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Impact of the Statue of Unity on Real Estate in Gujarat

Sep 3,2019 / By / No Comment
Statue of Unity in Gujarat

About Statue of Unity:

Sardar Vallabhbhai Patel’s statue is also known as the Statue of Unity. It is situated in the Indian state of Gujarat. Sardar Vallabhai Patel (1875–1950), who was the first Home Minister of India. After completion of the construction work, his statue is the world’s tallest statue standing at a height of 182 meters.

The project was first announced in 2010 and the construction of the statue began in October 2013 by Larsen & Toubro, who received the contract for Rs 2,989 crore from the Govt of Gujarat. The sculptor was designed by Indian sculptor Ram V. Sutar.

The statue is located at the shore of the Narmada River facing the Sardar Sarovar Dam. The statue was inaugurated by Prime Minister Narendra Modi on October 31, 2018, on the 143rd birth anniversary of Sardar Vallabhbhai Patel.

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To support the construction of the statue, the Statue of Unity movement was started to support the construction of the statue. This movement helped a lot to collect the iron needed for the statue. By asking farmers to donate their scrap farming instruments. It is heard that by 2016, a total of 135 metric tonnes of scrap iron had been gathered. Out of 135 metric tonnes, about 109 metric tonnes of it were utilized to make the foundation of the statue after processing.

On 15th December 2013, a marathon entitled “Run For Unity” was held in Surat and Vadodara to support the project.

The world’s tallest “Statue of Unity” is a pride of India and a decent honor to the fearless who undivided and integrated India, our precious Sardar Vallabhbhai Patel. He was highly respected for his leadership in uniting the 552 states of India to form the single Union of Indian.

Real Estate market of Gujarat:

Gujarat is known for its rich culture and has a population mix of professional and business class. It is well-known for the industrialized state. It is home to many prominent cities including Ahmedabad, Jamnagar, Mandvi, Gandhinagar, Surat, etc. The city of Gujarat has made rapid progress in real estate developments.

The transformation of Gujarat has been slow and steady but today anyone who is visiting the state can see skyscrapers buildings and malls in place of old aged residential and commercial buildings.

Day by day growing employee demand is pushing up the rental markets in Gujarat as well as real estate capital values in the city. Rentals at famous locations such as Ahmedabad or Jamnagar can range from Rs.8,000 to Rs.15, 000 per month for 2/3 bed-room units, while purchase prices for the same can range in between Rs.17 to 30 lakhs onward.

At the same time, real estate developers betting big on affordable homes in Gujarat. As per  Gujarat Real Estate Regulatory Authority (GujRERA), 1/3rd of all the realty projects registered with GujRERA fall under the affordable housing category. Among 2000 affordable housing projects, 880 are only residential and 820 are mixed-use with residential and commercial units.

The Statue of Unity and its Impact on Real Estate Market of Gujarat

Impact of the Statue of Unity on the Tourism Industry:

The government’s plan to set a large tourism center on the routes of the Kutch. The winter festival near the statue will boost tourism in the region. This tourism center will offer adventure activities and water sports to the tourists such as world-class light and sound show with musical fountains. In the first place, basic infrastructure such as a tent city near Sadhu Bet will come into view with 250 tents that will remain operative during the year.  The site will attract foreign tourists and holds the potential to be developed as an eco-tourism site. The Statue of Unity is fair to draw numbers of foreign tourists along with domestic visitors across India and is creating huge revenue for the country The Gujarat government has made every effort to develop the entire neighborhood as a world-class tourist center.

Infrastructure development:

The government’s decision to construct basic tourist infrastructure at different destinations in the State such as the Narmada district. It will surely boost their attractiveness index. It will not only spark commercial real estate growth in the region, but it will also offer an endless chance to add to social development and stability, all-around economic growth and heritage conservation.
The development of transport modes to reach the location will gradually propel both commercial and residential growth in the nearby areas.

As of now, there are several projects in the card to assure that this place turns out to be a popular tourist point. A world-class zoo will be developed across 1,300 acres over seven levels by the name Sardar Patel Zoological Park near the statue.  Moreover, there is a plan to start boating activities near the statue as a jetty is being constructed in the Narmada.

Employment Creation:

It’s not just about India’s pride in building the tallest statue but it’s about creating employment and revenue for the country. At the same time, it will create new business opportunities for the people living in nearby areas.

An increase in tourism and other related sectors will create huge employment opportunities for the locals and tribals living nearby the Narmada district. As of now, it has been decided by the state govt that the tent city will employ at least 15% locals. Going forward, training is also being provided to guides to face the increased tourist traffic that is hopefully to be generated after the inauguration of the statue of Unity. On the other hand, to flourish tourism center, the employment of qualified and skilled manpower is required which will be a serious task for the government.

Growth of allied sectors:

In the last few years, it has seen that the tourism and hospitality sector attracting investments worth Rs 11,000 crore. Increased tourism activities due to the newly-inaugurated Statue of Unity will create a way for establishing new industries in the associated sectors such as hospitality, transportation, and handicrafts. A 3-star Shrestha Bharat Bhavan hotel has already been built near the statue.

Conclusion:

As of now, there are several projects in the card to assure that this place turns out to be a popular tourist point. A world-class zoo will be developed across 1,300 acres over seven levels by the name Sardar Patel Zoological Park near the statue. Moreover, there is a plan to start boating activities near the statue as a jetty is being constructed in the Narmada. Local businesses have been seen in lots of progress. Earlier nearby restaurants used to remain profitable only during monsoon while dam overflowing. An increase in transport, restaurants, accommodation, and other service sectors will turnaround and will improve the economy of India.
Navagam, Gora Colony, Vasantpura, Thevadia, Nana Thavadia, and Mokhadi are nearby localities to the Statue of Unity.  The Gujarat government has made every effort to develop the entire neighborhood as a world-class tourist center. Once these projects will be in place, will change the outlook of Gujarat real estate market.

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Ghaziabad Civic Body Slashes Flat costs over 50% in Madhuban Bapudham

Aug 5,2019 / By / No Comment
Madhuban Bapudham Yojana

Ghaziabad Civic Body Slashes Flat costs over 50% in Madhuban Bapudham

Good news for you if you are planning to buy a house in Ghaziabad. Now you can buy EWS and LIG Flats of Madhuban Bapudham Yojana at 55% lower price. Ghaziabad Development Authority (GDA) is launching a one-month long online scheme on August 5. The applicants whose name will be selected will get EWS for 4.5 lakh and LIG flat in 10.80 lakhs.

Ghaziabad Development Authority (GDA) has housing units in Indirapuram, Swarnjayantipuram, Vaishali, Nandgram, Indraprasth, and Madhuban Bapudham. The reason behind issuing of the scheme is to attract home buyers for some time now as GDA’s properties have failed to attract buyers in the past.

To attract home buyers for its properties, the Ghaziabad Development Authority had planned to framework a Madhuban-Bapudham housing scheme in 2004 after getting 1234 acres of land. Later, in many pockets, EWS and LIG have been built. Out of this, 466 EWS and LIG have not been sold yet. Now the Ghaziabad Development Authority slashed the flat rate following a state government’s order.

An EWS flat that was previously priced nearly Rs.10 lakh will now be available for Rs.4.5 lakh. Similarly, the price of a LIG flat has been decreased from Rs 23 lakh to Rs.10.8 lakh.

As per the GDA official data, there are 296 EWS and 170 LIG flats in Madhuban Bapudham. Those whose annual income up to Rs 3 lakh can apply for an EWS flat; for LIG flats, the limit is Rs 6 lakh per annum. The scheme will be opened to the public for a month from August 5 2019.

At the same time, the authority was selling them according to the cost experienced in making them. Earlier, the state government has instructed the EWS and LIG buildings to be sold according to the mandate.

It is really a big step to provide affordable houses to its residents at such a lower price. Besides, the selected applicants will have to pay just 10% initially and the rest of the balance amount can be paid in instalments in a given time period.  GDA officials say that the first price was double, but now the price has been cut.

Image Sources: livehindustan.com

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Should I Buy An Under-Construction Flat or Ready-T0-Move-In Bangalore?

Jul 31,2019 / By / No Comment
rtmv2

Why one should buy an under-construction flat over ready-to-move-in Bangalore?

Buying property is an important decision for all. It’s an emotional decision which can be taken very cautiously. You are not going to switch your home in the next few years after buying, rather you will not sell it off except you get a better deal or need a bigger home.

The resale housing market, especially the new, ready-to-move-in section, gives home-buyers a chance to avoid the risks of buying under-construction properties that are likely to extreme delays.

Ready-to-move-in properties reduce the chances of getting cheated, apart from offering other benefits.
Ready-To-Move-In flats are more expensive than an under-construction flat in the same locality. You should have a strong financial position for a ready-to-move-in flat, as you would have to pay the full cost of the property before the builder handovers you the keys. Your home loan should be sanctioned, and EMIs on the full loan amount will start instantly. On the other hand, an under-construction flat has an easier payment method, as you would have to make staggered payments spread over the years.

This is, perhaps, the only positive for an under-construction flat, however. “The price gap between RTM and under-construction apartments has narrowed considerably because of the supply overhang

If you are planning to buy a property, you would get lots of options. But there is an advantage in choosing a ready-to-move-in property. Below we are listing a few of its advantages and disadvantages:

Advantages of Ready to Move in Property:

  • Immediate Authority on Your Flat Purchase: In case of ready-to-move-in property, you can instantly move into your new house. You will immediately get the possession of your home, what you have paid for whereas for an under-construction property you have to wait for 3-5 years for the flat to be delivered.
  • Low-Risk Involvement: In a ready-to-move-in property there are no risks of delay possession. While in the case of under-construction property, project delays are much more common and there are many cases where a builder has duped buyers. So, you need to be cautious while choosing a builder for an under-construction property.
  • Instant Relief from Paying Rent: Once you relocate into your new home, you won’t have to pay any rent. All you have to pay is EMI for your home loan. While in an under-construction property, you will have to carry both EMI and Rent for a number of years.
  • You will get what you will see: An under-construction property is sold on papers. Sometimes, there can be some discrepancies in the final outcome and what you were promised. On the other hand, in the case of ready-to-move-in property, you will first see and inspect the product and then only you will decide to buy it or not.
  • Immediate Tax Benefits: In a ready-to-move-in property you can challenge tax exemption on your home loan on both principal and interest repayment instantly while tax benefits on home loan for an under-construction property can be claimed only after you get the flat possession.
  • Only EMI With No Down Payment: The most helpful thing about ready-to-move-in property is that you will have to pay EMIs on the home loan, and would include no other payments. In case of an under-construction property, EMI normally begins after completion of construction work. Despite this, if there is any delay in the construction, then the EMI will start once the home loan gets dispensed.
  • Check The Infrastructure And Other Facilities: When you are buying a ready-to-move-in property, you can check the infrastructure and other facilities around the flat before buying the property.
  • No increased cost: This is another advantage of buying a ready-to-move-in property as you are not supposed to pay the increased cost of the property after paying the booking amount. But in the case of under-construction properties, you have to bear the increased cost of the property.
  • Buy within Your Budget: In a ready-to-move-in property, you can select a property within your budget. If you have a lower budget, you can buy a home that fits into your budget. Whereas, when you buy an under-construction property if the project got delayed for three or more years the builder asked for increasing the cost of construction which you have to bear and it increases your overall budget.
  • No GST: Taxes play a crucial role in buying a property. Currently, a buyer does not pay any GST while buying a ready-to-move-in property. An under-construction flat, on the other hand, attract 12% GST. So, if you buy an under-construction flat worth Rs 60 lakh, you will have to pay Rs 720,000 as GST.
  • Rental income: If the flat you’ve bought as an investment and not for personal use or, if you are planning to move in later, you can rent it out and make some rental income. You can use the rental income to pay your EMIs or keep it as a rental income.
  • Ease of selling: It is difficult to sell an under-construction property, especially if its possession is delayed or it’s involved in litigation. In many cases, developers do not allow the transfer of apartments until the project is complete.

Disadvantages of buying a ready-to-move-in property:

  • High Property Cost: One of the major drawbacks of buying a ready-to-move-in property is the higher cost as compared to an under-construction property. The cost difference could be anywhere between 20-30%.
  • Construction Quality: It is very easy for an under-construction property to analyze the work progress and thus being aware of the quality of construction in terms of the material used, the strength of the foundations etc. But you can not conduct any such inspection in a completed flat.
  • Age of The Property: Buying a ready-to-move-in property might not always ensure you a brand new home like an under-construction property. The flat which you have bought might be up for sale for a long time. Therefore, if it has not been maintained properly, it might look old.
  • Exclusion from RERA: An old ready-to-move-in flats with Occupancy Certificate as on 1st May’ 2016 have not been included under RERA. Thus, its promoters are not accountable to make its information available on a public platform.
  • The under-construction projects are no less in terms of quality and cost if you do all your due diligence on the project such as price, location, developer, and other related aspects. The under-construction projects offer a higher return than a ready-to-move-in-property.

Advantages of buying an under-construction property:

  • Cost-effective: The cost of a property for the buyer is one of the most important things. An under-construction property is likely to cost less than ready-to-move-in properties. Buyer will get many options of under-construction properties. It is also true that possession gets delay but cost worth. With RERA in place, developers must deliver on time and if they don’t they are responsible for compensation to buyers. Post RERA, there is an added advantage of booking a unit in an under-construction for the buyers.
  • Good Appreciation on Investment: Since you are buying your property at a lower cost, the appreciation is expected to be higher. As the construction work in progress, the cost of your property also increases. For good returns on their investment, one should check the location, upcoming infrastructure and employment hubs situated nearby.
  • Payment Flexibility: While buying a ready-to-move-in property, a buyer has to pay the entire amount one chance. There are stamp duty, registration charges and other miscellaneous expenses as well. But at the initial stage for an under-construction property, you are paying 10-15% as a booking amount for under-construction properties. You pay EMIs to the bank in case the property is financed or else you pay as per the construction plan.
  • Discount and offers: It is very difficult to get a discount on a ready-to-move-in property. It is a complete house and you need to pay the cost as per the market and even more depending on the amenities. However, if you are buying in an under-construction project, there are several discounts and freebies offer such as gold coin, modular kitchen, air conditioner, gold coin, free car parking among others. You can also negotiate on the final price.

Disadvantages of buying under-construction property:

  • Under-construction properties are usually in the under-developed parts of the city and therefore, the capability for price appreciation due to future development is always good. However, this is not true in each and every case. Earlier, buyers have stuck in lots of litigation cases after buying under-construction properties. Before buying an under-construction property, one must have to look at the location and coming plans around that area. Apart from that, in an under-construction project, a buyer also has flexibility in payments, with options like construction-linked plans, subvention schemes, flexible payment plans, etc. Below is the list of disadvantages for an under-construction property:
  • Delay Possession: This is one of the most common issues related to under-construction projects. In most cases, the project got delayed due to various reasons and in this situation, the buyers face the consequences. Generally, the builders projected a maximum of 3 years timeline to complete the project. But in maximum cases, the project got delayed for more than 3-5 years.
  • The increase in property costs: This is another common problem faced by the people who book an under-construction property. If the project got delayed for even 2-3 years, the builder asks for the increased cost for the property. It is a kind of burden on you as you were expecting a certain amount to be paid once you got the possession of the property, but because of the delay in the construction, you have to bear the increased cost of the property.
  • Compromise with quality: When the builder shows you the sample flat, it is usually built with all possible facilities and with the best quality products. With time, you make an expectation of getting the same quality of work done within your home, but when you get the real home you find that it is much different from the promised one as the builders don’t use good material in construction. This type of situation arises very rarely and with unprofessional developers. After the implementation of RERA, a builder cannot change the building approval plan once sanctioned and display the same on their website.
  • False projection & promises: This is one of the most common and biggest issues with under-construction properties. The builders make numbers of promised to the customers related to infrastructure and amenities within the society, but in most cases, you don’t receive what you have been promised. But after implementation of RERA, the builder has to offer what he has promised during the agreement. A builder cannot change the building approval plan once sanctioned and display the same on their website.

What does CommonFloor data say?

As per CommonFloor research and analysis, we have selected four top real estate destination of India and found that Under-construction property rates are cheaper than ready-to-move-in. Why? Our builder is busy constructing the apartment and the locality around this apartment also develops with time. A few years later your apartment is ready and you take possession of it in a posh locality.  Under-construction flats give you bargaining power. You can negotiate with the builder for a cheap flat. Here is the list of top 4 localities and its rate as per BSP:

Locality

City

Avg Sale Price (RTM)

Avg Sale Price (UC)

Sarjapur

Bangalore

4,615

4,494

Whitefield

Bangalore

6,556

6,345

Hi-Tech City

Hyderabad

6,015

5,873

Rajarhat

Kolkata

4,923

4,476

Sector 104

Gurgaon

5,671

4,397

Price analysis between Ready-to-move-in Vs Under-construction:

RTM vs Under-construction2

From the above data, we found that the rate of an under-construction property is much cheaper than a ready-to-move-in property.

While buying a ready-to-move-in property, a buyer has to pay the entire amount one chance. There are stamp duty, registration charges and other miscellaneous expenses as well. But at the initial stage for an under-construction property, you are paying 10-15% as a booking amount for under-construction properties. You pay EMIs to the bank in case the property is financed or else you pay as per the construction plan. There is flexibility in terms of payment and you do not need to arrange a huge amount to buy an under-construction property.

The interest burden on loan:

In an under-construction property, a bank dispenses the loan amount partly to the builder. However, you may be required to pay the EMI on the approved loan amount and not the disbursed loan amount.

EMI for under-construction property permits you to make payments through EMIs, in a partially dispensed loan for an under-construction project. The loan amount is partially dispensed and EMI is fixed as per the approved amount. The period of the loan continues moving up with an extra amount being dispensed. The EMI will continue constantly during the tenure of the loan. Save on interest and secure faster payment of the loan. As your EMI starts instantly after the 1st disbursement, your principal repayment also starts together, by that reducing your interest burden and tenure.

Month

Stage

Amount Disbursed

Pre-EMI

1st Jan

On agreement

Rs 10 L (20%)

Rs 8,750

1st July

On completion of foundation and ground floor

Rs 10 L (20%)

Rs 17,500

1st October

On completion of 1st and 2nd floor

Rs 10 L (20%)

Rs 26250

31st December

On completion of 3rd floor and possession

Rs 10 L (20%)

Rs.39935

As explained above, you would pay (8750 x 6) + (17500 x 3) + (26250 x 3) = Rs 2,36,250 as pre-EMI (interest) towards the dispensed loan amount. Your EMI of Rs 39,935 for the leftover 20 years starts from 01-Feb (i.e., a month after final disbursal).

Here are the tax benefits that you can avail when you take a home loan for an under-construction property:

1) As under-construction properties are relatively cheaper, the capitals required for them would be relatively low. Therefore, the EMI payable on the loan amount would also be lesser.

2) As the EMI on the loan is pretty fair, you can increase your monthly instalments to decrease the loan period. This will encourage you to save more on your total interest payment.

3) The person who is taking the home loan can refuse the deduction of the interest amount paid during the pre-construction phase.

4) One can get tax benefits for the stamp duty and registration fee on the property.

5) The interest amount paid earlier to the year of completion is collected and 1/5th of this amount is released as a deduction each year for 5 years from the year of completion. Simply, the interest paid on the home loan during the pre-construction phase can be taken for deduction in these 5 equal instalments.

Recommendation & Suggestion:

You must buy under-construction flats only from builders who have approved from state RERA with a good reputation and established projects. After the implementation of RERA, a builder is responsible to deliver the project on the mentioned time and if they don’t, they are liable to pay compensation to the buyers.

Since you are buying an under-construction property at a lower rate, the appreciation is expected to be higher. As construction progresses, the price of your property also increases.

If you’re planning for under-construction property, estimate your financial position, documents required to purchase and about the developers. It is essential to know your neighbourhood and the available infrastructure around the area such as nearby markets, common public areas and parks, connectivity issues, among others.

If the developer is appreciated, then banks will definitely request you to get yourself a loan. Buying a home can be a risky business, but buying after a good research and thinking about the long term return will be profitable.

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2 BHK Apartment: A most demanding Unit type

Jul 22,2019 / By / No Comment

2 BHK Apartment: A most demanding Unit type

A home is a living space used as a stable habitation for an individual. A role of home and sense of place in a person’s life story can be vital. Time and energy spent in the house will assist to promote the significance of the property. There is nothing like a Home. They become part of our identity. Buying a House & converting it into a Home is the Desire for everyone. A Home not only witnesses all the Cherishing moments spend there but also ties each member of the family into a knot of Faith, Belief & Togetherness.

Buying a new house has always been a superior determination and trends seem to affect one way or other from time to time. As per the market judgment, the Indian real estate market still sees a preponderance of buyers from the intermediate income and high middle-income section of the society and their fancied choice is the 2 BHK apartment with about 40% buyers opting for this particular type of apartment. 2 BHK is the best suited or desired Unit Type as it provides sufficient space to cater to all the needs of a Nuclear Family. Average Size of 2 BHK Apartment varies from City to City.

Ave. 2BHK Sizes

For anyone who is contemplating purchasing a new apartment, it is the most intelligent choice to invest in a 2 BHK apartment, also if the person is unique at the moment. It will allow you more immeasurable expandability along with the better resale worth in the future if necessary. Interestingly, home buyers are more inclined to invest in 2 BHK apartments than in independent villas or builder floors.

Acknowledging the luxury you accomplish a bigger area by spending less money additionally is a fundamental appeal that makes 2 BHK units further prevalent among home buyers. Most of them would prefer to buy a 2 BHK.

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Japan’s Sumitomo bids record Rs.2238 crore for 3-acre BKC plot

Jul 18,2019 / By / No Comment
BKC

Japan’s Sumitomo bids record Rs.2238 crore for 3-acre BKC plot

In one of the biggest investments by an international firm in the Maharashtra realty sector, Japanese major Sumitomo Corporation has purchased a 3-acre plot in the prime locality of Bandra-Kurla Complex (BKC), Mumbai for Rs.2238 crore.

It ends up to around Rs.745 crore per acre and maybe the largest per-acre land deal in BKC, India. The last time a notable bid was placed was in 2010 when the Mumbai’s realty major Lodha Group offered Rs.653 crore per acre for a 6.2-acre (the total bid was for Rs.4050 crore for the (MMRDA plot) land parcel in Wadala, Mumbai. The reserve price for the plot was decided at Rs.3.44 lakh per sq.m.

The plot, “C-65”, relates to the Mumbai Metropolitan Region Development Authority and an offer letter for it was assigned to Goisu Realty Pvt. Ltd. for an 80 years contract. As per the MMRDA official, Sumitomo was the sole bidder for this plot. MMRDA did not find any bidder among local developers even after it had been put on the block for many months due to the liquidity crisis in the local property market.

Founded in 1919, the Tokyo-headquartered Sumitomo Corporation is span across Japan, Asia, Europe, America, Africa, East Asia, and other countries globally, dealing in infrastructure,  transportation and construction systems, realty, chemicals, minerals, energy, metal products, and media.

Maharashtra Chief Minister Devendra Fadnavis and other senior officials from the state government, MMRDA and the representatives from the buyer’s front were already on the event.

As per the property expert, Sumitomo has given an insane price as the company wants to present in a prime commercial market like Bandra Kurla Complex (BKC), Mumbai. The diversified business magnate plans to build a commercial office complex, which might house its Indian units as well.

The MMRDA official said that Sumitomo will be allowed to use a floor space index (FSI) 4 on the plot, providing it with a built-up area of close to 10 lakh sq.ft.

Maharashtra Chief Minister Devendra Fadnavis called the deal as a “win-win” for both MMRDA and Sumitomo, which has opened a new door for global investors. And many more global corporates are expected to show interest in investing in the BKC in central Mumbai with easy connectivity to the eastern and western suburbs and south Mumbai, Maharashtra.

Image Sources: Google

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