A short history of real estate
The property market in India is currently going through a tough time. The economic slowdown has affected both developers and buyers alike, but there are some signs of recovery “ albeit small. What you need to know about buying a dream home in the coming months Real estate began its modern journey in India after Independence with government initiatives like Housing & Development Board (HDB) and later Panchayat Raj Institutions (PRIs).
This was followed by an era of boom in residential realty due to various liberalization measures taken by then finance minister Manmohan Singh. After serving as finance minister under the government of P V Narasimha Rao for two terms, he implemented these policies.
Why purchase property?
Though realty is still recovering from its sluggish performance post-demonetization, sales have been steadily increasing across affordable and high-end segments. Buyers are coming back to reality now as prices are lower than a year ago and interest rates have fallen to decade lows. Shravan believes it's an opportune time to invest in property.
What are the most attractive cities?
Bengaluru, Mumbai, Hyderabad, Pune, New Delhi NCR, Chennai, and Kolkata are the top 10 Indian cities where real estate is expected to boom during Diwali 2015. With no surprise, these cities have consistently attracted major investments and had an impressive performance over recent years.
In fact, according to Knight Frank India's report titled ˜The Wealth Report 2015', Bangalore has emerged as one of India's most attractive cities for residential property investment. In terms of price appreciation and capital appreciation, it was ranked third after Gurgaon and Noida.
Factors affecting real estate prices?
The slowdown in India's economy has affected all sectors, including real estate. The recovery of economic growth and an increase in job opportunities should, however, boost real estate. Also, buyers will play a vital role in determining prices as they try to get a fair deal from developers by negotiating prices down.
This should have developers offering better deals and incentivizing people to buy homes during festivals such as Diwali and Dussehra.
How does income tax affect my purchase decision?
With many Indian cities facing a real estate slowdown, it makes sense to ask yourself why you're buying a home. It's not just about getting a roof over your head but also saving on taxes.
Here are some questions you must ask yourself before buying a house in Mumbai, Delhi, or Bangalore and how income tax will affect your purchase decision. Is I-T exemption an option? Is the home loan interest deductible? When will I pay stamp duty in Mumbai? How does the registration fee benefit me?
