Gold remained a favourite investment for Indian households due to its liquidity and investment size flexibility. Equities are highly volatile and easily impacted by social, political, and economic upheavals. Real estate, always considered a long-term investment, gives portfolio stability, and appreciates with time. The physical nature of the asset, unlike stocks, also ensures limited wealth erosion.

The Bear of the 1st Wave of Pandemic

As the COVID-19 pandemic beset the world towards the end of 2019, global stock markets buckled and crumbled under unprecedented business uncertainties. India, an integral part of the global economy, also saw rough times – the BSE Sensex declined sharply by 29% between December 2019 and March 2020.

Gold, considered a ‘safe haven’ investment in time of turbulence, went northward and appreciated by 4%. Residential real estate prices in India remained stable as there were uncertainties about the execution, development, and sales of the projects. All sectors, including real estate, were challenged on how to navigate the tempest.

The Lethal 2nd Wave (April 2021 – June 2021)

The 2nd wave was more toxic in India, creating an acute healthcare crisis that claimed many lives and led to the re-enforcement of lockdowns. However, all asset classes stayed steady on the back of business continuity learnings from the 1st wave.

The stock markets exhibited resilience and investors again became active as many scrips were available at attractive valuations. During this period, the Sensex regained a growth trajectory after a minor correction of 1% in April 2021 compared to the previous month. Gold, though lower than the previous peak, appreciated again, while residential real estate remained stable.

The Post Pandemic Recovery (September 2020 till date)

The Sensex has recorded the highest appreciation in value and volume since the pandemic receded. The 3rd wave early this year caused a minor aberration and was short-lived. Gold continued regaining lost ground and would have remained in a stronger position had it not been for the global economic turmoil, geopolitical tensions, and supply chain issues.

Prashant Thakur, Sr. Director & Head – Research, ANAROCK Group, says, “In all this turmoil, residential real estate has exhibited exceptional resilience and is now on a growth path. The weighted average price across the top seven cities has appreciated. While price is a function of supply and demand, the favourable change of sales exceeding supply continued even during the pandemic. Analysis shows that the available housing inventory is on a steady decline.”

Performance Over Pre-Pandemic Levels

Source: ANAROCK Research. Data for the top 7 cities of India only.

Source: ANAROCK Research

(Prices are for BSP on SBUA. Data for the top 7 cities of India only)

Source: Compiled by ANAROCK Research

All assets have exceeded their pre-pandemic levels. Compared to the September 2019 levels, the BSE Sensex has recorded an appreciation of 52%, gold prices have increased by 34%, and residential real estate by 9%. These readings indicate that the worst impact of the pandemic is behind us. Economic growth, despite global uncertainties and the headwind of rising inflation, is likely to be robust.

“The COVID-19 pandemic reaffirmed the necessity of owning homes, since it provides more than mere accommodation – it also gives security in times of generalized financial instability,” says Prashant Thakur. “Gold and stocks, on the other hand, are volatile and subject to market risks.”

Currently, real estate activities are in full swing and both demand and supply are increasing rapidly. As residential launches increased by 76% and sales by 61% in H1 2022 compared to the pre-pandemic levels of H2 2019, housing is all set to witness further traction during the festive season, leading to further price appreciation.

Also Read: RBI Monetary Policy – Can the Housing Market Absorb Another Hike?

The post Equities, Gold Recover, Housing Gets Lucrative Again appeared first on Square Feat India.

Gold has always been a favourite investment vehicle of Indian households as many people transfer the yellow metal from one generation to another. The biggest advantage of Gold is that one can be flexible with investment size or the amount. Whether you have to put in Rs1000 or Rs 1 crore +, gold is accessible to everyone to buy. Also, gold is highly liquid.

Real Estate also scores high for investment purposes but in comparison to gold, real estate requires bigger funds and the buyer needs to have long holding power. Well, real estate can be an attractive long-term investment option where the property value increases over time. So, if approached in the right way, real estate can deliver you incredible profits.

The one thing that is common between gold and real estate is that both have a strong sentimental value for the Indian investors, with strong reliability and sustained nature. So how do you choose where to spend your money if you have a sizeable amount to invest?

Well, I would recommend real estate any day as there are various reason because of which real estate scores over gold. Let’s have a look at them:

Passive Income
Real-estate has the potential to create regular income with additional tax benefits.Whether residential or commercial, real estate has the potential to generate passive income for the investors in form of monthly rentals in cash, which gold investments cannot do.

Rate of Return
History suggests that real estate can give up to 15 percent of annual return, thanks to rising rentals. The value of property improves with the market and economy. On the other hand, gold is used to hedge against inflation, which means that the return from gold is in line with the inflation, which is aimed low by all governments. Also, gold shines, when your paper currency is depreciated, making the return nominal.

Volatility and Risk
Real Estate is a highly stable investment option, which comes with low risk. Property brings mental satisfaction due to it securing your future. On the other hand, gold is a commodity, which is traded on the bourses. It comes with higher volatility and risks of being stolen.

Expenses add to the Value
One may argue the property incurs the cost of maintenance and renovations, unlike gold which is altered at will. However, this cost not only appreciates your asset, but also allows you to take taxation benefits.

Long- term Value Creation
It is a no brainer that the value of real estate increases, the longer you hold it. It is simply because you can not create land and with rising population, the demand increases, which ultimately leads to price rise. On the other hand, gold can be purchased into digital form as well. This might reduce the risk of being stolen, but still is an intangible asset.

Aids the Economy
Real estate might require large funds, but survival of a lot of sectors depend upon it. From debt servicing, cement, housing finance, building materials and various others depend upon real estate at large. It also creates a large number of informal and indirect employment opportunities, serving the economy at large.

Tax Benefits
The investment in real estate comes with numerous tax benefits such as tax deduction on mortgage interest, operating expenses and legal costs, property taxes and depreciation.

The real estate investment is not only a safe investment but can generate better returns over a period of time while you are still earning a regular income if you are using it as a rental property. It is a great investment option for many reasons such as a fantastic tax advantage, and you can leverage it to build wealth and assets.

Annuj Goel is Chairman & MD Goel Ganga Developments.

Note: Views Expressed by the author solely belongs to him, not that of SquareFeatIndia.

Also Read: Will Real Estate continue to offer a profitable Return on Investment

The post Real Estate better option than Gold? appeared first on Square Feat India.

By Varun Singh

Builders across the city and in Mumbai Metropolitan region offering some good discounts.

These discounts include stamp duty cut, flexi payments and even golds in certain cases.

The offers are festive offers, some are till Gudi Padwa, some up to Akshay Tritiya.

These are auspicious days and many homebuyers make their booking during this period.

Developers are trying to make the most of this festive period.

Below are some of the offers that developers across the city are offering to homebuyers.

For their project Runwal Bliss at Kanjurmarg East and Runwal Forests at Kanjurmarg West, Runwal Group is offering a stamp duty of just 3% till Gudi Padwa.

For Runwal Pinnacle in Mulund West the group is offering zero floor rise along with stamp duty of 3% till Gudi Padwa.

For their 115 acre township Runwal Gardens at Dombivli they are providing zero stamp duty, zero floor rise and assured gift on every booking.

“Auspicious dates always create a positive sentiment and people tend to start something new or make new purchases on such occasions. Gudi Padwa is one such occasion and it usually leads to home buying. We have very attractive festive offers that will make home buying even easier this Gudi Padwa. Customers can enjoy stamp duty of just 3% at our projects in Kanjurmarg and Mulund. At our township in Dombivli, they can enjoy zero stamp duty in addition to zero floor rise costs and assured gifts on bookings,” said Rajat Rastogi, Executive Director, Runwal Group.

“Gudi Padwa being an auspicious occasion for home buying sentiments, the real estate market will see an enhanced consumer confidence index as owning a home has emerged to be a centre of gravity on grounds of safety, stability and security. It also offers steady rental income and long-term appreciation in comparison to other volatile asset classes. It is the right time for muted investment in real estate to return as the external market conditions are conducive for domestic as well as NRI investors in the backdrop of favourable policies by regulatory bodies, innovative payment schemes by financial institutions, lowered home loans interest rates and liquidity infusion by the government in form of fiscal impetus improving the economic climate. Amidst the resurgence of Covid -19 pandemic leading to the new normal way of living, the home-buying with branded developers offering quality, timely delivery and ready to move in option to save GST should be a priority for all the discerning home seekers in this festivity.”

 Dr. Niranjan Hiranandani, President, NAREDCO on Gudi Padwa

The Wadhwa Group, have introduced a new campaign for Q1 2021-22 under which they are providing a Zero Stamp Duty offer and flexi-payment plan during the period of Gudi Padwa for higher floor inventories in their projects Wadhwa Pristine at Matunga West, TW Gardens at Kandivali East & Dukes Horizon at Chembur.

Commenting on the campaign, Bhasker Jain, Head – Sales, Marketing & CRM, The Wadhwa Group says, “The residential segment looks very promising in the current scenario of Covid 19, as customers have now realized the importance of a well planned, well designed and a well ventilated home during the pandemic more than ever before. We are seeing a lot of traction for our projects as they are built on philosophy of ample height, light & air. This auspicious season we are providing our customers with a zero stamp duty and a flexi-payment plan on our select projects for the higher floor inventories.”

Considered an auspicious time to invest, Gudi Padwa has, over the years, set a trend among home buyers.

Rohit Poddar, Managing Director, Poddar Housing and Development LTD. On Gudi Padwa Offers, said, “Gudi Padwa is a very auspicious occasion to purchase your dream home. This year is a special year with very low home loan rates, great prices on homes and our self belief in human resilience. Prices are going up due to inflation and increased input prices so make use of this great opportunity to buy your dream home.”

Keeping in mind the mood, Vijay Khetan Group has come up with offers for homebuyers planning to invest in their project. In their residential complex, Krishna Residences located in Andheri (E) homebuyers can avail of an EMI holiday for 12 months along with No GST on their fully furnished Ready-to-move-in apartments. There are limited inventories available where the customer can experience streamlined processes and hassle-free buying and can avail the offers from Gudi Padwa till Akshaya Tritiya.

“With the EMI holiday for 12 months on Ready to move in apartments, we have relaxed the burden of Home Loan EMI’s for a year making customers rationalize during these hard times and just focus on the well-being of their families. Buying a home at auspicious times like Gudi Padwa is believed to bring prosperity and opulence for life. Therefore, homebuyers planning to invest wait for this time of the year and also look forward to lucrative deals and schemes in the market,” said Anuj Khetan, Director, Vijay Khetan Group.

Group Satellite is providing homes with No Stamp Duty, No GST, No Floor Rise and No Hidden Charges. A customer can pay 10% now (on or before Gudi Padwa) and no further payment till December 2021. This is a limited edition offer till Gudi Padwa.

For their project Satellite Elegance at Goregaon, the developer is providing Modular Kitchen, Air-conditioned homes, Payment Holiday and We Delay-We Pay for the customers.

Himanshu Jain, VP – Sales, Marketing & CRM – Satellite Developers Pvt. Ltd (SDPL) said, “We have extended the stamp duty benefit for our homebuyers and are offering no stamp duty, no GST, no floor rise and no hidden charges on our project Aarambh at Malad East. We are also offering a payment holiday where the buyer needs to pay 10% now and no further payment till December 2021. For our Goregaon project we are offering modular kitchen, air-conditioned homes, payment holiday and assured delivery before RERA deadline. This is the best buying opportunity for the buyers to buy their dream home and experience the best-in-class lifestyle within the city limits.”

Tridhaatu is offering a Zero Stamp Duty across all their projects if a person buys a property on or before Gudi Padwa. The developer is also offering a subvention scheme in their projects in Chembur and Matunga.

“With a slew of customer friendly measures like stamp duty reduction, all time low home loan rates, etc, many homebuyers got a chance to realize this dream. This Gudi Padwa, Tridhaatu would like to keep the goodness flowing. We are happy to offer zero stamp duty on all our projects for the festive occasion. Parallely to help in easing out the financial burden on the home buyers, we are also offering subvention schemes in our projects in Chembur and Matunga”, said Dhananjay Sandu, Co-Founder & Managing Director, Tridhaatu Realty.

Also Read: Here Are The Festive Offers From Builders

The post Why Are Builders Offering Gold & Stamp Duty Discounts? appeared first on Square Feat India.