Residential Themed plot developments attract new buyers

Residential themed plots development are increasingly attracting young buyers in Ahmedabad. In recent years, the real estate investment in Ahmedabad has increased manifold. A number of projects have come up across the country, which offers themed plotted developments to the new buyers. Such projects are drawing buyers in large numbers in recent years, as they allow the homeowners to develop homes that cater to their hobbies and passions. For instance, themed plotted developments have got adequate infrastructure for nature, sports activities, organic farming and so on. These plots are being upgraded by the reputed real estate companies.

Homeowners, particularly the luxury property buyers are interested in buying these plots. These include the people belonging to the ultra-high-income group and IT professionals. Most of these people are interested in building their second homes, rather than purchasing template properties. The developers, too, are keen to enter the micro-markets, tapping the possibilities of selling these properties here. They integrate these homes with state-of-the-art amenities in order to lure the customers. Certain housing complexes have also been developed with artificial beaches, boats and sandboxes. These also contain many man-made designs, such as artificial forests.

The amenities in these themed plotted developments are included after considering specific situations. Therefore, these homes may come with turfs, lawns, basketball courts, clubhouse, stadium, facilities for indoor games and so on. Many complexes in recent years have come up with yoga and acupressure facilities. Besides, these homes come with dedicated play areas for children, swimming pool, gym and other amenities. Homeowners who buy these properties get an access to the amenities.

Investors, on the other hand, too, have been investing in themed plotted developments. They have realized that these projects attract high-income buyers and are lucrative deals in the long run. Most of the key cities of the country have witnessed the development of these resorts. An additional advantage for the homeowners in these cases is the proximity of the complexes to the key areas in the city. The residents can get an easy access to the important places, including the commercial and business zones in the city. Besides, the homeowners can get fast access to the places of recreation. These developments have taken place in areas close to reputed schools and hospitals. This enables the homeowners to get a fast access to these institutes. If you are willing to buy apartment in Ahmedabad, you can get them customized in the real estate portals. Luxurious homes have always been a fascination for homeowners. Moreover, these homes bring you an elegance you had always craved for. For property owners, this is the right time to make the investment.

8 Vastu Tips to Keep in Mind Before Buying A Home

Vastu Shastra, commonly known as Vastu, is a traditional Hindu system of architecture, the literal translation of which is “science of architecture”. These are based on Hindus as well as Buddhist beliefs and have been formulated with the aim of integrating architecture with nature, the relative functions of various parts of the structure, and ancient beliefs utilizing geometric patterns and symmetry. In order to ensure well-being, happiness and prosperity of all the residents, it is important for a house to be built as per guidelines laid down by the Vastu Shastra. Despite popular beliefs, Vastu Shastra is not fantastical or irrational but it’s based on sound scientific principles that aim at combining all five elements of nature to ensure utmost well-being of mankind. So, it is better not to ignore this aspect while buying a house, as you end up practically spending each and every penny you had saved till now on it, and you would want it to be just perfect. You don’t need to be a Vastu expert in order to know whether the basic structure of the house is as per Vastu guidelines or not. Just a quick look at the entrance and you will understand the Vastu of the house. How? Don’t worry; we will give you some Vastu tips to keep in mind before buying a house. Easy? Well here they are:

Entrance

If you are not buying a standalone property but an apartment, the entrance to the block will be considered as the entrance. Make sure that the entrance gate is located towards north or north east. South and west entrances are not recommended. The reason behind this is that sun’s rays entering from this direction during afternoon are harmful to your health. Proper ventilation with ample sunlight Vastu lays extreme importance on having proper ventilation in a house. The house should be open, airy and get ample of sunlight, as close claustrophobic places lead to breeding of germs and sunlight helps kill any unwanted germs and smells. A North or East-facing flat with windows and balconies in either of these two directions is ideal. According to Vastu, a house should not have a common wall with another house as it creates mixed energies; hence it is very important for open space to be left on all four corners of the place.

Kitchen

The kitchen should ideally be in the south-east corner of the flat. It is called Aagneya – apparently the direction governed by fire element.

Water storage tank

It should ideally be placed in the north-eastern corner of a building as this area gets the first ray in the morning, and early morning rays are very beneficial for the purity of water.

 

Toilets and bathrooms

They should ideally be on the south-west or the southern corner of the flat. It is because the wind blows from north-east to south-west and if toilets are placed in north-east, the wind will blow from toilet to the living room thereby contaminating the atmosphere.

 

Kid’s room

The most ideal place for a kid’s room is the north-east or north-west part of the house. Also the window should open to the North, because it would prevent direct harmful rays of the sun from entering his/her room, and giving him/her ample sunlight at the same time.

 

Center of the apartment

As per Vastu, there should be light in the center of the apartment, so closed spaces like kitchen and toilets should not be placed here. The center is an ideal place for a living room.

 

Staircase It is not advisable to build the staircase in the North-East, as this will block the morning rays of the sun. External staircase should ideally be placed in the South-west corner. Internal staircase should not be placed in the center because it would not only mar the beauty of the living room but also make it look congested.

Ahmedabad tops list of youngest realty buyers: Study

According to a joint survey of 10 cities in India by Indian Institute of Management, Bangalore (IIM-B) and Magicbricks (MB), Ahmedabad tops the list of youngest real estate buyers.

The survey titled Housing Sentiment Index (HSI) is jointly developed by IIM-Bangalore (IIMB) and Magicbricks (MB) and is based on an online survey of prospective home buyers after careful screening by MB and IIMB.

A total of approximately 3,000 buyers are surveyed every quarter in an online survey across 10 cities Mumbai, Delhi, Hyderabad, Pune, Noida, Gurgaon, Bangalore, Chennai, Ahmedabad and Kolkata.

The HSI index for youngest buyers in the 18-25 age group puts Ahmedabad at 131. On the other hand, Kolkata topped the list of oldest buyers in the 50 years and above age group at HSI of 131.

In terms of housing prices, the value of HSI can range from 0 to 200.

A score of 100 represents neutrality, meaning people do not expect house prices to either increase or decrease.

A score of 200 indicates that all respondents expect house prices to increase. A score of 0 indicates that all respondents expect house prices to decrease.

The index also highlighted price sensitivity among real estate buyers in Ahmedabad.

The city saw 62 per cent of those earning less than Rs 10 lakh per annum (HSI 84) look to buy in Ahmedabad while 30 per cent plan to buy in Gurgaon (HSI 144).

Moreover, over 51 per cent of those living in their own houses intend to buy property for residential purpose, implying a move to a bigger/better residence. In Ahmedabad such respondents are 60 per cent (HSI 83).

Among other factors, Bangalore has the maximum IT crowd (51 per cent, HSI 141) while Ahmedabad has maximum self-employed (25 per cent, HSI 92) and retirees (4 per cent). Noida which increased by 33 per cent in the previous quarter, fell by 4 per cent to 124 while Hyderabad fell by 4 per cent to end at 97.

Ahmedabad is the only other city with an HSI below 100.

In Ahmedabad, of the buyers 59 per cent want to purchase property within the next six months (HSI 102) while 22 per cent are ready to wait a year or more (HSI 105).

The HSI survey is conducted by the Indian Institute of Management Bangalore-Century Real Estate Research Initiative (IIMB-CRERI) which was set up through a grant from the Century Real Estate as well as Magicbricks.

Reasons Why Investing in Real Estate – Something is a Wise Choice

Whether the Indian market is booming or busting, there is one kind of market where you can always find deals and make money: the real estate market. This market is arguably the best market that a person can seek to invest in, and in this article, we are going to outline the reasons for why that is.

Furthermore, we will show you some of the myriads of ways that you can get your feet wet with real estate investing. Another thing that makes the real estate market so great to invest in is that you actually don’t need a lot of money to get started, which makes it great for young people.

Reasons Why You Should Invest in Real Estate From a Young Age

As I mentioned above, real estate is arguably the best investment that an investor can make. This is because real estate does three (and maybe four) things:

  1. It generates cash flow.
  2. It builds equity.
  3. It allows for depreciation.
  4. It can potentially appreciate in value over time.

Furthermore, if you decided in your twenties to invest in real estate directly through rentals and the like, many young people are actually able to qualify for a Federal Housing Administration (FHA) loan that only requires a 3.5% down payment and has a traditionally low-interest rate. That makes the real estate market really accessible for people who may not have the 20% down payment that a bank would charge for a mortgage!

Real Estate Produces Cash Flow

Cash flow is, by definition, the movement of money via revenues and expenses. Real estate investing provides an investor with the opportunity to generate positive monthly cash flow. If you directly purchase a property and then rent it out to tenants, it is highly possible that the rent you charge will pay off all of the monthly expenses for the house and even chip away at the mortgage for you. On top of that, you may get to keep a little bit of positive cash flow for reinvesting each month! Of course calculating your monthly expenses and accurately forecasting how much you can charge in rent prior to purchasing any property is critical to making sure that the properties you purchase will be cash flow positive.

Real Estate Builds Equity

As that cash flow is continually generated, your mortgage on your property will be paid down a little bit each month. Over time, as those mortgage payments begin to chip away at the principal of the loan, you will accrue equity in your property. This equity can be used as a store of wealth, as a back-draw for loans, and even as collateral in other types of agreements.

Real Estate Can Be Depreciated for Tax Purposes

This is where purchasing real estate becomes really exciting. The government currently allows a commercial property owner (someone who buys properties for investments) to depreciate their property over a designated time period. This depreciation can be applied against one’s tax bill each year in the form of a deduction.

It is this principle of depreciation at work in real estate that really leads investors to think of investing in real estate as " generating money out of thin air ", which is sort of what depreciation is.

Real Estate Can Appreciate in Value

Finally- the icing on the cake. If you are able to purchase properties in the right price and at the right time in the right locations, you will find that those properties will appreciate in value over time. While this appreciation can’t always be expected, it is possible that your equity in the properties you own will increase as a result of appreciation.

How You Can Invest in Real Estate

Now, all of the benefits that I have just described have mostly applied to rental real estate, which is sort of like the " ultimate form " of real estate investing because it offers so many perks. However, not everyone is cut out for being a landlord and managing tenants. With that said, there are a couple of other ways that you can invest in real estate without having to manage it directly.

Direct Partnership Plans

Direct Partnership Plans, or DPPs, are another type of investment that allow investors to get in on real estate (as well as other sector) action without having to directly manage anything. Under this type of investment, an investor will subscribe to being a limited partner with an investment firm.

That investment firm, made up of general partners that manage the day-to- day activities of the firm, will aim to fulfill an investment objective as laid out in their prospectus. Limited partners (i.e. you) are allowed to share in the profits (and losses!) of the partnership but are limited only to losing their principal investment.

General partners are encouraged to manage the business well, because they usually have much higher liability than a limited partner if the business fails. Also, limited partners are not allowed to be involved with the day-to- day activities of the investment company or they could lose their rights to their limited partner status.

Festival Blues? 10 Tips to Fight Anxiety

Festivities and holidays always come tagged along with joy, warmth, and connectivity, but can also be equated with major sources of anxiety and sadness.

Experiencing holiday blues is a familiar phenomenon for most of us and maybe hitting folks extra hard this year.

At a time where we all may be looking for some sort of light at the end of this long, dark tunnel of the outbreak, we must not let the feelings of bleakness take over our minds.

To steer this season without allowing the negatives to sabotage our mental health, we must slow down to carve out some time off for ourselves.

Here are some guidelines that will facilitate in helping you uphold your mental well-being while you celebrate during such challenging times:

1. Learn to schedule ‘anxiety time’

It’s nearly unmanageable to avert feeling, some degree of worry when you are living through a pandemic.

To cope with that anxiety, it is recommended to make a note of all the worries that have been popping into your head and setting aside a designated ten to fifteen minutes to worry about everything.

Once your time is up, you must overlook that list and start thinking about a new one for your upcoming worry session.

Learning to schedule fears will help ease your tense mind.

2. Practice gratitude

None of us know what exactly does the future has in store for us. This is a reality that can be overwhelming.

Hence instead of becoming paralysed by what you can’t control, you must try and bring your attention back to the present moment and be thankful to all of the people, things, and experiences that make you feel gratitude.

In spite of adverse situations that we all have been experiencing, there are still plenty of things for us to be appreciative of.

3. Keeping the festive spirit alive

One of the healthiest things we can do to keep ourselves and our minds healthy during this time is to simply accept that festivities will be different this year.

Celebrating a bit differently than usual can also help in recharging your emotions. For example, scheduling remote celebrations over video calls or exchanging creative virtual giveaways can give you a sense of connectivity.

4. Take charge of your emotional health

We are fervent about getting the basics right when it comes to sustaining good mental health.

This boils down to three elements like proper sleep pattern, healthy diet, and physical activity.

Each of these elements can have a huge impact on the significant hormones and chemicals that influence our mind’s wellness.

When we are well-rested, physically fit, and nourished, we are in a much better place emotionally to handle life’s challenges and stressors.

5. Do something new

If you have been undergoing a hard time finding calm amid the storm of the pandemic, you must take a moment to let your mind wander.

You must consider if there is anything that you always wanted to try your hands on, but couldn’t.

Trying out new things can help us in leaning into major changes instead of resisting them.

6. Prioritising for self-care

Sustaining a routine can be challenging, but zeroing in on what self-care looks like for you is an optimal place, to begin with.

Catching up on plenty of sleep, healthy eating, resetting your mind by avoiding screens, physical activity, and practicing mindfulness are the cornerstones of self-care care that help manage your thoughts when you are feeling overwhelmed.

7. Say ‘NO’ to undesirable thoughts

We usually tend to set boundaries such as ‘I will call instead of visiting my extended family this festive season to keep my household safe.’

Although we are happy with the boundary that we have set, we continue to stress ourselves over what we are not doing rather than what we are doing.

These self-critical negative thoughts need to vanish since it is counterproductive to the festive season that should be a healing period, rather than a period of stress.

8. Embrace new traditions

It is totally normal to feel frustrated when much-anticipated family events are getting cancelled or modified in the name of public health. But allowing that to get stuck in your mindset, won’t change the situation.

Once your mind has processed those feelings, you have the opportunity to find new ways to make your festive cheer all the more special.

Instead of dwelling on what did not happen, take some time to brainstorm different ideas for making this year’s unusual celebration one to remember.

9. Be empathetic towards others

Doing something kind for others can actually boost your mood and feelings of self-esteem.

This upcoming festive season, go out of your way to do something kind for a person in your life. Even small gestures like celebrating with a neighbour who lives alone can help uplift your mood.

10. Reaching out for help when you need it

Asking for help when you need it is essentially one of the bravest things that you can do for yourself.

Talking about your emotional problems with a trusted friend, family member, or even a mental health professional can help you feel at ease.

Source – www.rediff.com

India’s Top Travel Destinations for 2021

Travel firm Thomas Cook India and SOTC Travel recently surveyed over 4,000 customers across Indian cities to identify emerging consumer behaviour and trends that will drive travel preferences in the COVID era.

The survey covered consumers of India’s top 8 metros, mini metros like Pune and key Tier 2/3 markets of Jaipur, Indore, Tiruchirappalli, Madurai, Nagpur, Surat, Baroda, Bhubaneswar, Lucknow, Chandigarh, Mysore, Coimbatore, Visakhapatnam, Guwahati, Patna, etc.

Interesting insights on travel behaviour and customer expectations from the Third Holiday Readiness Report (June 2021):

  • A significant 69% respondents indicated keen interest to travel in 2021 post ease in restrictions with 18% ready to travel immediately post unlock and 51% within 3-6 months.
  • 81% respondents reiterated their need for refundable/zero cancellation products.
  • 70% respondents ranked health and safety as a key consideration.
  • 66% respondents are willing to increase spends to ensure higher levels of health and safety on their holiday.
  • ‘Re-sanitation of rooms’ was selected by 52% respondents as a key requirement.
  • Fully vaccinated hotel staff and drivers was a need highlighted by 48% and 34% respondents, respectively

Demand for both domestic (54%) and international (46%) destinations

Among top preferred destinations in India are Kashmir, Leh-Ladakh, Himachal, the Andamans, Goa and Kerala.

Dubai-Abu Dhabi, the Maldives, Mauritius, Thailand and Europe are popular choices abroad.

These destinations were selected based on announcements of unlock/easing of travel restrictions.

As for the duration, 35% respondents chose holidays between 3-5 days; 52% for 6-12 days; 13% for a holiday of over 12 days.

62% respondents preferred to travel with family/friends; 20% as couples/solo and 18% in a vaccinated group.

Preferred mode of bookings

77% respondents continued to express strong preference for interaction with an expert for guidance/reassurance.

27% opted to purchase holidays through retail outlets; 17% for home service; 33% preferred a contactless experience of a virtual store/video chat 23% opted for bookings via Web site/app.

 

Source – www.rediff.com

How Home Automation Makes for an Easy Way of Life

Home automation happens to be one of the multitude of tasks that are becoming easy thanks to the internet. This process to explain simply would be to automate the inner workings of a house using technology. All the gadgets that we use inside our homes to ensure that our day to day lives go on without a hitch contribute to this process. The coming together of various technologies and gadgets to help us finish tasks which were previously time consuming is just one facet of home automation.

Home automation has made science fiction of the yesteryears the reality of today. What one thought was just an idea on the pages of a book or a movie a few decades have become something that we can’t do without today. A fine example of that would be the touch screen technology. No one would have thought this was possible about a decade or so ago. But this technology has really changed the way we live our lives today.

Touch screens aren’t the only things to come out of the human imagination. Many other technologies have become an integral part of our lives and have invaded our house. One such thing is the internet. It is very hard to imagine life without the internet. We watch movies, communicate with one another and carry out a multitude of tasks thanks to this technology.

The Internet of Things is making a whole bunch of things possible within the house. This technological advancement can mean a lot of things for the home owner. It allows all the gadgets inside a home to communicate with each other to ensure that you have a smooth living situation. This means that a wide variety of gadgets can come together and be programmed to ensure your comfort. It could be as simple as turning on the lights and air conditioning before you enter your apartment after a long day at work so that you get greeted with the right indoor temperature to ensuring that your property and belongings are being constantly monitored and protected from robbers.

Security and constant vigilance are an integral part of home automation. There are home security systems which can constantly monitor your living space to ensure that you don’t fall prey to those who are bound by greed and covet what is not theirs. A wide range of gadgets from CCTV cameras to digital safes and locks can make your home a safe haven for your family. These full blown security systems can alert the police if there is a break in among other things. It has become a necessity to install these systems rather than a luxury. You need not blow up a lot of money on these and go for budget friendly options if money is a problem.

Home automation is all about making your home smart so that you can uncomplicated your life. If you make smart choices you can rest assured that your time and energy can be saved and focused on things that matter.

Six Things to Remember When Applying for a Home Loan

Nowadays, buying homes is no longer an impossible feat. Financial and Non-financial institutions readily provide home loans at attractive rates to prospective buyers. However, there are certain aspects that need to be taken into account before applying for a home loan.

Know your Loan Eligibility:

Typically, Banks can sanction up to 80% of the property value as loan amount subject to your past history in paying credit card dues, home loans, if any, and your current income. Another point to note here; while calculating your net income, banks usually exclude heads like Leave Travel Allowance (LTA) and medical allowances as employees are expected to use them for personal consumption. Only that part of your income will be considered which can actually be utilized to pay off the loan amount.

Know your CIBIL Score:

Your home loan eligibility also depends on your credit score. The Credit Information Bureau India Limited (CIBIL) scores every individual on a scale of 300 to 900 depending on his/her past credit history, management of accounts, management of previous loans, if any, history of any bounced checks, etc. Usually a score of above 700 is considered acceptable for sanctioning of home loans. All financial and non-financial institutions make it a point to check the CIBIL score before sanctioning a loan.

Types of Interest Rates:

There are two types of interest rates – fixed and floating. It is important to understand the difference between the two as these will have a profound impact on your monthly EMI amount. Fixed interest rates are immune to changes in the market conditions and will stay stable throughout the loan tenure, and hence are advisable if interest rates are likely to increase. The floating interest rates change in response to fluctuations in the markets. Therefore, it would be sensible to choose this option if interest rates are predicted to fall.

Loan Tenure:

The calculation of monthly EMI on home loans is based on the loan amount, the interest rate on loans and the tenure. There is an inverse relationship between the EMI and the loan tenure. That is to say, if the loan tenure is long, then the EMI amount will be less on a monthly basis and vice versa. However, it is also to be noted that there is a direct relationship between the tenure of the loan and its interest rates. So, if you opt for a longer tenure, then the amount you pay as interest will be much higher than if you opt for a short tenure period. Hence, careful analysis of different permutations and combinations are needed before you make a decision.

Choose the Lender With Care:

Do careful research before settling on a lender. Look for things such as terms and conditions of offering a loan, the interest rates, loan repayment options, customer service, charges for termination, etc., and go for the one that offers you the best package.

Read the Agreement Documents with Care:

Make sure you read the loan contract carefully with special attention to the small print before signing it off.

These tips can go a long way in simplifying the loan approval process and bringing you a step closer to possessing your dream home.

The Beginning of A New Era In Indian Real Estate

With three revolutionary reforms, GST (Goods and Services Tax), Real Estate (Regulations and Development) Act and Pradhan Mantri Awas Yojana, favoring the interests of the common man, the sun seems to have finally risen on the Indian real estate. All these reforms, acts, and policies launched by the government in the past 2 years point in the direction of a new era that would mark the transformation of real estate from a developers’ market to a buyer-driven marketplace. A more empowered buyer would be born and property market would be focused in his interest. Houses would become affordable, transactions would become transparent and trust in real estate would be rebuilt in the buyer’s mind in this new era; all because of the three reformative acts. Let’s have a glimpse at them to understand how they would change the face of Indian real estate.

Goods And Services Tax

Goods and Services Tax aka GST is a ground-breaking tax reform that has been enforced in India on 1st July 2017. It would subsume around half a dozen indirect taxation levied by the Center and the State like VAT, Service Tax, Stamp Duty etc., that used to lead to cascading or doubling of tax. The government has put the under-construction projects under the 12% GST slab that would be a sigh of relief for all the prospective homebuyers. The anti-profiteering clause in GST law would ensure that the benefit of the tax reduction because of GST is passed on to the buyers at all costs. The elimination of ‘tax on tax’ or tax cascading would be one of the biggest benefits of GST on Indian real estate that would gradually lead to lowering of property price in India.

Excluding stamp duty, a homebuyer, before GST implementation, had to pay a total of 11% tax; the actual tax might have increased by less than 1% but the homebuyers are rejoicing because of the clarity and transparency brought in by this tax reform. “GST itself is expected to add about two per cent to India’s gross domestic product (GDP). That is a substantial boost to the economy. If the economy does well, obviously, there will be more demand for real estate, and it will be a boost for the sector,” says Ankur Dhawan, Chief Business Officer, PropTiger.com.

Real Estate (Regulations and Development) Act

Real Estate (Regulations and Development) Act aka RERA has been implemented in the Indian real estate on 1st May 2017. As per this new regulatory law, all the builders and developers would have to register themselves with the State Regulatory Authority and those who fail to do so would face cancellation of their real estate license. The Real Estate Act is to empower the property seekers and homebuyers to raise a voice against the unscrupulous builders or developers.

This Act would bring transparency in the real estate in India and enable the aggrieved buyers to seek redressal from the builders. Builders who delay the project, use one project’s money into another project or even drop the project would have to pay interest to the buyers owing to this revolutionary act. Timely completion of projects, ease of inquiring, complaint registration and the transparency brought in by the RERA Act would rebuild the trust of people in the real estate sector.

Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana aka PMAY is the torch-bearer of PM Narendra Modi’s dream of “Affordable Housing For All By 2022”. This mission came into force on 25th June 2015 and seeks to provide affordable housing to all the citizens of India by the end of 2022. To fulfill this mission, the Indian government is coming up with new and affordable housing schemes so the people of India, especially the low and middle income group of the society, would be able to have a roof over their heads.

The government has decreased the home loan interest to 6% for those who want to take a loan for up to INR 9 lakhs and for those desiring a loan of up to INR 12 lakhs, can now get it at a 3% interest rebate. If the homebuyer complies with all the conditions put forward by the government, he/she can avail these attractively affordable offers and have a roof over their head in no time. A trigger in the home buying process would be seen gradually and people would now be investing their money on cheaper EMIs instead of paying house rents.

These three reformative acts, i.e., RERA, GST, and PMAY are bringing transparency and building trust of people in real estate India. They have opened the doors to a new era where homebuyers could get homes at an affordable price and would not hesitate from making any purchase decision.

Real Estate Industry in the World in COVID-19 Pandemic

The real estate industry is undergoing a tremendous transformation, and these changing trends will directly affect both buyers and developers alike. Despite the uncertainties in the economy, the market has witnessed considerable growth in the past year. Let’s now look at the changes that are likely to happen in the real estate sector in the post-COVID scenario.

Innovation

Technology is constantly evolving, and there is a continuous scope for innovation across all business segments. In the real estate business sector also, product innovation plays a key role in business success. Nowadays various technological developments are enabling builders to maintain resilience and business stability. The post-COVID world will demand a higher measure of safety and sanitation within the housing premises. For this, builders may have to think ahead and incorporate structural and operational changes within the projects. The latest technologies like artificial intelligence and virtual reality are likely to become handy when it comes to developing futuristic projects.

Revised Govt Policies

The government has taken various measures to support the real estate sector during the corona crisis. A special economic package of Rs 20 Lakh Crore has been announced by the Prime Minister with an aim to make India self-reliant. Following are a few amendments put forward by the government during the past year to boost the growth of the real estate sector.

  • The finance department had announced a one-year extension of PMAY Scheme which is a Credit Linked Subsidy Scheme (CLSS) for the middle-income group. The last date for availing this scheme was changed from 31st March 2020 to 31 March 2021. This rule amendment is expected to benefit an additional 2.5 Lakh people who are in the Lower & Middle-Income segment.
  • The finance ministry has announced various incentives to strengthen the construction and housing sector in India. All central agency contracts have been extended by up to 6 months and take measures to ease cash flows for contractors.
  • To strengthen the affordable housing segment, the government has announced affordable rental accommodation schemes for migrant workers and the poor. Various incentives will be offered to manufacturing units and other industries to build such affordable housing units.
  • To provide some relief to developers who are struggling to complete the project within the RERA stipulated timelines, a six-month extension will be given considering COVID-19 as an ‘Act of God’ and ‘Force Majeure’.
  • The government has launched a ₹30,000-crore special liquidity scheme for non-banking financial institutions to provide credit support to the sector amid the coronavirus crisis. Under the Rs 30,000 crore special liquidity scheme, the minister said investments will be made in both primary and secondary market transactions in investment-grade debt papers of these institutions. This will help to provide liquidity support to these companies.

 

Digitalization

Owing to the increasing use of technology and online media, realtors are now focusing more on enhancing their digital presence than ever before. It’s proven that digital media platforms ensure business continuity for real estate companies despite the ongoing crisis. Users have become well-adapted to mobile phones and other gadgets through which they gain access to a large pool of information about properties. To keep up with this trend, most of the developers are now adopting a digital-first marketing approach to tap more customers online. Google and social media platforms like Facebook, Twitter & Instagram have become the most popular marketing channels for realtors. Digitalization will play an important role in fueling the growth of the Indian real estate sector.

With these changing market trends, the realty sector is not going to be the same in the post-COVID world. Moreover, the concept of owning a home has gained much importance in these uncertain times. The pandemic season has changed the way people live, work & play and all this will have a collective impact on the demand in the housing segment.  Thankfully the real estate sector in India responds to these changes quickly and adapts to newer technologies without much resistance. We hope that once the situation gets better, the industry will bounce back with more vigor.