With India’s housing market experiencing an ongoing boom, 2024 is projected to be the best year yet for home sales, with approximately 3 lakh homes worth ₹510,000 crore expected to be registered in top metros by the year’s end. This surge in sales has been largely driven by economic growth, improved infrastructure, and robust demand, leading to rising capital values.

As we navigate India’s ever-evolving real estate landscape, 2024 will continue to be a year of significant transformation. Luxury housing, particularly homes priced between ₹10 crore and ₹80 crore, witnessed a steep rise in demand, particularly in posh areas like Worli, Peddar Road, Napeansea Road, Malabar Hill, and Bandra. At the same time, there was equally strong demand for affordable 1 & 2 BHK homes under ₹2 crore, in suburban locations like Andheri, Kandivali, Chandivali, Mulund, Bhandup, Thane, Goregaon, and Dahisar.

One of the defining trends of 2024 has been the growing emphasis on green living and smart infrastructure. The residential segment saw a marked rise in demand for homes located within integrated townships that prioritize open green spaces, reflecting the luxury lifestyle quotient for the year.

On the commercial front, India’s office market exceeded expectations, with record-high leasing activity in 2024. About 58-60 million sq. ft. of new office developments were completed by the end of the year, highlighting strong demand in this sector.

In addition, the Maharashtra state government recognized the critical role infrastructure plays in economic growth, increasing its capital outlay to ₹8.7 lakh crore in 2024. This investment is being used to complete several ambitious infrastructure projects that are rapidly transforming Mumbai’s landscape. Key projects, including the Coastal Road, Navi Mumbai International Airport, Mumbai Metro Line 3, and the Versova-Bandra Sea Link, are improving connectivity, fuelling expansion in the real estate market, and elevating the city’s quality of life.

The increased infrastructure and connectivity in these cities have also contributed to rising property rates, with peripheral micro-markets benefiting from the overall development. Urbanization continues to accelerate as more people move to metropolises for better employment opportunities and enhanced living standards. Demographic shifts, including the rise of nuclear families and the affluence of young professionals, have led to greater demand for urban housing, a trend set to continue in the coming years.

India’s housing market remains on strong footing, and 2024 is expected to close as the best year ever in terms of sector performance. The continued buoyancy of India’s residential market, supported by strong fundamentals, is a testament to the country’s growing real estate potential.

Also Read: Ajay Devgn real estate

The post Key Real Estate Trends in 2024: Rapid Urbanization, Demographic Shifts, and Rising Foreign Investment appeared first on Square Feat India.

According to the Knight Frank analysis, between 2022 and 2027, the Indian real estate industry will expand at a CAGR of 8%. The research further notes that due to factors including the expansion of the Indian middle class and increased interest in Indian real estate as a refuge investment, the demand for real estate from NRIs is predicted to stay robust.

According to the survey, the top cities in India for NRI investment are Mumbai, Delhi, Bengaluru, Chennai and Hyderabad. Non-resident Indians (NRIs) are heavily involved in the investment activity that is booming in the Indian real estate industry. According to information from the Ministry of External Affairs, NRI real estate investments in India reached a record $8 billion in 2022.

NRIs should be aware of various legal issues before investing in Indian real estate, though. These consist of:

The FEMA – Foreign Exchange Management Act – controls the movement of money into and out of India. NRIs are permitted to invest in Indian real estate but must be aware of certain restrictions. For instance, NRIs are prohibited from investing in plantation or agricultural real estate.

Income Tax Act – NRI real estate investors in India are subject to several requirements of the Income Tax Act. For instance, NRIs must pay Indian taxes on the rental income they receive from their houses in India.

Property law – State-by-state differences exist in India’s property laws. The real estate regulations in the state where NRIs invest must be understood.

Stamp duty and registration fees – When buying real estate in India, NRIs must also pay stamp duty and registration fees. State-to-state variations exist in stamp duty and registration fees.

When it comes to investing in Indian real estate, there are a few practical considerations that non-resident Indians (NRIs) should be aware of:

Currency Amendments:

1. The Indian rupee’s (INR) value can be erratic and varies frequently against other major currencies like the US dollar (USD). If you are an NRI investing in Indian real estate, these currency swings may impact your results.

2. The prevalent currency rate can considerably impact the amount you receive when you repatriate your money or income from the rental or sale of property back to your place of origin.

3. To reduce this risk, Some NRIs think about hedging against unfavourable currency swings using financial products like forward contracts or options.

Political Factors:

1. Political stability in India can be erratic sometimes and this volatility may affect the real estate market, among other elements of the economy.

2. Changes in governmental real estate-related policies, rules and taxation can impact property values and investment returns.

3. NRIs should keep up-to-date on Indian politics and be ready for any changes that might influence their real estate assets. Investment diversification across various asset classes and nations can also aid in reducing this risk.

Not Enough Liquidity:

1. Compared to several other international real estate markets, the Indian real estate market is less liquid. This means that buying or selling real estate rapidly could be difficult, in some cities.

2. Due to several factors, including bureaucratic procedures, complex legal requirements, and market conditions, selling real estate in India can be time-consuming, depending upon the geography in which the unit is.

3. NRIs must be ready for the likelihood that they would have to hold onto their real estate investments for longer before finding qualified buyers, which can tie up their wealth.

To successfully handle these practical challenges, NRIs thinking about investing in Indian real estate should:

Carry out extensive research. Recognise your area’s political climate, economic climate, and real estate market. Real estate agents or regional experts might offer insightful advice. Spreading their investments across several asset classes and geographical areas can help NRIs to minimise risk rather than investing all of their money in a single real estate project.

Also Read: The top 3 Real Estate Agents to Pass MahaRERA exam are Women

Consider the long term: NRIs should have a long-term investment horizon and be ready to hold their properties for a considerable amount of time, given the potential lack of liquidity and currency changes. Keep up with any modifications to Indian legislation governing real estate ownership, taxation and money repatriation.

Despite these obstacles, NRIs can make money investing in the Indian real estate market. Before investing, it’s crucial to analyse all the ethical and legal issues carefully. It’s crucial to conduct research. Ensure you do your homework and comprehend the local market circumstances before investing.

Use a trustworthy agent: A competent agent can guide you through the legal and regulatory maze and help you locate the ideal property for your investment requirements. In addition, the Indian real estate market might be unstable in the short term, so it’s necessary to have patience and not aim for immediate financial success.

For a successful and secure investment journey in India, it is essential to grasp property legislation and the legal issues for NRI real estate investors. This guide has clarified important issues that NRIs must address, such as property eligibility, repatriation of funds, taxation and compliance requirements.

While there are plenty of chances in the Indian real estate market, according to the law, it is the key to a safe and successful investment plan for NRIs. NRIs can take full advantage of the Indian real estate market while protecting their future investments by being watchful, aware and complying with the law.

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Property registration has always been a lengthy and time-consuming process in all states. Over the last few years, more than one lakh property documents have been registered in Maharashtra each month on average. Massive crowding at sub-registrar headquarters causes long lines that tax everyone’s nerves and patience. In the end, the traditional method of registering property sales deeds is extremely inconvenient, with people sometimes having to wait an entire day to have their property documents registered. Adding to that, visiting the department of a sub-registrar of real estate isn’t always pleasant. There are frequently long lines, forcing the buyer to wait a long time for his turn. These offices are frequently housed in run-down buildings plagued with brokers out to defraud homebuyers.

With the Maharashtra government launching online registration of property sale agreements, buyers can expect a more holistic experience in the future. This digital registration has simplified and facilitated the complex task of property registration, while also increasing transparency. This digital initiative was launched during the Covid-19 pandemic and has since then proved to be a boon for homebuyers and developers alike. More than 400 real estate developers in Maharashtra have chosen the e-registration system so far as it enables a swift registration process that enables them to save precious time and resources. E-registration for all first sales Property registration under MahaRERA will improve overall transparency. It is a significant step towards future-proofing the real estate sector in periods of current and future uncertainty, and it will assist developers in becoming even more customer-focused.

Online property registration is already available in a number of states, including Kerala, West Bengal, Karnataka, Tamil Nadu, Rajasthan, Jharkhand, Sikkim, New Delhi, Maharashtra, Madhya Pradesh, Uttar Pradesh, Uttarakhand, Telangana, Andhra Pradesh, Punjab, and Chhattisgarh. All of these states have created the Common Services Centre (CSC) Scheme, which verifies registrations.

Homebuyers may upload their necessary documentation in advance on the designated website’s Public Data Entry (PDE) section. They then select a day and time to come to the registration office. This step was intended to save time for both buyers and officials by requiring buyers to only come to the registration office for fingerprint recognition and signatures.

Benefits of e-registration

Here are some benefits of the use of technology for property registration:

1. Ease of use

The Internet makes it extremely simple to register a property because the registration form can be downloaded online. Alternatively, the form can be obtained from the state’s concerned authority’s office. The property is registered in about two weeks after the details on the form and documents relating are verified.

• Increased transparency

The recorded history of ownership, number of rooms, gross carpet area, and foundation details are all available online. The goal is to keep nothing about the property hidden from a potential buyer. This creates transparency and reduces the possibility of fraud cases in real estate transactions.

• Litigation is avoided.

Because e-registration records all property transactions, it can be used as evidence in the event of a dispute.

• Safety

Property e-registration is secure on two fronts. To begin with, a hacker does not have access to an owner’s property papers, including the transfer of Power of Attorney. Secondly, there are numerous layers of protection in government servers, which have been SSL encrypted. Furthermore, they also have a personalized login system.

Way Forward

The Maharashtra government is taking steps to protect the data associated with such transactions in order to promote e-registration of newly purchased property and establish confidence among home buyers. The use of blockchain technology will prevent the redundancy of original agreement documents.

The Indian Bankers Association has already begun a blockchain pilot with banks and other mortgage companies. They are being made aware of e-registration documents after concerns were raised that because online documents lack stamps and signatures, they cannot be identified as original documents. In the second stage, we will have a unique number on these registered estate documents, which bankers will be able to enter into the system and match. If it does not match, it indicates that the document has been meddled with.

E-registration is a critical step toward facilitating the digitization of the real estate sector. This will significantly reduce overcrowding at registrars and eventually will allow developers to serve home buyers. The entire e-registration system will make the process easier and the data will be entirely safe and secure.

Also Read: Here’s what Real Estate Industry Thinks reduced home sales in Oct

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The growth juggernaut will continue in FY 23. Over the last 3-4 years, real estate has largely been driven by end-users. However, the tide is turning and it is once again on the radar of investors. If one has a mid-to-long-term investing perspective, real estate is a good choice. It also has a high aspirational value. In the form of monthly rentals, real estate can also provide a steady stream of revenue. In India, both major and small investors are rediscovering the benefits of real estate investing, especially at a time when cautious investment is still a part of the language.

The real estate sector has proven to be an appealing asset class with higher relative returns, attracting both locals and NRIs equally. Today’s NRI buyers seek a well-connected living ecosystem with a diverse range of options for living, working and playing in style. Residential real estate has always been the preferred asset category for non-resident Indians. NRIs have gradually returned to the real estate market in recent months, boosting sales of luxury homes and other segments. The desire is now mostly for personal usage. Global Indians contribute significantly to India’s foreign reserves through remittances and investments in various Indian asset classes, notably real estate.

Positive impact on the Economy

The depreciating rupee is an opportunity for NRIs to invest in residential real estate in India.This is also helping our country economically. Mumbai is India’s greatest city for commercial real estate investment, with returns of 12-19 percent expected over the next five years. Bengaluru and Delhi-National Capital Region (NCR) are the next top cities. After agriculture, real estate is India’s second major source of employment. It contributes to roughly 10% of the country’s GDP and is expected to increase at a rate of 30% over the next decade. In India, the demand for urban housing is expected to be 4.2 million units in the top eight cities. The National Capital Region will have the largest demand, accounting for roughly 24-26 percent of overall demand.

Influencing the rise of luxury homes

Global buyers are influencing the rise of luxury homes in various cities in India. The growing popularity of working from home has increased the desire for larger homes. NRIs appreciate open, green places with modern amenities including temperature-controlled pools and electric vehicle chargers, contactless entry, electrical equipment connected to a mobile phone, closeness to health and wellness centers, malls/supermarkets, connectivity to airports and safety. Furthermore, ready-to-move-in residences with opulent designer interiors and projects nearing completion are available. According to the latest CII-ANAROCK Consumer Sentiment Survey, “Cheap housing is the lowest priority for the first time, with more than 34% of respondent home seekers focusing on properties valued between INR 90 lakh and INR 2.5 cr.” The majority of NRI respondents preferred luxury properties with a price range of INR 1.5-2.5 crore. Location, social infrastructure, in-development amenities, and the size of one’s home were significant contributors towards the price brackets that we see gaining traction.

The Indian real estate sector bore the weight of the COVID-19 pandemic, and many projected a long period of hardship, particularly for the luxury segment. However, when customers began to gravitate towards luxury homes due to the healthy lifestyle they offer, things began to change, and luxury has now been redefined as a way of living.

Several state governments reduced stamp duty and the interest rate on home loans to nearly low as well as simplified investment regulations and the rupee’s devaluation, all of which encouraged people to invest in real estate, resulting in increasing demand.

Manju Yagnik, is Vice-Chairperson, Nahar Group, and Sr. VP NAREDCO (Maharashtra). Views expressed in the article belong to the author and do not represent that of SquareFeatIndia.

Also Read: RBI’s Repo Rate Hike may impact real estate demand: Realtors

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The year 2021 has been a year of optimism, recovery and confidence for the Indian Real Estate. It has been a year of hope for residential realty from the lows of 2020 due to onset of pandemic to highs of comeback with the support from government, regulator, RBI, banks attracting property investors and buyers to take a plunge in the realty sectorrecording new highs in sales. To be very specific, it has builtthe needed base for complete turnaround in the year 2022 awaited by all stakeholders be it government, developers, buyers, investors along with India’s economic trajectory. 

The year 2022 for the Indian real estate sector, is predicted to be, by and large the year of recovery from the Covid crisis. Reason being increased affordability due to ongoing favourable government impetus, accommodative stand by RBI with unchanged Repo Rate resulting in decade low bank interest rates for homes loans, policies supporting developers, stabilised property rates all aimed at complete recovery. 

We know that the onset of the pandemic in 2020 led to existing inventory having almost dried out with end-users investing in homes for the safety and security of their families. In addition, there has been a continuous decline in the overall unsold and ready-to-move-in inventory, primarily because of the increased absorption of the existing inventory. Many in the rental market, including fence-sitters, took a plunge into the real estate market for property purchases during this period. Consequently, the sales volume increased quarter on quarter in 2021.

While, market analysts and experts are of the opinion that the Indian real estate sector’s incredible V-shaped comeback after the second wave in Q2 2021 was astounding. The year 2022 will be riding high on additional inventory with increased new project launches to bridge the demand and supply gap to meet the demand for homes across all segments: From budget to luxury homes. The sector along with NAREDCO successfully handled the Covid-19 outbreak and with government support ensured that the sales momentum continued even after the phase-wise unlocking in 2020 continued till December 21.

The year 2022 is expected to continue the growth momentum in the real estate sector, despite the threat of the new Omicronvariant looming large. 2022 is expected to ride high on some important trends that will get the entire real estate ecosystem back on track to support 250 plus ancillary industries.

So, let’s take a look at the key trends for real estate in 2022 that will further its growth momentum.

Return of Inventory

With the Real estate sector inventory having hit new lows and supply almost drying up in 2020, the year 2022 will be a huge turnaround on the inventory front. With newer launches lined up by almost all developers, buyers can have a collective sigh of relief as the added inventory will bring down the demand to supply gap further. So, the year 2022 will see buyers spoilt for choice.

Demand for Safe Haven

With the pandemic still around and the threat of new variants such as Omicron looming large, homes away from neighborhoods and localities will witness tremendous demand. The likes of villas, plots, and independent homes away from the cities that offer some semblance of solitude will continue to be a hot proposition for investment with the work-from-home scenario expected to continue for another 2-3 years.

Commercial Real Estate

The Indian Economy has seemingly crawled out of the COVID pit and is witnessing a K- shaped recovery, the resurgence has reopened commercial real estate prospects. With companies, offices, corporates going back to pre-pandemic work mode, the demand for office spaces, data centers, IT/ITes, Co-working spaces, Business Center & Parks, Commercial, industrial properties, warehouses, etc., are expected to see robust demand.

Smart Homes Smart Living

The arrival of COVID-19 having impacted normal walks of life shall prove to be a catalyst for digital transformation with life moving indoors. With everyone being pushed to adapt themselves to the pandemic lifestyle overnight,  digital technologies such as The Internet of Things (IoT) are becoming the new normal. The work and study from home adoption has been overcome by embracing technology in an optimal fashion. Developers are providing smart and automated homes to create a more comfortable work/study environment, better security, and an upgraded standard of living.

Connectivity and Micro markets

Infrastructure and connectivity will be key when it comes to purchasing real estate in 2022. Any location with ready infrastructure and good connectivity will score over other parameters when it comes to home purchases. So, projects which are strategically located and connect all the important dots for convenient living will drive sales in 2022.

Micro-markets like Vikhroli, Chandivali, Mulund, Bhandup, and Goregaon in Mumbai, which are also considered small business districts and offer a good work-life balance, are more sought-after areas for investment in homes. These areas also offer impeccable proximity to all the essentials in life

Township & Sustainable Living Spaces

Townships that address the challenges of rapid urbanization while offering the solace of being disconnected from the hustle and bustle of the city, with promixity to nature, will be in focus for 2022. A development with an optimum mix of external, internal, open green spaces, and self-sufficient spaces are pivotal for building well-designed residential, commercial, retail, amenities, and recreational areas.  Other factors for development include quality health, education, and other community facilities. With future buyers eyeing developments that offer a balance between work-live-play in a controlled environment coupled with friendly neighborhoods.

Co-working Spaces

The real estate sector is making a strong comeback in FY 22 as the hybrid work model is here to stay for a while; hence, flexible and coworking office spaces will be an attractive proposition for the year 2022. This is one such segment with ample benefits for companies, these being smaller lease terms, tailored operational costs along with safety and wellness amenities.  As the workforce evolves, the market shall see an increased demand for coworking spaces.

The year 2022 will see major trends in the real estate sector towards affordable housing, safe living options, increased convenient living spaces, townships or community living options, good connectivity, robust infrastructure, budget homes, real estate investments, co-working spaces, and sustainable living. As the Indian economy is expected to recover quickly, the demand for real estate will see a strong uptake in 2022.

Manju Yagnik, Vice Chairperson, Nahar Group & Senior Vice President, NAREDCO Maharashtra. Views expressed in this article solely belongs to the author.

The post Year 2022- Return of Realty Recovery appeared first on Square Feat India.

What does a homebuyer seek today when it comes to home preference is it investment, luxury living, hospitality services, amenities and facilities, good developer, comfortable budget, sustainable location, or a good neighbourhood and community? If you go by the present scenario, one will tick all boxes to own a place called Home. Today, homeownership is driving the market resulting in increased demand for developments that provide amenities for holistic and sustainable living, accessibility, with more open and green areas being the need of the hour. Buyers are eyeing projects that too by reputed developers that offer multiple features catering to consumer preferences across age groups and interests. On the other hand, the Covid-19 pandemic has also compelled developers to re-evaluate how they use their space not only within the home but also outside the home.

Residential projects at a strategic location that offer all the necessary amenities have become a basic need of everyone living in the metropolises. On the other hand, buyers are choosing projects which offer expansive living areas, strategically located and which offers ready social infrastructure be it shopping, entertainment hubs, educational institutions, medical and healthcare facilities, and improved connectivity to internal roads, highways, upcoming metronetwork, and freeways for a quick getaway. Such living paradise, with innumerable benefits, are offered by only integrated townships and that too in newer micro-markets in central Mumbai and has an abundance of open and green space with water bodies around. 

However, the one trend that has emerged during ongoing lockdowns is the growing demand for customers to have amenities in their projects. Lockdowns have constantly restricted the movement of people outside their homes and hence having basic amenities in their vicinity is something that they look forward to when buying a home. This shift of necessity has given rise to growing residential real estate demand driven by amenities. 

Townships provide an abundance of recreational infrastructures like kids’ parks, jogging trails, gardens, and podiums. These new-age projects are equipped with every kind of facility; residents can find shops, temples, schools, medical centers, etc. Today, developers are offering township developments which offer a good mix of recreational and commercial, from residential to retail outlets targeting the needs of the home seekers. Secondly, what attracts the millennials, first time home buyers, nuclear families to own a home in integrated townships is the focus on infrastructure at large. So, it is more that you are living close to your child’s school, community centre, shops and more and avoid car trips, so this means sustainable living and more time to be spent with the ones you love. Also, improved living lifestyle for family in a sustainable development away from hustle bustle of the city life, away from air and noise pollution.

The lush and plush design of the townships is a combination of commercial complexes, green areas, and luxurious residential property are basic ticks of an integrated township. Along with these features, there are many other benefits of living in these projects. These being  • Advanced social and civic infrastructure for better-quality living• Work-life balance with walk to work set-ups offering proximity to offices hubs surrounding the townships at important micro-markets especially central Mumbai• Townships provide a better scope when it comes to return-on-investments• Townships offer improved security and safety due to 24×7 surveillance systems like cameras installed at all the junctions along with security guards for maximum safety.• Townships are self-sustained that enhances the community spirit by way of living together

These integrated townships, located in newer and upcoming micro-markets like Andheri East, Chembur, Chandivali, Bhandup, Goregaon, Malad, Dahisar, Mulund are gaining more popularity since these locations have an expanse of open and green spaces. Also, developments on offer here are at affordable price points with higher appreciation potential with added infrastructure and improving connectivity around the townships. An improved lifestyle, better connectivity, and proximity to all prime locations make these micro-markets the most sought-after living destinations of Mumbai.  

The emergence of affordable and convenient housing is another positive trend that is very much prevalent in the industry today. The apartments priced comfortably offer buyers a decent living area ranging from 350 – 400 sq ft for 1 BHK to 525 -600 sq ft for a 2 BHK priced between approx. Rs 1.25 crore to 1.65 crores respectively. All the new launches in 2021 have given impetus to budget housing with an increased inventory of smaller 1, 2 BHK in these upcoming micro-markets and attracting the working class. So, what makes these homes available in upcoming micro-markets? It’s the increased affordability for a decent space for a family, a prime locale, and packed with multiple amenities and facilities. 

Today, more and more amenities-driven projects at comfortable price points are mushrooming in these upcoming micro-markets that provide them a lifetime opportunity to live a lifestyle, that too in a buzzing micro-market within their price bracket.     

With precisely spacious homes, high-grade infrastructure, and shared facilities make the investment cost-effective. All these features of amenities-driven projects have raised the housing demand in Mumbai and, budget homes have proved to be a successful chapter of the real estate story in the pandemic era.

Manju Yagnik, is Vice Chairperson, Nahar Group and Senior Vice President, NAREDCO, Maharashtra.

Note: the views and opinion expressed in this article solely belongs to the author.

Also Read: Model Tenancy Act The RERA Of Rental Market

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By Manju Yagnik,

Women today are making their mark in different industries, so also in the world of real estate. Women have the innate qualities of managing any profession.

I believe that women carve a niche for themselves with their talent in whichever profession they choose to be in. If there is zest and commitment to do something, then no one can stop you. Indian real estate industry has grown by leaps and bounds since I entered the industry over three decades back.

Today, if I look at the industry and corporates, I see that women of today are breaking all the stereotypes and excelling across sectors and real estate is no different.

Indian real estate industry having seen only a few women in leadership positions primarily, is today seeing more participation of women.

The real estate industry has been pretty archaic for a long time and with the increasing participation of Women in Indian real estate as channel partners, sales heads, developers, architects, and marketing heads it’s getting easier.

We are all aware that Women, due to their multitasking ability to balance work and family, is the right choice for any industry along with real estate, owing to the nature of the business.

Women have become part of the mainstream when it comes to contributing to the economy be it at work or as a consumer. I believe that women play an important role in the home buying process as they can envisage the lifestyle and future they would be able to create at home with their children and hence, underestimating the role of a woman in the home buying decision is unwise.

This has played a catalyst’s role for the Indian real estate sector that is witnessing increased traction from women home buyers along with being part of the industry as well.  

For me, women engaged in the real estate industry is always an advantage since women have the qualities of empathy and persistence and help in building relationships needed for the business. Women’s more nurturing, more sensitive and patient approach towards client’s needs benefits organizations in many ways.

We have seen that the change in the socio-economic environment of the country has led to increased participation of women in areas be it education, employment, entrepreneurship, Defence, Medical, and business.

Manju Yagnik, Vice Chairperson, Nahar Group & Sr. Vice President, NAREDCO West

India of today is seeing an increasing number of women having established a path of their own to gain financial independence. With financial independence comes ownership of various asset classes and have started investing in real estate to own a home of their own.

With the sector moving towards maturity, we need to see more women taking on leadership roles in all segments of real estate development, along with increased participation in home buying. On this International Women’s Day, let’s celebrate the spirit of womanhood.

Also Read: What Does A Woman Homebuyer Want?

Note: Manju Yagnik is the Vice Chairperson, Nahar Group & Sr. Vice President, NAREDCO West. Views expressed in this piece solely belongs to the author.

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By Varun Singh

The housing industry has many demands from the government. But one of the most to point out is to reduce ready reckoner rates (RR rates).

Why is it important, in Ram Raheja, Director, S Raheja Realty’s own words 40 per cent of the project cost is reliant on ready reckoner rates.

“The costs for every project depends on the ready reckoner rates. All our premiums, deficiency, FSI etc. are calculated based on RR rates; approximately 40 per cent of the project cost is reliant on this,” he said.

Of late many industrials and ministers have asked developers to reduce the prices if they want to survive the downturn.

Also Read: Reduce prices to survive or suffer: Goyal to builders

On this, Anuj Puri of Anarock Property Consultants says, “It’s all very well to exhort developers to cut their prices to push sales, but this is still a very incomplete narrative presenting only half of the story.”

Puri further adds, “To overcome issues like inventory pile-up and cost overruns, many players have already topped off major discounts with additional offers like refundable booking amounts, waived statutory fees, cashback schemes, easy payment structuring and assorted freebies.”

Raheja presenting the builders side adds, “People keep asking developers to reduce prices and sell. But the only way that is possible is if the government does the same. This in turn will allow the cost for our projects to reduce. A reduction in the ready reckoner rates is a much awaited step.”

The unchanged ready reckoner rates had upset the housing industry earlier. Developers from the housing industry were expecting a reduction in the rates, though that didn’t happen.

Manju Yagnik, Vice Chairperson, Nahar Group and Vice President NAREDCO (Maharashtra) had then said, “The industry is reeling under slowdown followed by lockdown due to Covid19 expected reduction in RR rates which are already higher. The reduction in RR rates would have provided some respite to home buyers and developers both.”

Adv Vinod Sampat, says that RR rates should be reduced by minimum 20 per cent, but our bureaucrats are more bothered for their targets.

Sampat says, “If government feels RR rates are realistic they should be willing to acquire the property at the same price as mentioned in agreement. All over the world recession has set due to COVID but our stamp duty authorities have not reduced the ready reckoner rates. One quarter is about to get over.”

Anarock suggests that government should reduce ready reckoner and stamp duty rates as this would give immediate and significant monetary relief to homebuyers, particularly those seeking affordable properties.

A reduction in RR rates combined with other incentives, can help convert fence-sitters in both affordable and mid segments to take the plunge.

According to Sampat, this (no reduction) has severely affected the real estate industry. The approach of government authorities of not giving timely financial support to real estate sector in all probabilities can result in depression amongst some realtors specifically those who have huge liabilities.

Sampat also says that all calculations of realtors have gone for a toss due to COVID scenario with literally no help from government.

Developers from the housing industry also say that at many places the RR rates have surpassed the actual market rates and hence do need to be reduced.

Rajesh Prajapati of Prajapati Group says, “At many places across Mumbai as well as other locations in Maharashtra, The RR rates have surpassed the actual market rates of land as well as flats / shops / offices. This causes great hardship for both buyers and sellers as both are taxed under IT Act sec43CA if the transaction value of lower than 10% of RR Value.”

Even Prajapati points out that, most premiums in mumbai and other ULBs are based on RR values which become unrealistically high.

“Also due to low demand in this pandemic situation, developers may be forced to transact a few deals at less than market values. Hence there is a strong case for RR value to be brought down by the government of Maharashtra,” opined Prajapati.

Rohit Poddar, MD, Poddar Housing and Development Ltd. says, that the answer (reduction of RR Rates) is that it depends on the asset class of real estate. For the luxury residential and commercial sector in the Top 10 Metros of India, the answer is absolutely yes. For the low cost and affordable housing sector, the answer is no because prices are not going to reduce any further.

Poddar’s reason for sectoral wise reduction in RR rates is that there has been a tendency for the state government to increase RR rates on an annual basis as a matter of practise

He finally says, “However prices for the end project have not risen in proportion so in many instances the RR rates is higher than the actual market price of the product and registering substantially below RR rates is a compliance issue with Income tax and the developer / seller would have to get the documents adjudicated every time. Instead of this which is contrary to Ease of Doing Business, RR rates has to be reduced based on prevalent market conditions and rates”

Also Read: COVID discount, distress sale new trend in real estate

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