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How Is Technology Shaping The Future Of India’s Real Estate Consultancy?



real estate consultancy

Technology is playing a groundbreaking role in different industries across the world; it is only innate that the property brokerage industry will also follow.

India’s real estate market was on of the first marketplace to justify professional brokerage services. It identified the need to connect the renters and homebuyers with the concerned suppliers.

Today the real estate brokerage industry stands on yet another threshold, leveraging technology as a competitive advantage. Technology is indeed becoming an important separator for real estate brokerage across market segments and especially in the residential market.

Data Analytics

Another tool in the not so distant future is the improved use of predictive analytics. This has the potential to change the face of India’s property consulting industry.

Much like the e-commerce websites that offer a personalized wish list of the items people have shown their interest in, algorithms will be able to define the customers with the kind of property they prefer and would be interested in buying.

As advancing technology and automation redefine the buyer and broker interaction on real estate, it becomes indispensable to enhance the buyers overall property purchase journey and create a feel-good vibe about the numerous online options.

In the present-day retail world, experiential marketing is already an important factor of attracting customers. Real estate consultants now face increasing pressure on finding tech-driven ways to enhance their customer experience.

Gaining the trust back

The RERA Act has finally started to bridge the chronic gap between customers and developers or brokers.

The constant delays in home delivery, misleading promises, non-existent regulatory compliance of projects and deceptive promotions have been the main cause of developing this mistrust. The trust deficit has come from developers as well with their thick barriers that they have erected between themselves and the customers. Developer reputation and accountability has serious been affected by this barrier.

Consultants can take this opportunity and bridge this gap through technology. The real estate consultants through various technology-enabled channels can bring customers closer to developers. This will permit customers to ask questions, clear their doubts in real time and establish a rapport that has really been missing from the residential property marketplace.

The virtual reality

Virtual tours have been around for some years now. With this tech-enabled medium the brokers assist prospective buyers, visitors and renters to visually go through the properties.

The Indian real estate market still remains a touch and feel place where personal site visits are a must.

Another entirely new and convenient way for customers within and outside India is the regular feature from property developers called online home festivals. This option lets people shortlist options and at the same time benefit from different offers, discounts and on the spot deals.

With the deepening penetration of smartphones even the rural areas are not left out of the virtual space and market that it has created. With people becoming more tech-savvy, the list of phony properties that used to clutter the property searches have considerably gone down. Only verified and curated options are seen with a wealth of information. The RERA Act has also made a huge difference to this scenario.

Crowd funding in real estate

Crowd funding can be used innovatively to add value to developers and customers. For example crowd funding can be used to raise money online to finance a developer’s project from several donors. With the help of an escrow account the buyer’s stuck project can get completed and money can be accounted for. It could sell out some of the extra units and share the profits with such investors once the project is completed and a cooperative housing society is built.

Technology not just for lead generation

The Internet has opened unprecedented doors. What used to take a lot of the footwork out of finding property options, now only needs few hours. 70% of modern real estate consultancies’ prospects are today acquired through digitally obtained leads.

As big data and analytics become more integrated with consultants they will find innovative ways such as finding instant matches to customer’s requirement or tracking sales figures information or getting date on projects’ construction progress and regulatory compliances.

It is no news that a lot of work will be achieved through smartphones and brokers will need to become tech-savvy to handle millennial clients and expect flawless and quick information exchange.

Technological advances with numerous apps will revolutionize almost all aspects of the real estate business in the future. They not only speed up the process but also make it more engaging and exciting for customers, brokers and developers alike.

Also Read: 5 Real Estate Tech Startup In India You Can’t Ignore

Ahmedabad Real Estate News

Under Construction Flat Booking Finds Tax Deduction Under Time Constraints



Tax Deduction

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.

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India Real Estate News

HDFC and Quikr Make A Deal



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.”

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India Real Estate News

Retaining The Sustainability: GRIHA Launches Star Rating For Urban Homes



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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