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For home buyers waiting for a great deal, now’s the time. For the first time in seven years, the real estate industry is witnessing a price correction with a substantial drop in actual purchase price courtesy discounts from developers.
“After refusing to budge for years, developers in Kolkata have finally blinked. The weighted average price that the developers used to quote would remain constant, even in adverse conditions. But around 50% developers used to offer discounts on the effective price that is arrived on negotiation across the table. Now, more than 80% developers are offering discounts. This, with the constant price despite the 4.5% inflation and actual rise in construction costs, takes the effective discount to 12% and makes homes in Kolkata the most affordable in years,” said Samantak Das, chief economist and national director (research) at Knight Frank, an international residential and commercial property consultant.

Tollygunge, where prices range between Rs 5,500 and Rs 13,500 per sqft, depending on the development, has witnessed the biggest price dip of 17%. This is followed by 12% correction in Rajarhat-New Town where prices range between Rs 4,000 and Rs 6,000. Prices in Ballygunge, Park Street and Rawdon Street have remained static while Salt Lake, Behala, BT Road, Jessore Road, Madhyamgram and Narendrapur have witnessed a lower price correction in the 2%-4% range.


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New home sales in the country’s top eight property markets increased 5% on year in the quarter ended September, powered by a 24% surge in affordable housing uptake in a boost to the government’s ‘Housing for All by 2022’ scheme, latest data shows.

Home sales in key markets including Mumbai, National Capital Region, Bangalore, Pune, Chennai and Hyderabad totalled 64,781 units during the quarter, data from Liases Foras Real Estate Rating & Research shows.

This is marginally lower than 64,881 units sold in the previous quarter.

“We have seen a healthy growth in residential sales during September quarter, led by affordable housing,” said Keki Mistry, CEO at HDFC, the country’s largest mortgage lender. “It has a lot to do with the government’s focus on this segment and the fact that it has become more affordable by virtue of growth in income levels and no rise in property price. This growth should continue hereon,” he said.

This is the second straight quarter when home sales increased, coming after 5% decline in January-March quarter and 15% drop in October-December, marked by the government’s demonetisation move.

Mumbai Metropolitan Region topped the list in September quarter with 19% increase in sales year on year.

Property markets in National Capital Region, Hyderabad and Pune followed the financial capital with 15%, 13% and 10% growth, respectively. However, Chennai and Bangalore witnessed a steep decline of 23% and 21%, respectively.

Sales in affordable segment with prices less than Rs 25 lakh increased by 11% on a sequential basis to 12,136 units.

Sales in the cost bracket of Rs 50 lakh to Rs 1 crore increased 7% from a year ago and Rs 1 crore to Rs 2 crore increased 9%. Sales in ultra-luxury segment with prices above Rs 2 crore, however, declined by 6%, the data showed.

“Sales in affordable housing segment is going up as we are seeing more supply from developers who have realized that this is where the demand is as well as financial and fiscal benefits through infrastructure status to affordable housing project and benefit from PMAY (Pradhan Mantri Awas Yojana, the Housing for All by 2022 scheme) subsidy,” said Anuj Puri, chairman at Anarock Property Consultants.

Puri expects the affordable housing segment to continue driving the sales momentum in key markets.

According to realty developers, the sentiment has started to improve with recently implemented Real Estate (Regulation & Development) Act, 2016 and setting up state-wise authorities under the same.

“Homebuyers’ concern over delays in delivery has been waning with RERA being in place,” said Subodh Runwal, director at Mumbai-based real estate developer Runwal Group. “The confidence is showing in their action as enquiries and sales have started to improve since last three-four months,” he said.

Runwal Group sold 400 units at their Mulund and Kanjurmarg during the September quarter.

The top eight cities cumulatively sold highest number of apartments in cost range of Rs 25-50 lakh, with 36% of total sales, followed by cost range of Rs 50 lakh to Rs 1 crore at 29% of total sales. The contribution of affordable segment to the overall sales in these eight cities stood at 19% with MMR contributing the highest with 28%, followed by Ahmedabad with 24% of total sales.

During the quarter, the weighted average price level in these eight markets increased 2% from a year ago. Prices in Ahmedabad and Bengaluru rose the highest by 2%, while Kolkata and Pune witnessed a decline in price by 2%. Prices in Mumbai and Chennai remained stagnant.

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More than 50% of Indians are interested in buying an apartment as compared to villas or builder floor apartments, and 2BHK housing units are the most preferred choice for more than 40% of home buyers in Delhi, Bangalore, Chennai and Kolkata, said a research report by today., part of Elara Technologies Pvt Ltd, which also owns and, today unveiled the findings of its research on top investment localities and preferred property type by Indian home buyers. Based on insights drawn from the traffic witnessed on, this research helps to understand the buying trends of Indian home buyers across top 5 cities in India – Mumbai, Delhi-NCR, Bengaluru, Chennai and Kolkata.

While looking for a property, a buyer would normally prefer a perfect mix of a great social and civic infrastructure along with proximity to key locations. This research aims to assist home buyers to identify top localities for property investment in the five regions and presents preferred property type and configuration by home buyers in those regions.

Key highlights from the research:

Top localities for investment

# Mumbai’s property market is legendary and the hottest investment destinations in the city today include Thane West, Dombivli East, Mira Road East, Andheri West and Panvel.

# Delhi and the National Capital Region (NCR) region is bustling with a range of infrastructure development and top localities to invest in the region include Rohini, Uttam Nagar, Dwarka, Sector 16/Palam Vihar and Noida Extension.

# Bengaluru, popularly known as the ‘Silicon Valley of India’, is one of the upcoming residential markets in India and top 5 investment localities in the city are Hormavu, K R Puram, Whitefield, Electronic City and J P Nagar.

# On the back of infrastructural developments, Chennai has been transforming itself into a real estate hotspot. The top localities of the city preferred for investment are Perambur, Kolathur, Ambattur, Madipakkam and Chromepet.

# The top localities in Kolkata, the capital city of West Bengal are South Dum Dum, Dum Dum, Rajarhat, New Town and Garia.

Type of Houses

# More than 50% of Indians are interested in buying an apartment as compared to villas or builder floor apartments.

# Mumbai is fast emerging as the preferred destination for home buyers as 96% of home buyers choose apartments over villas and builder floor apartments.

# Surprisingly, demand for apartments in Delhi-NCR was recorded lowest at 54%.

# The preference for builder floor apartments is 37% in Delhi and extremely low in other cities (2% in Mumbai, 1% in Bangalore, 3% in Chennai and no preference at all in Kolkata).

The overwhelming preference for apartments shows the growing acceptance of this property type amongst the urban population who prefer a standard lifestyle with various amenities at a reasonable cost.

Preferred Configuration

# 2BHK housing units are the most preferred choice for more than 40% of home buyers in Delhi, Bangalore, Chennai and Kolkata. In Mumbai, 51% home buyers prefer 1 BHK owing to escalating property rates in the city.

# 3BHK is the next most preferred configuration in Delhi-NCR, Bangalore, Chennai and Kolkata (on an average 20% home buyers prefer 3BHK in these cities) as most of the buyers look for a balance between spacious homes, amenities, luxury and affordability. However, only 6% home buyers prefer 3BHK in Mumbai, stating affordability as the major concern in the region.



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Planning to buy a property in Kolkata. The good news is that property prices are comparatively lower than in the rest of the metro cities of India. The ‘city of joy’ is a good ground for making a purchase without making much dent in the markets. Magicbricks brings some key pointers which will help you in making a correct investment decision.

The year started with a marginal rise (0.56%) in property prices. The top localities registering highest average price per sq ft are Ballygunje Circular Road (Rs 14,752); followed by Keyatala Road (Rs 10,263) and Ultadanga (Rs 7,829)

Capsuling Kolkata real estate market

The year 2016 ended with a marginal 0.2 per cent increment. In the previous quarter (Jul-Sep 2016) the recorded gain was 0.57 per cent
East Kolkata should be surveyed as many upcoming projects are present here. Properties in this region start at Rs 2,000 per sq ft and reach Rs 6,000 per sq ft. The region accounts for almost half the city’s residential supply and grew by 0.5% over the previous quarter

North Kolkata caters to the budget segments with prices between Rs 2,000-4,000 per sq ft. Average prices here declined by a significant 3.4 per cent this quarter. Choose this region only if you have a long horizon

West Kolkata is the least significant residential destination of the city. This region provides properties in the range of Rs 3,000-4,000 per sq ft. It climbed by a significant 3.9% over the last quarter. Don’t miss this portion of the city!

South Kolkata, starting from the south of AC Bose Road, provides the widest range of options. Properties here start at Rs 2,000 per sq ft and go upto Rs 8,000 per sq ft. This region grew by just 0.1 per cent in the quarter. It provides the costliest properties of all regions in Kolkata, where properties costlier than Rs 6,000 per sq ft are almost exclusively found here

If you are facing trouble choosing between ready possession and Under Construction (UC) properties, then you should know that the former were 3.8 per cent more expensive than UC properties. The average percentage price difference in the UC versus Ready-to-Move-in (RM) properties remained more or less stagnant over the last quarter..


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The government has cut down tax benefits borrowers enjoyed on properties let out on rent. “In order to address the existing anomaly of interest deduction in respect of let out property vis-a-vis self-occupied property, it is proposed to restrict set off of loss from house property against income under any other head during the current year up to Rs. 2 lakh. The loss not so set off would be allowed to be carried forward for set off against house property income for eight assessment years,” Finance Minister Arun Jaitley said in his Budget 2017-18 speech.

As per current tax laws, for properties rented out, a borrower could deduct the entire interest paid on home loan after adjusting for the rental income. On the other hand, borrowers of self-occupied properties get Rs. 2 lakh deduction on interest repayment on home loan.

However, according to the proposed change, on rented properties, the borrower can only claim deduction of up to Rs. 2 lakh per year after adjusting for the rental income. And the amount above Rs. 2 lakh can be carried forward for eight assessment years. Since the interest component of home loan repaid in initial years is higher, experts say that the borrower may not be able to fully adjust the interest paid as deduction even in subsequent years.
For example, your interest outgo on a second property is Rs. 5 lakh in a particular year. Assume that you are earning a rent of Rs. 1.5 lakh annually from the property. Such buyers, according to the earlier rule, were allowed to adjust the difference of Rs. 3.5 lakh (Rs. 5 lakh interest minus Rs. 1.5 lakh). But from the next financial year, they will be allowed deduction of just Rs. 2 lakh. The remaining amount of Rs. 1.5 lakh (Rs. 3.5 lakh minus Rs. 2 lakh) can be carried forward up to eight financial years and be adjusted later.

Experts say the move will dampen the demand for buying a second property for the purpose of earning rental income. “High net worth individuals used to buy properties on loan and were able to set off the full interest liability against the lettable value of property usually resulting in loss which would substantially bring down tax liability and consequently their borrowing costs. This avenue is now closed and loss above 2 lakh would have to be mandatorily carried forward,” said Sandeep Sehgal, director of tax and regulatory at Ashok Maheshwary & Associates LLP.

The finance minister in Union Budget 2017-18, however, proposed a change that will attract lower tax on gains from property sale. Mr Jaitley proposed that the holding period of a property for qualifying under long-term gains will get reduced to two years, from three years currently.

As per current tax norms, if a property is sold within three years of buying, the profit from the transaction is treated as short-term capital gain and is taxed according to the slab rate applicable to him/her.



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KOLKATA: After Arun Jaitley wooed middle class home buyers with a bonanza in the Union Budget, it is time for Amit Mitra to dangle the carrot. The state government on Friday offered incentives to encourage timely registration of properties instead of delays that run into years and hold up stamp duty and registration collection that amounts to nearly Rs 4,000 crore a year.

Presenting the state budget, finance minister Amit Mitra offered a 20% rebate on registration fee if buyers do so within a year of the project completion. With registration fee at 1% of the property value, the buyer of a property valued at Rs 50 lakh can save 0.2% or Rs 10,000.

Mitra also eased the payment condition for registering the sale agreement. At present, very few buyers get the agreement registered as they had to then pay 7% stamp duty even when construction hadn’t begun yet. Mitra has now proposed registration of the agreement against 2% stamp duty and offered buyers four years to pay the balance 5%. During the four year period, the valuation of property will remain unchanged. If, however, the balance is paid after four years, the 5% will be according to the new valuation. All projects launched after January 1, 2015, can avail of this benefit.

On a flat of Rs 50 lakh, a buyer has to now pay Rs 1 lakh instead of Rs 3.5 lakh at the time of registering the sale agreement. On the Rs 2.5 lakh, a home buyer can earn Rs 17,500 a year through interest in bank deposit or Rs 70,000 before making the payment at the end of the fourth year. Thus a buyer of a Rs 50 lakh property can save up to Rs 80,000, including the saving of Rs 10,000 as rebate on registration fee.

The second proposal is expected to facilitate greater compliance with the Real Estate (Regulation and Development) Act, 2016, that requires registration of the sale agreement to make the document legally tenable.

Mitra has also allowed change of the owner’s name to a family member without having to incur additional expenditure.Welcoming the twin proposals, Credai Bengal president Nandu Belani said they would encourage home buyers to complete the formalities early instead of waiting for years to delay payment of stamp duty and registration fee.
 Credai had proposed the buyers be charged 1% of stamp duty while registering their agreement and five years to pay the rest. Credai had also suggested the state charge Rs 5 lakh to convert an acre of agriculture land for real estate development instead of Rs 1.85 lakh as conversion charge and earth filling fee apart from a stamp duty on presumptive use. But Mitra has not acted upon it. “The twin proposals will further ease the financial burden on middle class families buying homes,” said Credai past president Sushil Mohta.


Union Finance Minister Arun Jaitley, who announced Union Budget 2017 on Wednesday, has granted infrastructure status to affordable housing. The experts opine that this move is a good boost to real estate/property sector.

Speaking to International Business Times, India, Joe Verghese, Managing Director, Colliers International India, said that the government’s decision will reduce the housing costs. “Granting infrastructure status to affordable housing is an extremely positive step to provide a boost to affordable housing development as well increasing access to capital at lower costs,” Verghese told IBTimes, India.

Granting infrastructure status to affordable housing will provide a boost in volume of construction activity across the country. A good boost to the construction industry that was struggling with reduced number of product launches in real estate in the last couple of years.

Capital gains on JDA to be taxed only at product launch, one year tax exemption from notional rental income from unsold inventory and reduction of long term capital gains tax period from three to two years provide respite to investors/ developers of real estate. This helps especially those holding real estate inventory/ stock. This is a great move to providing tax relief to developers in the residential sector where the sales have significantly dropped post demonetisation move, he added.

Talking about the government’s other plans, Joe Verghese said, The government has gone back to the basics and taking the required steps to strengthen foundations of livelihood, housing, credit, medical care, cleanliness, vocation training and infrastructure targeting the bottom of the pyramid. Rather than having quick fixes, it seems focused on measures that provide long term benefits to the country.

Considering the impetus being given to road infrastructure, manufacturing and affordable housing, the government has put in all the required ingredients to incentivise urban decongestion and the development of new industrial cities around our industrial transport corridors, he added.

Ravi Ahuja, Executive Director, Office Services and Investment Sales at Colliers International India, described this as a welcome move. “The announcement of affordable housing being given infrastructure status is a welcome move and will act as a catalyst to meet the objectives of housing to all by 2022, Ahuja told IBTimes, India.

Credit offtake towards affordable segment of housing will lead to creation of supply specially for both stake holders the first home buyer and developer who will now have access to cheaper funding.

“The government will redefine affordable housing – this is very much required, as we expect the government to make a deliberate decision on defining affordable housing keeping in view the differentiation between Tier 1, 2 and 3 locations / cities across the Indian geographies,” Ahuja added.

Ravi Ahuja also lauded the government’s plans for coastal road development. “The 2,000 km of coastal road development proposal in the budget will impact real estate in these locations positively. Mumbai will particularly gain if the scheme provides an expedition to the coastal road proposal. This will also boost industrial real estate in established and newly proposed industrial corridors. DMIC among other more matured industrial corridors newly established may see demand offtake due to this proposed budget measure, Ahuja said.

The budget put a lot of required emphasis on grassroots investments in the rural areas. The infrastructure status for affordable housing, tax reliefs for the real estate developers and investors are a great move to provide some relief to the residential sector but not enough to boost demand or sales. Efforts to send the signal that taxes rates would be going down are a positive sign though the same in corporate side should have been for all corporates and not just for the small and medium sizes, he added.

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