Real Estate Investment

Year 2016 has been an interesting year posing ups and down for the real estate segment. While the under-construction inventory has been surged up, the sector has witnessed a growth in the demand for constructed properties. As a post-demonetization effect, the sales in the sector went down considerably but significant announcements like Benami Transaction Act, amendments to REIT (Real Estate Investment Trust) guidelines in Budget 2016-17 etc. paved a way for the better transparency in the sector, thus, building the investors and buyers interest. Now the sector is heading as more regulated and less cash dominated eliminating the unaccounted cash flows to an extent.

With the amendments to REIT guidelines, dividend distribution tax got exempted which was earlier required to be paid by SPV’s (Special-Purpose Vehicle) to REIT bringing a big relief. With the introduction of Goods and Services Tax (GST), strong effort were laid incentivising affordable housing by exempting Rs. 50,000 further for the first time home buyers. However, residential segment is still predominated by the ‘branding’ factor where the reputation, past deliveries, approved plans etc. are considered before closing a deal by a buyer. An essential checklist must also be considered including documents like Environment clearance, commencement certificate, project approvals from authorized sources etc shall also be considered.

Coming to NCR, premium projects at Dwarka Expressway, extended Gurgaon, NH-24 and Noida Expressway are quite promising ones. With rapid infrastructure developments and strategic location advantages, project in these areas have become a sought-after choice for home buyers and investors.

Mumbai, Pune, Bangalore, Chennai are other areas where a glance can be given for real estate investment in India.

Why Investing in NCR?
First and the foremost reason – the growth. The national capital regions of India are growing tremendously with respect to IT, MNCs and business hubs. And thus, in time to come, residential needs are expected to grow.

Secondly – The NCRs are rising as top realty destinations for they are acquiring residential and commercial projects from the most reputed builders and developers. Betting upon the winning horse will always give you benefit, soon or later.

Third – It has got eyes of foreign investors as well as US President Donald Trump. It was not late when Trump had won the election and had showed his interest in investing in India where Gurgaon was one his region of interest for real estate investment in India.

9 Steps to Smooth Real Estate Investment Journey:
Not merely the right place but the right steps are equally important to gain profit in real estate market. Following are 9 steps to smooth real estate investment journey.

  1. Plan – Get ready with your plan and be determined for its execution on right time and right place.
  2. Future – Plan according to the future needs and demand.
  3. Profit- Target the profit to be achieved in future and NOT tomorrow.
  4. Taxes & Policies – Do not ignore the taxes and policies meant for the houses and the properties.
  5. Research – Carry out your own research on real estate, taxes, and policies in detail.
  6. Developers – Go with the reputed and promising developers only.
  7. False Schemes – Do not get trapped with fascinating and alluring schemes and offers.
  8. Updates – Keep your eyes and ears open for the latest news and updates in real estate and Indian economy.
  9. Learn – Be open to all forms of advice and learn as much as possible about the sector.

Nevertheless, while investing in Indian real estate keep in mind that the first half of year 2017 can be impacted with the consequences of demonetization, the later half is expected to resume the business with acceleration.