PUNE: Affordable housing projects on offer today provide enhanced lifestyle solutions for better living standards.
The time might be just right to make a house purchase in Pune. According to the latest data from Magicbricks, affordable properties have now become more affordable. In simpler terms, there has been a fall in property prices which makes investment in one easier. If worried about the decline in prices then remember that affordable housing is one of the visions of the government of India and will not drop out of limelight anytime soon.
Today, affordable housing projects on offer provide enhanced lifestyle solutions for better living standards. The idea is to improve the living conditions of the poor and underprivileged and to provide their families respectable accommodation and safer environment. Affordable homes have captured the interest of developers, since the government of India launched an ambitious plan of providing housing for all by 2020 under the Prime Minister Awas Yojana. As per government statistics, the number of people living in slums is projected to rise to 7.75 percent of the total population almost double the population of Britain.
Why buy now?
Lower property prices can be the biggest reason for you to invest now. Though at present, higher budget properties are performing well, one can be smart and invest in an affordable property. As concluded before, lower budget segments will remain in the spotlight. If not for end-use, one can always invest in one to earn returns on investment.
In this case, it is important to choose your locality wisely. Opt for areas which have good rental demand and therefore areas near IT/ITeS hubs and other office complexes pose as a safe bet. Pune has always been a city of migrating workforce. The need for small format houses will remain for single professionals who are working. Buying a house near educational institutions and universities will also be fruitful as outstation students look for small sized properties for residence.
Price change noted: The overall price trend noted in Pune for budget segments Rs 3,000-Rs 4,000 and Rs 4,000-Rs 5,000 per sq ft has declined by one percent respectively. East Pune localities saw the maximum fall in values.
Where can you find affordable houses?
North, East and South zones of Pune offer lower budget homes. The percentage of their availability has been mentioned in the table below while the price change has been mentioned in brackets. While some localities in these regions saw rise; others witnessed a drop in property values.
Wagholi deserves a mention
These budgets have not seen a positive change in the Jul-Sep 2016 quarter. Their availability has also been comparatively slim in reference to higher budget homes. Magicbricks data in formed that the Rs 4,000-Rs 5,000 per sq ft category can be found in Wagholi.
If one is looking to invest in a property for end-use and the budget is limited, Wagholi is the area one can opt for. Arvind Jain, managing director, Pride Group, says, “In Pune, one of the prime examples of spill-over demand and infrastructure working together to successfully raise the real estate profiling of locations is Wagholi. The area is seeing spill-over from Kharadi, an IT hub of the city.” Kharadi has almost reached saturation in terms of real estate development and offer property within the range of Rs 5,800-Rs 6000 per sq ft, Wagholi comes as an affordable bet for those with limited budget.
If choosing between ready-to-move-in and under-construction properties, then one can find both these types in Wagholi. Properties in the former section saw a fall in prices by 2.5 percent while the under-construction section saw a fall of 2.6 percent. While choosing, keep the developer in mind. Look at the amenities being offered and whether it is of use to you.
Khandala-Loni road links the locality to the other parts of Pune. Wagholi is witnessing infrastructure development, for example, the expansion of Nagar Road to six lanes. Upcoming Ring Road will also boost the connectivity of the locality. The road connecting Wagholi to Eon IT Park, which goes through the Nagar Road, is under construction. Another flyover is proposed on the road connecting Wagholi to Shikrapur in the opposite direction. However, water and electricity issues are still a problem area.
Under Construction Flat Booking Finds Tax Deduction Under Time Constraints
If a buyer makes a transaction to book an under-construction flat and if he acquires it within the three-year period of the sale of his old house, then he is entitled to a tax deduction, says a ruling from the Mumbai bench of the Income-tax Appellate Tribunal (ITAT). If an apartment is booked in an under construction project than it must be viewed as a method of constructing residential tenements, says the December 18 judgment.
That means if the buyer uses the entire gain from the transaction to buy another house within two years or construct another house within three years. The two- and three-year period applies even if the buyer bought another house a year before selling the first one. But the property should have been bought in the name of the seller.
It is mandatory that within a period of two years after or one year before the date of transfer of old house, the taxpayer should construct a residential house or acquire another residential house within a period of three years from the date of transfer of the old house. The date of receipt of compensation will determine the period of acquisition or construction in a case of compulsory acquisition.
This exemption is effective and can only be claimed in respect of one residential house property purchased/constructed in India. In the case of multiple house purchases or constructions, the exemption under section 54 will be available in respect of one house only. Any purchases made outside the country does not fall under any kind of exemption. Section 54 gives relaxation in such cases by providing relief to the taxpayer who sells his residential house and acquires another residential house from the gained capital.
After the sale of an asset, the difference between the buying price and the selling price is a capital gain or a capital loss. These are further classified as long-term or short-term. If a property is held for 24 months or less, with effective from 2017-18, then that asset is treated as Short Term Capital Asset. Then an investor can make
treated as Long Term Capital Asset. Then only a Long Term Capital Gain (LTCG) or Long Term Capital Loss (LTCL) can be made on that investment.
ITAT agreed that booking of a new flat in an under-construction apartment should be considered as a case of “construction” and not “purchase”, hence following the earlier decisions of the Bombay high court and the tribunal itself. Further ITAT allowed the fact that the construction can began prior to the date of sale of the old asset. Same was stated in the earlier judicial decisions of the Karnataka high court and Ahmedabad ITAT, that the date of commencement is not relevant but it is the completion of construction that comes in relevance to section 54.
HDFC and Quikr Make A Deal
According to a deal between HDFC and Quikr, a stake of more than 3 percent will be given to the mortgage giant in return to its transfer of offline and online real estate brokerage business to the classified ads platform.
After acquiring Commonfloor in 2016 Quikr already has a major presence in online real estate broking.
“Most of the searches for real estate are moving online. Quikr has a much bigger presence online. Through this deal, we are partnering Quikr in the broking business,” said HDFC MD Renu Sud Karnad. According to her, this deal will strengthen Quirks position with offline support.
The deal suggests that HDFC will transfer to Quikr its entire shareholding in HDFC Realty, a real estate brokerage platform, and HDFC Developers, which runs the HDFC RED online platform.
Karnad added that the deal expects Quikr to generate home loan leads for HDFC. The transaction consists of a co-branded alliance between both parties and the HDFC brand will continue to be used online for a year.
The e-real estate classifieds platform HDFC RED has around 7,000 project listings and generates traffic of over 80,000 unique visitors per month. HDFC Realty has a 300-member, in-house sales team, and 7,000-strong nationwide broker network. Avendus Capital was the exclusive financial adviser to Quikr while Kotak Investment Banking acted as the exclusive financial adviser to HDFC on this.
30 million monthly users make Quikr India’s largest classifieds platform. It runs multiple vertical businesses across real estate, automobiles, jobs, services, and goods. The Quikr Home, its real estate vertical generates 3.5 million monthly unique visitors.
Both companies intend to work closely and conduct analytics and identify potential homebuyers, and therefore home loan customers, early in their home-buying journey. Quikr founder and CEO Pranay Chulet said, “We see great synergies between Quikr and HDFC as we start working together to bring a seamless online-to-offline platform to developers and consumers.”
Retaining The Sustainability: GRIHA Launches Star Rating For Urban Homes
Green Rating for Integrated Habitat Assessment (GRIHA), is the National Rating System of India, a Sanskrit word meaning – ‘Abode’. Human architecture has always consumed resources in the form of energy, water and material from the environment. From their construction to operation, these habitats absorb the resources throughout their life cycles, emitting wastes in the end. This emission could be direct in the form of municipal wastes or indirect emission into the atmosphere, such as from electricity generation. Hence GRIHA was formed to reduce an architecture’s resource consumption, waste production and overall environment impact up to certain national acceptable limits.
In attempt to quantify all these aspects, like energy consumption, waste generation etc. GRIHA tries to manage, control and bring down the respective to the best possible limit. Being a rating tool, it helps people to assess the performance of their respective projects against the national benchmarks.
Hence it becomes an evaluation of the environmental performance of an architecture on a holistic level. Covering its entire life cycle, this evaluation provides a specific standard for a ‘green building’. This rating system aims to strike a balance between established institutions and emerging concepts, on a national as well as the international level.
The process starts with an online submission of documents according to the criteria. Then a team of professionals and experts from GRIHA Secretariat takes a site visit for the evaluation of the building. There are four different sections categorized by 34 criteria in GRIHA rating system. Some of them are site selection and site planning, conservation and efficient utilization of resources, building operation and maintenance, and innovation.
Sanjay Seth, CEO, Green Rating for Integrated Habitat Assessment (GRIHA) Council says, “A rating between one and five stars is being provided, helping the costumers to know about the sustainability of the houses”.
According to the Union Minister, Hardeep Singh Puri, the climate resilient and sustainable buildings are the need of the hour. As the government is aiming to construct around 1.2 crore houses for the urban poor under the affordable housing scheme.
In one of his keynote addresses, Andreas Baum, Ambassador of Switzerland to India and Bhutan said that the Indo Swiss collaboration is operating with the Indian Bureau of Energy Efficiency in the development of guidelines for energy efficient housing.
“At present India is witnessing a rapid urbanisation, if each building becomes greener than the last one, then we have a huge opportunity and hope for our country. We need to look beyond the conventional methods of building, in order to provide our citizens with a good quality of life. Hence, GRIHA gains important in meeting our national goals with respect to a sustainable society”, says Dr Ajay Mathur, director general, TERI & president, GRIHA Council.
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