What Has Changed?

Previously, under the Income Tax Act, if an individual owned more than one property but did not rent it out, they were still required to pay tax on notional rental income—essentially, a tax on the assumed rent they could have earned. The new policy eliminates this tax on a second self-occupied home, providing significant relief to homeowners and investors.

Industry Reactions

Experts from the real estate industry have welcomed this move, highlighting its potential impact on homebuyers and the housing market.

Domnic Romell, President, CREDAI-MCHI

“The move to allow taxpayers to claim the annual value of two self-occupied properties as nil is a significant step. Previously, homeowners could claim tax exemption on only one self-occupied property, while additional properties were subject to tax—even if they were not rented out. This progressive reform provides substantial tax relief, encourages homeownership, and acknowledges the evolving housing needs of Indian families.”

Anuj Puri, Chairman – ANAROCK Group

“This change is a positive move for residential real estate investment. By allowing homeowners to claim Nil valuation for two self-occupied properties, the government has removed the burden of taxation on notional rental income from a second home. This step minimizes tax pressures, promotes homeownership, and facilitates real estate investment, particularly in second homes and Tier 2 and 3 cities.”

What This Means for Homebuyers and Investors

1. Encourages Real Estate Investment – With the removal of tax on the second self-occupied property, more individuals will be inclined to buy a second home—whether as an investment or a weekend retreat.
2. Boosts Housing Demand – The reform is expected to increase demand for housing, particularly in Tier 2 and Tier 3 cities, where second-home purchases are on the rise.
3. Supports Long-Term Financial Planning – Buyers can now own multiple properties for personal use without worrying about additional tax burdens, making real estate a more attractive long-term asset.
4. Strengthens Rental Markets – Although the exemption applies to self-occupied properties, it reduces financial constraints on property owners, which could lead to a more flexible and dynamic rental market.

Final Thoughts

The exemption on notional rental income for two self-occupied properties is a pro-consumer, pro-real estate move that will benefit middle-class homebuyers, investors, and the housing sector as a whole. With growing urbanization and increasing aspirations for homeownership, this policy change is expected to have a lasting impact on India’s real estate landscape.

For those looking to purchase a second home, now might be the best time to invest.

Also Read: Affordable Housing Crisis: Will Budget 2025-26 Turn the Tide?

The post New Tax Exemption on Two Self-Occupied Properties: A Game-Changer for Homebuyers and Investors appeared first on Square Feat India.

Wealth Growth and Global Standing

India is not only seeing a rise in the number of wealthy individuals, but its global influence is also expanding. As of 2024, India ranks 6th globally in terms of UHNI population and 3rd in Asia, trailing only China and Japan. The number of UHNIs in the country has reached 13,600, marking a 6% growth from the previous year, with expectations that the population will increase by 50% by 2028, significantly outpacing the global growth average of 30%. Meanwhile, India is home to over 850,000 HNIs, and this figure is expected to double to 1.65 million by 2027. Notably, 20% of India’s millionaires are under 40, signaling the growing influence of younger wealth creators.

Drivers of Wealth Creation

The sources of wealth in India are diverse, with several key sectors contributing to the rise of the country’s affluent population:

• Tech and Start-ups: Nearly 30% of new HNIs have amassed their fortunes through technology, fintech, and start-ups.
• Manufacturing: The “Make-in-India” initiative has fueled industrial wealth, accounting for 21% of the UHNI economy.
• Real Estate: Luxury and commercial real estate, particularly in urban areas, contribute 15% to the UHNI wealth pool.
• Equities: The Indian stock market has been a major driver of wealth, with equity-based wealth growing by 18% year-on-year.

Real Estate and Second Homes

Real estate remains a cornerstone of wealth allocation for HNIs and UHNIs in India:

• Luxury Homes: The share of luxury homes in total sales has surged to 28% in 2024, up from 16% pre-pandemic. High-end properties in cities like Mumbai, Delhi, and Bengaluru are highly sought after, with emerging second-home destinations such as Goa, Alibaug, and Jaipur gaining popularity.
• International Investments: Around 14% of UHNIs own properties abroad, particularly in cities like Dubai, London, and Singapore. The average international property investment surpassed INR 12 crore ($1.44 million) in 2024.
• Sustainability Focus: Green buildings and ESG-compliant real estate are attracting growing interest among affluent buyers who prioritize sustainability.

Changing Spending Patterns

The affluent in India are shaping global luxury consumption trends:

• Luxury Cars: Over 37% of Indian HNIs purchased high-end vehicles in 2024, contributing to record sales for brands like Lamborghini, Porsche, and Rolls Royce.
• Travel and Experiences: UHNIs are spending an average of INR 6 crore ($720,000) annually on bespoke vacations, luxury cruises, and exclusive experiences.
• Jewelry and Art: India is the 5th largest market for luxury watches and bespoke jewelry, with increasing demand for prestigious brands like Cartier and Patek Philippe.

Investment Preferences and Future Outlook

The investment landscape of India’s wealthy is shifting towards diversification:

• Portfolio Composition: 32% of wealth is allocated to real estate, 20% to private equity and start-ups, particularly in AI, blockchain, and cleantech, and 8% of UHNIs are investing in cryptocurrencies, despite regulatory uncertainty.
• Global Diversification: Nearly 25% of Indian UHNIs are expanding their investments abroad, with a focus on North America and Europe. Additionally, over 40% have established family offices to manage wealth, succession planning, and philanthropy.

Emerging Trends

Several emerging trends are shaping the future of India’s wealthy:

• Millennial Wealth Creators: Over 15% of HNIs are under 30, driven by the tech sector, start-up unicorns, and IPOs. This number is expected to rise to 25% by 2030 as younger entrepreneurs increasingly drive wealth creation.
• Alternate Citizenship and Global Mobility: Approximately 10% of UHNIs acquired alternate citizenships in 2024, with destinations like Portugal, Malta, and the UAE offering global mobility and tax benefits.
• Health and Wellness: High-net-worth families are investing heavily in wellness-focused real estate, customized healthcare, and anti-aging solutions, alongside increasing investments in preventive healthcare and luxury wellness retreats.

India’s Growing Global Influence

India’s wealthy are now prominent players on the global stage:

• Rising Economic Prominence: India’s UHNI population grew by 6% in 2024, while China’s growth slowed to just 2%, signaling India’s rising economic prominence.
• Philanthropy: Indian UHNIs donated over INR 60,000 crore ($7.2 billion) in 2024, focusing on education, healthcare, and sustainability.
• Luxury Market Growth: As India’s luxury goods market grew by 12% in 2024, global brands are increasingly tailoring their offerings to Indian tastes, including bespoke couture and experiential services.

Conclusion

The rise of HNIs and UHNIs in India is not just a sign of growing wealth but also a reflection of the country’s economic transformation. From reshaping the luxury market to driving philanthropic initiatives and embracing new investment opportunities, India’s affluent are playing an integral role in shaping the global economy. With a rising cohort of young wealth creators, a booming tech sector, and increasing global influence, India’s journey toward wealth dominance is just beginning.

Also Read: MahaRERA Dismisses Broker’s Complaint for Brokerage Payment, Cites Lack of Legal Provision

The post The Rise of Indian HNIs and UHNIs in 2024: A New Era of Wealth and Influence appeared first on Square Feat India.

In the vast expanse of Mumbai’s real estate market, Boisar is emerging as a beacon of potential destination, ready for significant expansion and transformation. This vital location between Mumbai and Gujarat is undergoing a spectacular transformation, powered by massive infrastructure upgrades. These improvements are not only improving connectivity but also altering the area’s economic landscape, making Boisar an appealing possibility for both investors and homebuyers.

“The infrastructure upgrades in Boisar represent more than just improved connectivity; they represent a significant shift in the region’s economic landscape,” Prashant Khandelwal – CEO, Agami remarked of the development. “Boisar is on the verge of undergoing a transformation, making it an excellent choice for real estate investments. These projects will open up hitherto unseen possibilities, resulting in a thriving and sustainable community,” adds Khandelwal.

Boisar and the Bullet Train Revolution

One of the most significant factors changing Boisar’s future is its inclusion in the Mumbai-Ahmedabad bullet train project. The introduction of this high-speed rail line promises to revolutionise connectivity, crossing the gap between Boisar and key centres like BKC, Thane, and Virar in under 35 minutes. This quantum increase in transit infrastructure is projected to spark a real estate boom, making Boisar an alluring destination for property investors and enterprises searching for strategic positions.

The Mumbai-Delhi Expressway: A Lifeline for Boisar’s Growth

The Mumbai-Delhi Expressway.  is another critical project determining Boisar’s future. This broad roadway not only improves travel but also serves as a catalyst for economic growth along its path. Boisar, which is strategically located along this motorway, will gain greatly. Because of the enhanced road connection, businesses are flocking to the area, making it an excellent alternative for individuals looking for active investment prospects.

Enhanced Rail Connectivity: The Virar-Dahanu Section

The ongoing four-lining of the Virar-Dahanu railway stretch strengthens Boisar’s appeal. This project will improve rail connectivity, making Boisar more accessible to both commuters and companies. The free flow of people and commodities is projected to boost the region’s economic prospects, attracting new investments and contributing to its growth.

Vadhavan Port: Propelling Industrial Growth

The impending Vadhavan Port, which is set to become India’s third-largest port, is set to change Boisar’s economic landscape. This ambitious initiative is expected to boost industrial growth in Boisar by attracting significant investment and creating a plethora of job possibilities. As industrial activity increases, the need for housing and commercial space in Boisar is expected to rise, making it a prime location for real estate investments.

Coastal Road Extension: Linking Boisar to Progress

The extension of the Mumbai-Virar route to Palghar via the Coastal route is a key milestone for local connectivity. As a result of being a part of this development, Boisar now has better access to neighbouring areas. This improved connectivity not only benefits locals but also increases the region’s attractiveness to businesses and investors, boosting economic growth in Boisar even further.

Boisar’s Industrial Prowess: An Employment Magnet

Boisar’s reputation as a well-developed industrial centre precedes it. With over 1500 industrial units producing everything from steel to plastic, Boisar has become a magnet for job seekers. The presence of Maharashtra’s largest MIDC and the Tarapur Atomic Power Station highlights the area’s economic prowess, boosting demand for homes and business facilities.

Price Appreciation: Boisar’s Bright Future

Property values are set to rise significantly as Boisar’s infrastructure undergoes a dramatic change. The incorporation of Boisar into the bullet train network, as well as its strategic site along the Mumbai-Delhi Motorway and other significant initiatives, ensure a promising future for real estate investors. According to industry experts, these developments will catalyse economic growth, making Boisar a focal point of development in the Mumbai metropolitan region.

Finally, Boisar’s real estate market is seeing a revival, fueled by creative infrastructural initiatives that promise to change the city’s future.

The post Infrastructure advancement attracting real estate investments in Boisar appeared first on Square Feat India.

By Varun Singh

Kohinoor Group a real estate firm has bought a 32 acre land parcel in Pune.

The seller of the land is another developer Goel Ganga group.

According to a report the estimated price cost of the land parcel is between ₹180-195 crore.

Anarock Property Consultants carried out the deal.

The land parcel, sold by Goel Ganga Group to Kohinoor Group, has an overall development potential of approx. 4 million square feet.

On the residential front, the planned project will mainly cater to mid-segment home buyers, with units priced in the ‘sweet spot’ budget range of ₹55-80 lakh.

Shobhit Agarwal, MD & CEO – Capital Markets, ANAROCK Group, says, “We are happy to have enabled this timely land transaction between two of Pune’s most prominent real estate players. Real estate development in Pune is on a sustained upswing, driven by the city’s resilient IT sector and increased demand for homeownership amid the new pandemic realities.Wagholi is a hotbed of residential and commercial real estate activity.”

The land parcel is located in Wagholi. Wagholi, located along the Pune-Ahmednagar highway, benefits from multiple growth drivers. It draws direct spillover demand from other major residential and commercial hubs like Kharadi, Hadapsar, Magarpatta city, Koregaon Park, and the nearby industrial zones of Ranjangaon and Shikrapur. It has well-developed social infrastructure and is patronized by IT professionals and industrial employees. The highest demand in this area is for mid-range and premium housing options.

Vineet Goyal, Jt. MD – Kohinoor Group, says, “Kohinoor Group Pune confirms purchase of 32 acres in Pune’s upcoming IT hub of new Kharadi (Wagholi) to develop a premium residential and IT office project along with a reputed school and lifestyle amenities.Wagholi is the perfect location for the project we will develop there, since it has a IT-driven clientele looking for superior offerings with state-of-the-art facilities and amenities.”

Also Read: ARKADE Group acquires Mulund land for Rs 90 Cr

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