Navratra is considered very auspicious time for new deals; prospective homebuyers must bear in mind that realty investment always pays, and one should not wait for prices to fall as it rarely happens—in the Indian market.
As Pitrapaksh comes to an end, are you ready to buy your first-or second-house during this auspicious Navratra days?
This is a time when even the most cynical customers, the habitual nitpickers, start to plan to buy their long-cherished house-they either book a flat during this period, or start their search mission for one.
Realty analysts are of the view that rather than wait for a time when prices fall in the realty market, one must scour the market and book a flat according to one’s budget. For one, an endless wait will only get longer, as prices rarely come down in the Indian real estate market.
Given the trend of rising property prices over the last few years, the price of the property you have shortlisted will most likely keep going up, even as you wait. By all accounts, residential real estate is one asset class whose rates have been steadily rising in most markets.
While analysts have been saying that residential property markets in locations like the National Capital Region and Mumbai are ripe for a price correction, developers have been able to hold on to prices even as buyers wait for a fall. Given the demand-supply imbalance, the trend is likely to continue and your investment will, in all possibility, stand you in good stead even when other assets take a beating.
Nikhil Jain, CEO of Ramprastha Developers, says: “If you are thinking to have your own house or second property, you should not mind investing in the outskirts of your city. With the passage of time, even outskirts become part of the city.”
There are many people in the capital who would tell you that when they bought property in a particular area, it would be invariable without any worthwhile facility; but a couple of hard years later, development invariable happened. And with development, the value of their property climbs manyfold. That has changed the class character of a large number of people. As the rates have gone up in main parts of the city, one should not mind investing in the outer or little unknown areas of the city.
Investment advisers say that, if possible, one should buy another house before retirement. Those who have no pension to fall back upon after retirement must buy another property, as it would give them social security at the later stage of their life. The thinking behind this advice is that if you have more than one property, you can give the second house on rent and earn a good amount by way of rentals.
Those who invest in property cannot be losers; this is especially true for all those who do not get pension benefits in their current profession. It goes without saying that immovable property is a huge asset one can bank upon when the chips are down.
Property can be a great source of income for your retired life or in case you lose your job; lakhs of people have lost their jobs since the global economic crisis a few years ago. There is little doubt that property is a sound investment proposition, provided you make it at the right time.
Nevertheless, experts advise prospective buyers to invest in only those projects whose developers have a proven track record.
Gaurav Mittal, CEO of CHD Developers, says: “I have observed that the number of those buying second homes in the NCR is swelling fast. That is an indication that the present generation knows for sure that investment in property will help their cause if they were to fall upon bad days.”
Devinder Gupta, CMD of Century 21, says: “Between land and constructed property, a plot is a more lucrative option as it is much easier to sell-also, the rate of appreciation is higher. If you live in Delhi, you should not think twice in buying land in any part of the NCR; it is bound to give you enough returns in the future.”
Talking about the Navratra period and the realty market, experts say this is one time when even those people who already own properties, go out and book one more. With jobs hardly permanent in nature, people have come round to the view that a second property is the surest insurance to fall back upon in their old age, and those among them who can afford it, book a second property before they hit 50.
- Realty analysts are of the view that rather than wait for a time when prices fall in the realty market, one must scour the market and book a flat according to one’s budget. For one, an endless wait will only get longer, as prices rarely come down in the Indian real estate market.
- Those who have no pension to fall back after retirement must buy another property, as it would give them social security at the later stage of their life.
How these two income tax deductions apply.
You can claim an income tax exemption on your house rent allowance (HRA) as well as on interest paid on a home loan. Many salaried employees take a home loan to acquire a residential property but do not stay in that property for various reasons. They may stay in a rented premises and be in receipt of HRA from the employer. The exemption of HRA is covered under Section 10 (13A).
The conditions for allowing the exemption on HRA are:
The rent must actually be paid for the rented premises which you occupy The rented premises must not be owned by you
The amount of HRA exempt is the least of:
- The actual amount of allowance received by you in respect of the relevant period The amount by which the expenditure actually incurred by you in terms of rent exceeds one-tenth of your salary in the relevant period
- Half of the salary in the relevant period if the rented house is in Mumbai, Kolkata, Delhi, or Chennai
- 40% of the salary in the relevant period if the rented house is anywhere else
As long as the rented house is not owned by you, the exemption of HRA will be available up to the limits specified in the relevant rules. In case of interest paid on a home loan, the deduction is allowed while computing ‘Income from House Property’. In order to compute the ‘Income from House property’, the net annual value of the property is reduced by 30% and from the balance, the interest payable on the loan taken for acquisition or construction of this property is deducted.
In case the property is given on rent, the annual value will be calculated based on the rent received and the final ‘Income from House Property’ will be calculated. In case the property is lying vacant and is neither rented out nor self-occupied, the rental that could have been derived had it been rented out is taken as the deemed rental income and the calculation has to be then made.
There are a few circumstances under which the annual value of a self-occupied or vacant property is treated as ‘nil’. First, where the property is located in a city different from where you work, and you stay in a rented house.
You will be able to take the annual value of such property as ‘nil’ even though it is not occupied by you.
Second, where the property is located in the same city as your rented house but is in your occupation, and used to live in. In the case of a self-occupied property, the annual value is taken as ‘nil’. The only deduction is on account of interest on housing loan, which is restricted to a maximum of Rs 1.50 lakh.
- As long as the rented house is not owned by you, the exemption of HRA will be available up to the limits specified in the relevant rules.
- In case of interest paid on a home loan, the deduction is allowed while computing ‘income from house property’.
While sales take a dip during the Pitrapaksh, realty companies utilize the time to devise their marketing strategies and campaigns for the Navaratra, which is the most auspicious period for land purchases for the Hindus.
Those who think that all those attached to realty world take a long break during Pitrapaksha must wake up to the new reality.
Admittedly, while sales take a dip, realty companies make strategies to launch their marketing and other campaigns immediately after Pitrapaksh.
Pitrapaksha comes a fortnight before the Navaratra festival and is considered an inauspicious period in the Hindu religious calendar. Throughout the Hindu world, departed souls are remembered during Pitrapaksha. On each day of the fortnight, special offerings are made to ancestors whose lunar date of death corresponds to that particular day.
And once Pitrapaksh is over, Navaratra is considered the best time for the realty world. It is regarded as the most auspicious time for starting any new venture or buying anything new. Of course, Navaratra sees huge sale of properties. And in order to cash in upon the auspicious period, realty companies finalize their strategies to strike gold during Navaratra.
“We update our contact list in this period and also give final touches to our marketing strategies, so that by Navaratra we have inquiries pouring in and deals being finalized,” Ajay Singhal, director of Avalon Developers, says.
Realty companies avoid north Indians during Pitrapaksh; however, they are in talks with other communities, as well as non-Hindus, during this time and canvass their projects and products. “All the marketing guys of brokerage firms follow up on prospective customers. Thanks to the names and castes, they know whom they can and should contact during Pitrapaksh. While most people of this part of the country do not talk about buying flats during this period, others are not that fastidious,” Devinder Gupta, MD of Century 21 DGS, says.
It is not uncommon for people of all caste and religious denominations to hunt for their dream homes even during Pitrapaksha, but these people seal the deal only when this inauspicious period is over. “Currently, I am looking for a flat though I will not finalize the deal now. There would be a huge uproar in the house if I finalize the deal. My parents and wife will not allow me to enter the house,” Sajal Kalra, a pharmaceutical industry professional, says.
Realty players say that after a long lull in the market, things will improve during the festive session starting with Navaratras. While there is no dearth of possible buyers in the market, people expect the prices to go down. Sanjay Khanna, director of Kailash Nath Projects Pvt Ltd, says: “While it is true that the cost of flats have gone up over the years, buyers must not forget that the cost of construction has also been steadily increasing and developers need to factor this in while pricing their products. Land is a major component pushing up prices, followed by labour cost, and then iron, steel, and cement-none of which will come down in the foreseeable future.”
However, the cost of the product is not going to deter the genuine buyer, who is likely to return to the market as soon as the conditions are favourable. “I am sure end users cannot wait for very long to buy their flats. There are enough buyers in the market who are desperately keen to have a roof over their head despite the high cost of flats,” Sameer Jasuja of PropEquity says.
There is another view: prospective buyers are not firming up their deals due to the unprofessional conduct of a few realty firms. “Many firms do not hand over flats to their buyers and harass them on various pretexts, which puts off many more genuine buyers from the market,” D K Mandal, president of ILD Developers, says. In the light of this fact, realty firms too have to pull up their socks and keep their words.
Realty firms should seriously address the issues raised by customers in their complaints, as the National Consumer Helpline is getting a barrage of calls from harassed customers of flats and plots. The complaints are wide ranging and clearly indicate that all is not well with realty firms. They seem to look the other way as soon as their customers face some trouble. On an average, the National Consumer Helpline gets close to 75 complaints against the high-handed attitude of realty firms, daily.
The complaints are of various types: construction not completed within promised time, sale of disputed land or property, demand for extra money for various amenities, possession of flat withheld even after payment, promised area not given, not refunding money or cheque bounced, low-quality building material used, not giving the promised (booked plot or flat), builder stops work in between and asks for money for completion, taking deposit for booking and then cancelling the booking over various pretexts, etc.
On an aggregate, the demand in India’s six main markets has declined by around 40% in the past one year.
- Realty companies avoid north Indians during Pitrapaksh; however, they are in talks with other communities, as well as non-Hindus, during this time and canvass their projects and products.
- While most people of this part of the country do not talk about buying flats during this period, others are not that fastidious.
Indirapuram is one of the fastest developing metropolitan areas of Ghaziabad that is offering modern lifestyle residential projects at competitive rates and has good connectivity with adjoining places in the NCR.
In terms of quality infrastructure and availability of affordable- and luxurious-housing segments, Indirapuram has everything that makes for a good real estate destination. Good connectivity is one of the big boasts of the area with the Metro connectivity extended from Noida City Centre and Vaishali to CISF Camp; local authorities also proposed to widen NH-24 along with the underpass heading to Noida.
Vijay Kumar Jindal, CMD of SVP Group, says: “Improved connectivity always attracts buyers and end users; as for the working professionals who travel on a daily basis, fast connectivity is a prime criterion in selecting a location for their residence. For daily commuters, Indirapuram is the best location because just after NH-24, one can enter Noida and move on to Greater Noida easily. Also, a few minutes of drive will reach you to Delhi and Faridabad. Well established today, Indirapuram provides wide access points that have been increasing demand of residential and commercial units here. Currently, there is very little inventory in the 1-, 2-, and 3 BHK apartment format, as these are very popular among the modern nuclear families, and have all been snapped up. Shortage and demand ratio can be understood by the rise in rental values in the area, by nearly 30-40%, with the rates hovering between Rs 3,500 per sq feet and Rs 5,500 per sq ft.”
The place has a lot of malls and marketplaces: Shipra Sun City is a popular weekend hub for the residents in the area. Realty experts says that the different pockets of residential sectors like Ahinsa Khand, Nyay Khand, Vaibhav Khand, Niti Khand, etc, have bright prospects in the short term as well as the long term.
Indirapuram is also awash with clinics, malls, shopping markets, etc. However, the nearest multidisciplinary hospital is Fortis in Sector 62, Noida. “People can stay here and move out to newer locations when their property gives them good return,” Anoop Garg, director of Uninav Developers, said.
With rates going up commensurate with the rise in demand, the properties of Indirapuram have opened up a new investment option for residents as well as people from all over the NCR.
The realty market here is far from saturation and has strong potential for new projects. The demand for residential apartments is very high in the area and supply has been adequate, thus far. But the scene is changing and the supply is getting exhausted faster now, with a good chance of prices shooting up.
Many projects are in various stages of completion here, affording a good opportunity to people interested in investment or for end use. The GDA has announced a plan for a sewage-treatment plant and underground cabling, which will make Indirapuram cleaner.
Some of the luxurious projects here are SVP’s Gulmohur Residency, Antriksh Group’s Antriksh Greens, Assotech Realty’s Kabana, Amrapali’s Amrapali Village, Gaursons’ Gaur Green Vista, Shipra Group’ Shipra Sun City, Supertech’ Supertech Icon, ABA Corp’s Orange County, etc.
Indirapuram is one of the best places to invest in residential and commercial segments, as the place assures of good returns. Buyers have a lot of options here with several developers coming up with new projects all the time.
Indirapuram has more than 135 projects with 40, 000 flats, out of which 90 projects have been completed and around 45 more are under construction; the occupancy rate of completed projects is estimated at 60%.
Some of the prominent developers operating in the area are Antriksh, Gardenia, Vasundhara Group, Gaursons, Gulshan Homz, Shipra, Mahagun, Amrapali, Ashiana, Supertech, Parsvnath, Express Builders, Krishna Apra, Jaipurias, Assotech, Agarwal Associates, SVP Group, among others.
Manoj Gaur, MD of Gaursons India Ltd, says: “For people looking for a handsome appreciation in property prices, Indirapuram is the place to be. The place is fully inhabited and is a decent choice for people looking to live here. Being close to Noida, which is a major industrial hub, the housing segment here is attracting a wide band of professionals.”
Gaurav Gupta, director of SG Estates, says: “As the place is populated, well connected, and caters to the daily needs of the people living here, it has seen good appreciation in property prices. The appreciation here is better than Noida’s area like Sectors 62, 52 onwards, 60 onwards, and 100 onwards. Noida still bear a deserted look at night. This does not mean that Noida sectors are not livable but Indirapuram has the upper hand when it comes to the choice of buyers, who want to shift to their new homes immediately. The area is also witnessing an influx of people whose offices are in Noida. As prices in livable sectors of Noida are on the higher side, people are investing in Indirapuram.”
Demand for Retail and Commercial Space:
Indirapuram has always been in demand in terms of retail and commercial space due well-established residential apartments and superb connectivity with Delhi.
Indirapuram will turn into prime area for corporate office suites, recreational outlets, and shopping complexes in the near future with a number of high-end facilities in place, and under construction. The widely talked about Habitat Centre is coming up in the heart of Indirapuram.
Indirapuram is well connected through road and railways and, further, is well supported by other infrastructure facilities. A 100 sq ft area in Indirapuram can cost around Rs 18-25 lakh because of high demand. Coupled with residential and commercial complexes, Indirapuram offers all basic facilities like schools, banks, market areas, shopping zones, entertainment and leisure zones, green areas, etc. Developers are constructing housing societies, recreational space and using modern architects and designs to create world-class townships here. The trend of modern high-tech lifestyle has highly influenced this place and people now seek studio apartments, small flats, apartments, villas, and independent floors.
Today, various projects under construction are offering trendy and modern apartments, in the affordable range too. Designed by modern architects, developers are constructing stylish apartments with the aid of advanced and cost effective technology. Installed with multiple security layers, airy and quality construction, wooden and marble flooring, contemporary interior concepts and outdoor designing, modern fittings, and advanced colours to redefine one’s lifestyle, Indirapuram is showing the way to modern urbanization in the NCR.
Realty experts says that the different pockets of residential sectors like Ahinsa Khand, Nyay Khand, Vaibhav Khand, Niti Khand, etc, have bright prospects in the short term as well as the long term.