed on such adjustment. The remnant portion of the interest, if any, can be carried forward for 8 successive years to be adjusted against income from house property only and under no other head.

In the case of self-occupied property, any additional income remaining after deduction of Rs 2 lakh can neither be carried forward nor adjusted against any other income.

Source: HDFC

Deduction on interest paid

Interest paid to your friends and relatives in respect of money borrowed for purchase, repairs or renovation etc. of a house can also be claimed under section 24(b). All you need to do is prove the actual usage of the personal loan to renovate your property to avail of the deduction. This can be easily done by establishing a linkage between the credit of the personal loan in your bank account and its actual use. Although you are not allowed to attach any document with your ITR, you still need to preserve the documents.

If you have not claimed the deduction on interest paid for a personal loan during the last year in your income tax return, you can do so this year by revising your ITR.

Source: Livemint

A guide to calculating and claim tax benefits

  • Calculate your gross income (Write down your annual gross salary)
  • Arrive at your next taxable income by removing the deduction amount
  • Calculate all your taxes
  • Consolidate your next tax
  • You can easily claim tax benefit under section 80C, 80EE, 80EEA of income tax on the same year of income tax paid

Source: ETMoney, Cleartax

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.