Real estate prices show some signs of recovery

Real estate prices show some signs of recovery

NEW DELHI: Real estate prices have shown some improvement in majority of cities such as Mumbai where index of prices went up by 3.7%, Gurgaon by 6.7%, Chandigarh (6.2%), Kanpur 8.1% and Bhubaneshwar by 11.7%, among others in the January-March 2017 quarter. This was revealed in prices of residential units released on Monday by the National Housing Bank (NHB). According to NHB, out of 50 cities which are monitored, 27 witnessed improvement in prices in the quarter ending March 2017 as against that of December 2016.

Prices remained flat in cities such as Noida, Greater Noida, Chennai, Bengaluru, and Hyderabad where the movement in the Residex is around 1%-2% in the January-March quarter over the previous quarter. But 19 out of 50 cities witnessed fall in index of property prices. In Delhi, it fell by 4.3%, Gandhinagar by 12%, Surat (8.9%), Ludhiana (7.8%) and Kolkata by 7.2% “I will be happy if land prices fall further. We still have the situation where land prices in Vijayawa Vijayawada is more than Washington and New York. Unfortunately , farmers are not benefitted by this price rise as the middleman had already bought the land from farmers and now quoting unreasonably high prices,“ said Venkaiah Naidu, minister for housing and urban affairs, who released the index, said.

In the under construction segment, prices went up in 24 cities out of 47 cities which were monitored in the quarter ended March 2017 over that of December 2016. The maximum increase was observed in 7 ctiies like Jaipur (8.7%), Chennai (6.7%), Lucknow (5.7%), Guwahati (5.2%), Howrah (4.4%), Hyderabad (4.4%) and Bidhan Nagar (4.1%). 14 cities have shown decline in prices over the previous quarter with maximum fall observed in Patna (16.2%), Nashik (6.3%). Delhi (4.3%) Faridabad (3.9%) and Chandigarh(3.4%).

The index for prices of under construction project in Noida, Greater Noida, Bengaluru and Ahmedabad remained flat. NHB Residex plans to bring out Land Price Indices, Building Material Price Indices and Housing Rental Index to enable consumers to have comprehensive view on housing, said Sriram Kalyanaraman, MD & CEO, NHB. He said they are planning to include 100 cities from 50 cities now.

Must-know rules for NRIs for real estate investment in India

Must-know rules for NRIs for real estate investment in India

One of the most important considerations for an NRI investing in Indian real estate is understanding the financial landscape.

Thanks to new real estate rules, buying a property for a non-resident Indians (NRI) is easier than ever before. Anyone with an Indian passport can invest in Indian real estate, given that the property is not an agricultural land, plantation property or a farmhouse.

One of the most important considerations for an NRI investing in Indian real estate is understanding of the financial landscape. If you are an NRI looking to invest in a property in India, here are few things you need to keep in mind before you start looking out for properties:

Regulatory Act

If you have an Indian passport, you do not require any prior permission to make a property investment in India. The Reserve Bank of India has made the rules very simple to attract more foreign investment. Real estate transactions are governed by the rules under the Foreign Exchange Management Act (FEMA).

Types of properties to invest in

There is no restriction on the number of properties than an NRI can invest in. An NRI, as well as a Person of Indian Origin (PIO), can purchase as many residential as well as commercial properties in India as they want. However, there is a restriction on foreign investment when it comes to agricultural land, plantation property or a farmhouse. Such properties are allowed only in case they are inherited or gifted to the NRI in question

Financial transactions and funding

For any property investment in India, all the transactions should be done in Indian currency through Indian banks. One of the mandates is to have an NRI account in an authorised Indian bank.

An NRI can easily get funding for the purchase if his paperwork is clean. There are several NRI home loan schemes available under different financial institutions in India. If you are getting your property funded make sure that you have a minimum of 20% of the value of the property to invest from your own sources. You can take funding for a maximum of 80% of the value of the property.

All your transaction should be carried through Indian banking channels, so make sure to use your NRO/NRE account for all your inward remittances. You can also issue post-dated cheques or ECS from your NRE, NRO or FCNR (Foreign Currency Non Resident) account.

Before you approach the bank for funding, check that all your paperwork is clean and verified by a lawyer. Take a no-dues certificate from the seller if you are buying a property and if it’s inherited or jointly held, work to get the title cleared. Also, ensure that there are no pending bills or dues with any authorities.

Power of attorney

If you are buying an under-construction property, you will have to give power of attorney to your builder or a trusted associate. Take help from your lawyer to appropriately word the document so that there is no chance of forgery and your investment is secured while the property is being developed.

Tax benefits

As an NRI you can enjoy most of the tax benefits that an Indian resident is entitled to on purchase of property. You can claim a deduction of Rs. 1 Lakh under section 80 C on the Income Tax Act, 1961. If you sell the property within three years of purchase, it is considered as short-term capital gain, and the earnings through the property are taxable. If you sell the property after three years, you have the option of reducing the long-term capital gains tax by investing in another property.

The Confederation of Real Estate Developers Association of India (CREDAI) regularly organises exhibitions for NRIs where it helps them scan different investment options and offer spot loans from top banks. Easy investment options and reduction in down payment value are also offered. Therefore, it is important that you check all the offers from CREDAI before you invest in real estate in India.

Implementation of real estate regulation law delayed in Haryana

Implementation of real estate regulation law delayed in Haryana

Homebuyers in Haryana may have to wait more for the Real Estate (Regulation and Development) Act to come into force. According to senior officials of the state’s town and country planning department, the notification of RERA Act has been delayed by a month.

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Realty queries: What are the things to look at before buying a home under affordable housing?

Realty queries: What are the things to look at before buying a home under affordable housing?

A S Sivaramakrishnan Head, Residential Services ­ India, CBRE South Asia answers real estate related queries from our readers.

What is the most sustainable format for affordable housing in India, in terms of utilisation of resources, economies of scale, and customer appeal, which will benefit me the most? My budget is around Rs 25 lakh.
An affordable housing customer seeks Continue reading “Realty queries: What are the things to look at before buying a home under affordable housing?”