The Uttar Pradesh Global Investors Summit is scheduled for February 2023, but that’s not the news for you today. As you can tell from reading the title, Noida Authority has been the talk of the town for achieving a milestone.

That’s right; investment proposals worth Rs 58000 Crore were signed by the Noida Authority for the city’s industrial, retail, and real estate sectors. However, Noida Authority’s work is not done yet since it has been assigned the responsibility of bringing in total investments of Rs 90,000 crore before the summit.

What’s important to note here is that out of the agreements totalling Rs 58,250 crore, Rs 30,000 crore have been pledged for the retail and real estate industries alone. As per the statement of a senior official of the Noida Authority, the initial target was to ensure investments of Rs 60,000 crore before the UP Global Investors Summit, but this was changed to Rs 90,000 crore.

By 6 January, the authority had signed agreements with 168 firms confirming investments of Rs 58,250 crore. Now, they are hoping to surpass the figure of Rs 60000 crore by 15 January. As far as investments in the real estate industry are concerned, they are mainly for commercial properties and group housing.

Read More: Why 2023 is the Best Time to Invest In Real Estate

Breakdown of Investors in Real Estate and Retail Sectors

Up to 18 reputed firms have signed investment MoUs of more than Rs 1000 crore each, and 13 companies will be investing over Rs 500 crore each. Needless to say, the future of the real estate and retail sectors of Noida City seems brighter than ever.

What’s Next?

An official from Noida Authority confirmed that the fruits of these investments would become noticeable soon. Plus, they are hoping for more investments in the future. At the moment, the implications of MoUs that have been signed already will spread over a period of 5 years.

The government of Uttar Pradesh is taking steps to attract more investments to the state and the city to promote development and modernization. For example, UP's Chief Minister went to Mumbai recently to invite some prominent figures to the Global Investors Summit and came back with investment proposals of up to Rs 5 trillion.

It is safe to say that this is just the beginning of state-wide development projects that are going to prove extremely beneficial for all parties involved as well as for the people.

The Budget 2023 will be presented to the parliament on February 1, 2023, by the Union Finance Minister Nirmala Sitharaman. Industry leaders from diverse sectors have placed high expectancies on the Budget 2023 and anticipate some pivotal announcements from the Finance Minister. In this blog we’ll be looking at some of the expectations of the real estate industry when it comes to Income Tax Deduction, Home Loans, Section 80 C, Home Buyers and more.

Let’s find out what industry experts have to say.

1. Focused tax deduction on housing loan principal repayments (Section 80 C)

Currently, Section 80 C of the Income Tax Act does not offer a focused benefit on housing which is the highest and most essential spending item for most taxpayers throughout their careers. Investors too have a number of investment opportunities, so the lack of a unique tax benefit on the principal amount of loans ultimately discourages them from investing in real estate. Home loan applicants will benefit greatly from a separate annual deduction of INR 150,000 for principal payments, which will help to increase housing affordability.

2. Raising the section 24 home loan deduction cap

The current limit for the Section 24 house loan interest deduction is INR 2 lakh. To enhance affordability and housing sales, this should be raised to INR 5 lakh.

3. Easing of capital gains requirements to aid homebuyers and increase affordability

According to section 54 of the Income Tax Act, long-term capital gains from the sale of an existing property may be used to purchase or construct a new home. If the investment qualifies for the exemption through a property that is still under construction, the investment can only be claimed if the property is completed within three years of the sale of the previous residence.

Residential construction projects are getting bigger in terms of the number of units, height, and amenities, which causes completion dates to be longer than three years. Furthermore, even if the implementation of RERA has brought about a significant improvement, completion dates for ongoing projects frequently go over the allotted time. This makes it challenging for purchasers of homes still under construction to write off capital gains. Experts recommend that the current three-year completion deadline for houses that are under development be extended to five years in order to remedy this.

Let’s now move towards a few issues highlighted by experts and their recommendations to overcome these.

Issue #1 - Making affordable housing projects more financially viable.

What Experts Recommend:
The deadline for registering an affordable housing project to receive a tax break under section 80IBA has lapsed. The section 80IBA registration timeline must be reintroduced.

What Are Their Justification:
Section 80IBA provided a 100% tax exemption for affordable housing projects that were approved through March 31, 2022. This clause stipulated that, subject to certain restrictions, such as the approval date, developers could claim a 100% tax exemption on earnings.
As per industry experts, it is critical to resurrect this measure since it is undoubtedly the most physically meaningful measure for increasing the viability of affordable housing projects.

Issue #2 - Rental housing in the affordable sector requires a boost.

What Experts Recommend:
100% exemption for rental income up to INR 3 lakh for houses up to INR 50 lakh.

What Are Their Justification:
This would encourage people to invest in the inexpensive housing segment, which is suffering from a severe housing scarcity. Owners of such houses avoid renting them out due to the low rent yields. This tactic will clearly encourage such property owners to rent out their residences to the targeted demographic, supporting efforts to increase the supply of housing in this market.

The Budget Session of the Parliament will commence on 31st January, 2023.

NOIDA: In two years, Gautam Budh Nagar will get northern India’s first medical equipment and device manufacturing park. Other four parks are in the southern states of AP, Telangana, Tamil Nadu and Kerala.

The park will be developed by the Yamuna Expressway Authority in Sector 28 of YEIDA area. In March, YEIDA will bring out a scheme for the project, which is estimated to cost around Rs 5,000 crore, of which Rs 100 crore will be borne by the central government, officials have said.

TOI has learnt that the Yamuna Expressway Authority has already earmarked 125 acres for the first phase of the scheme, where about 250 units are to be built. Here, domestic and foreign companies will manufacture various medical devices, including radiological devices such as CT scan and X-Ray machines , blood pressure monitors, pulse oximeters and ventilators, with production targeted to start by 2023.

Arun Vir Singh, CEO of YEIDA, said, “The medical device park will have plots ranging from 1,000 sqm to 4,000 sqm, which will be developed as ‘flatted industrial units’ of plug and play sheds (single or multi-storey roof-covered structures in the form of buildings). Both options will be there. It will be the first such park in northern India. We will bring out the scheme in March as all preparations are underway.”

Following the Covid pandemic, there’s a need to further strengthen domestic medical equipment manufacturing, especially as the central government has stepped up efforts towards self-sufficiency in this field. In view of this, YEIDA’s medical device manufacturing park gains even more significance, officials said.

According to estimates, the medical devices retail market in India is of around Rs 70,000 crore, whereas the domestic medical devices industry is smaller even though India is the fourth-largest market in Asia. The country is largely an importer of medical devices, with domestic industry accounting for about 2% of the global industry, which stands at USD 250 billion, as per the estimates.

Credits: www.timesofindia.indiatimes.com

Yamuna Expressway Industrial Development Authority (YEIDA) CEO Arun Vir Singh and BJP MLA Dhirendra Singh on Wednesday inaugurated a branding structure to promote the upcoming Apparel Park near the proposed Jewar International Airport along the Yamuna Expressway.

The structure is located 500 meters away from the Jewar Toll Plaza and has been developed by the Noida Apparel Export Cluster (NAEC). The structure carries the signage 'City of Apparel', depicting the status accorded to Gautam Budha Nagar by the Uttar Pradesh government under the One District One Product (ODOP) scheme.

Jewar MLA Dhirendra Singh said, "As part of the publicity about the apparel industry and the apparel park, the NAEC has installed a colourful and attractive illuminated branding structure 500 meters away from Jewar Toll Plaza towards Noida on Yamuna Expressway. It is also for the beautification of the city."

CEO Arun Veer Singh said, "Undoubtedly, it is a matter of pride for us to declare the district 'City of Apparel' by the state government. Besides, the Government of India has also included Noida in the list of towns of 'Export Excellence for Apparel' which will eligible Noida for various apparel export promotion schemes. These export-friendly initiatives will open new avenues for development and expansion of the apparel industry in Noida."

The long-awaited Apparel Park is coming up at Sector-29 on the Yamuna Expressway next to the proposed Jewar International Airport. At least 91 entrepreneurs will establish their apparel production/export units on 150 acres of land. The land allotment process to the apparel entrepreneurs is expected to be completed next month by YEIDA.

NAEC has proposed to set up apparel training centers in nearby villages with support from ATDC to provide training to local people. When trained, these people will be employed in production units in the Apparel Park.

Credits: www.indiatoday.in

ET Wealth's realty hot spot series takes a look at 7X & 11X, NOIDA. It comprises sectors 74, 75, 76, 77, 78, and 118, which also have some of the best residential projects in Noida. Multiple residential options including apartments in Noida are there across all budget segments. It is close to employment hubs, including NSEZ, Sectors 59, 60, 62, Noida Phase 2, and Greater Noida Expressway. Well-connected with nearby localities and boasts of good schools, hospitals, malls, markets, and restaurants.

Credits: Economic Times

New Delhi: As the three high speed rail corridors are expected to start from Delhi for Amritsar, Ahmedabad and Varanasi, the national capital is likely to get two high speed rail stations in different areas, officials related to the development said on Sunday. Also Read - 4-storey Building Collapses Near Delhi's Turkman Gate

Speaking to IANS, National High Speed Rail Corporation Limited (NHSRCL) spokesperson Sushma Gaur said, “NHSRCL is exploring all the possibilities to plan two high speed rail stations in Delhi.” Also Read - Farmers Protest Updates January 30

She said that one of the stations is in close proximity of Sarai Kale Khan and Nizamuddin railway station for Delhi-Varanasi high speed rail corridor, which may provide road connectivity to the high speed rail users through outer ring road, metro connectivity through pink line metro, interstate bus connectivity through Sarai Kale Khan ISBT and regional rail connectivity through RRTS system. Also Read - Blast Near Israel Embassy in Delhi: States, Airports on Alert; Jaishankar, Doval Speak to Israeli Counterparts

The NHSRCL has started the aerial LiDAR survey for the 800km Delhi-Varanasi high speed rail corridor earlier this month.

She said that the tenders related to data collection and various other activities including LiDAR survey, required for the preparation of Detail Project Reports for Delhi-Varanasi, for which the first draft of the DPR has already been submitted.

The NHSRCL on January 10 this year launched the LiDAR survey for the Delhi-Varanasi route from Uttar Pradesh’s Greater Noida, wherein a helicopter fitted with state-of-the-art aerial LiDAR and imagery sensors will capture data related to the ground survey along the proposed route.

An official related to the development told IANS that there will be two high speed rail stations in Gautam Buddha Nagar.

Another official related to the development said that one of the high-speed rail station will come up near the proposed Jewar International Airport while the another one near Sector 148 in Noida.

Talking about another station of the High Speed rail in Delhi, she said, “Locations are being explored for the other station for Delhi-Ahmedabad and Delhi-Amritsar high speed rail corridor, in close proximity of Sector-21, Dwarka Metro station and Bijwasan Railway station.”

She said that this may provide connectivity to Indira Gandhi International (IGI) airport and central Delhi through Airport Express Metro Line and West Delhi, Central Delhi, East Delhi and Noida through Blue line Metro Line, upcoming International Convention Centre at Sector-25 and Gurugram.

The Delhi-Amritsar-Chandigarh is 459 km long high speed rail corridor, while the Delhi-Ahmedabad is 886 km long high speed rail corridor.

The official said that the high speed rail stations in the national capital will be finalised only after the DPRs are submitted.

Besides these three corridors, the Ministry of Railways has entrusted the work to the NHSRCL to carry out the detailed project report (DPR) for the 711-km-long Mumbai-Hyderabad high-speed rail corridor, which will pass through Pune; 753-km-long Mumbai-Nagpur and as well as the 711-km-long Mumbai-Hyderabad bullet train corridor.

The NHSRCL has also invited tenders for preparing the DPR for the 435-km-long Chennai-Mysuru and 760-km-long Varanasi-Howrah high speed rail corridors’.

The NHSRCL is collecting data on these new proposed corridors for the preparation of the DPRs.

LiDAR survey alignment or ground survey is a crucial activity for any linear infrastructure project as it provides accurate details of areas around the alignment.

This technique uses a combination of laser data, GPS data, flight parameters and actual photographs to give accurate survey data.

“Based on the findings of the survey, designing of the vertical and horizontal alignment, structures, location of the stations and depots, land requirement for the corridor, identification of project affected plots/structures, right of way etc are decided,” Gaur said.

The work on the 508 km Mumbai-Ahmedabad Bullet train project is also in full swing.

Prime Minister Narendra Modi along with his then Japanese counterpart Shinzo Abe had laid the foundation stone for the MAHSR corridor on September 14, 2017.

Credits: www.india.com

LUCKNOW: UP government has achieved its five year targets for the electronics manufacturing sector in just three years, it has claimed.

In three years, it has attracted investments of Rs 20,000 crore and generated employment for three lakh persons. The government has said that due to its policies, especially during the Covid-19 period, companies from China, Taiwan, Korea have shown interest in investing in the state.

An Electronic Manufacturing Cluster is also being set up in the National Capital Region where foreign companies like Oppo , three Indian companies and four Taiwanese companies are setting up their units with an expected investment of Rs 2,000 crore.

“We had to achieve the target of getting investment of Rs 20,000 crore and employment to three lakh persons by 2022 but achieved it two years earlier with as many as 30 investors ready to invest in the sector due to the policies of the state,” said Alok Tandon, industrial infrastructure and industrial development commissioner. He added that Noida, Greater Noida, and Yamuna Expressway areas had come up as electronics manufacturing hubs. Samsung, with the largest mobile phone manufacturing unit in the world, is also located in Noida.

Tandon said that these gains were possible due to the government’s ‘UP Electronics Manufacturing Policy-2017’ which was introduced to encourage investment in the sector. Under the policy, Noida, Greater Noida and Yamuna Expressway have been declared as ‘Electronics Manufacturing Zones’. “After the success of the 2017 policy, the government brought out a more advanced UP Electronic Manufacturing Policy-2020 in August 2020 which aimed at developing the electronics sector in all parts of the state.

In view of the successful investment scenario in the sector, the government has now decided to revise the target to bring fresh investments of Rs 40,000 crore and further generate 4 lakh employment in the next five years,” Tandon said.

Under the 2020 policy, three electronics manufacturing clusters, which include an electronic city near the Jewar Airport on Yamuna Expressway, a defence electronics manufacturing cluster in Bundelkhand, and a medical electronic manufacturing cluster in the Lucknow-Unnao-Kanpur zone, are proposed to be established. In addition to this, the government also aims at establishing manufacturing industries in Bundelkhand and Purvanchal regions for which it has announced various financial incentives under the new policy.

Credits: www.timesofindia.indiatimes.com

The Noida Metro Rail Corporation (NMRC) has issued a tender to develop five Metro stations on the extension line of the Aqua Line to Greater Noida West in the first phase. The proposed route will connect Noida’s Sector 51 station with Greater Noida’s Sector 2, and help make commuting easier of scores of residents living in high-rises and villages en route.

On December 3, 2019, the Uttar Pradesh cabinet had approved the 14.95km Aqua Line extension corridor comprising nine stations from Noida’s Sector 51 to Knowledge Park 5 in Greater Noida.

Praveen Mishra, executive director, NMRC, confirmed that the tender has been issued. The 9.15km route in first phase will have five Metro stations -- Sector 122 and Sector 123 in Noida; and Sector 4, Ecotech 12 and Sector 2 in Greater Noida.

In the second phase of 5.8km, there will be four Metro stations; in Greater Noida’s Sector 3, Sector 10, Greater Sector 12 and Knowledge Park 5.

Sandhya Sharma, deputy general manager, NMRC, said the Greater Noida West extension line is significant given the number of residential colonies in that area. “The NMRC has issued a tender on September 29 and the last date for submission of bids is October 31. The project will be completed in 24 months from the award of contract. Soil testing and geotechnical survey of the route have been completed,” she said.

The project will be funded by the state government, the Centre, the Noida authority and the Greater Noida authority. As per the tender document, the project cost of the first phase is approximately ₹491.99 crore. The NMRC will also hold a pre-bids meeting on October 9.

Greater Noida West residents said the extension corridor will immensely help ease commuting, as the Metro will go through the densely populated areas of Gaur City and Greater Noida West, which have around 3 lakh under-construction housing units and around 75,000 flats already occupied.

Sumil Jalota, a resident of La Residentia, in Greater Noida West, said at present, people mostly use their personal cars for travelling to Noida and Delhi due to poor connectivity. “Once the Aqua Line reaches Greater Noida West, it will connect us to Delhi as well as Gurugram and Faridabad. This will also end traffic jams in areas nearby. We hope that the project is completed in a timebound manner,” he said.

The NMRC commenced operations of the Aqua Line, comprising 21 stations from Sector 51 in Noida to Depot station in Greater Noida, on January 25, 2019. This existing corridor has 15 stations in Noida and six in Greater Noida. This 29.71km Aqua Line was developed at a cost of ₹5,503 crore. The average daily ridership in February, 2020, stood at 25,907. After the lockdown, it resumed services on September 7 and has an average daily ridership of 4,200.

Credits: www.hindustantimes.com

The Noida authority on Sunday said it will complete work on four projects, worth nearly ₹220 crore, by the end of this month.

These projects include an underground car parking in Film City Sector 16A (being developed at a ₹110 crore budget), another underground car parking in Sector 3 (₹62 crore), Shaheed Bhagat Singh Park in Sector 150 (₹ 23 crore) and Biodiversity Park in Sector 91 (₹25 crore).

Due to the Covid 19 pandemic, work on these four projects was disrupted and these could not be opened for the public earlier, but, now, the authority officials said, they have expedited work on these projects so these are opened for the public use without any delay.

“We are giving finishing touches to these four projects so that these can be completed by September end, and be open for public use at the earliest,” said Rajiv Tyagi general manager, Noida authority.

The 1400-car capacity, three-storey car parking project, proposed on an area of 19,202 square metres in Film City, was started in July, 2015 with a December, 2016 target. But the project missed several deadlines. The coronavirus triggered lockdown further disrupted the work. Officials said that it will be opened for use by September end. Similarly, work on the car-parking facility at Sector 3’s F block started in January 2016, and supposed to be ready by July 2017. The project will now be ready by September end and will have a 450-car capacity, said officials.

The authority had in January, 2016 conceived the idea of developing a park in the memory of Shaheed Bhagat Singh. But work at the site in Sector 150, which is home to newly built group housing towers, started only in April, 2018. According to the Noida authority officials, it has planted 2,000 trees, 75,000 shrubs at the park, so far.

Spread over 75-acre green area along the Noida-Greater Noida Expressway, the Biodiversity Park in Sector 91 once ready would be the city’s largest park. The authority has planted as many as 4,322 traditional trees including neem, jamun, banyan and mango besides 19,625 ornamental trees.

Both these parks are expected be open to the public by the month-end.

Credits: www.hindustantimes.com

NOIDA: The Noida Metro Rail Corporation (NMRC) will float within a week fresh tenders for Aqua Line’s Greater Noida corridor, which will branch out from Sector 51 to Knowledge Park 5. Work on this extension is expected to start sooner than two other arms of Aqua Line because the detailed project report has already been approved by the cabinet.

Once ready, this 15km extension will link the Greater Noida sectors with Delhi Metro’s Blue Line and improve connectivity with the Capital.

Of the total nine stations on the route, five will be built in the first phase by 2022. This will prove to be a crucial transport link for residents living in Greater Noida, where thousands of flats are expected to be delivered by next year.

Another key Aqua Line route — from Sector 142 to Botanical Garden — has been finalised by the NMRC, but it is being vetted by the metro board. The routemap will then be sent to the Centre for approval. The detailed project report for the third extension — Boraki to Metro Depot — is being prepared by NMRC.

“Work on the Greater Noida corridor (Sector 51 to Knowledge Park V) will start first because its plan has already been approved by the cabinet. Applications for fresh bids will be issued within a week,” said Ritu Maheshwari, the NMRC managing director.

The need for fresh bids for the Greater Noida route was necessitated as the previous tendering process had to be cancelled after one of the three companies that had shown interest had to be disqualified because of lack of expertise in the field.

In June, three companies had responded to applications for building the first phase of the route. They were Sam India Builtwell Ltd, NCC Ltd and Shrisay Infotech. Of them, Shrisay had to be ruled out for lack of expertise.

“We have to float fresh tenders as the earlier one left us with only two respondents,” Maheshwari had told TOI earlier.

Knowledge Park, the last station on the route, has a number of educational institutes and once the entire stretch is built, it will benefit a number of students who now have to depend on other modes of transport like auto-rickshaws and cabs to reach the nearest Aqua Line station.

The Greater Noida corridor will be built in two phases — the first one will be 9.6km long from Sector 51 to Greater Noida 2. It will have five stations — sectors 122, 123, Greater Noida sectors 2, 4 and Ecotech 12 — and is estimated to cost Rs 430 crore. All these stations will be on an elevated platform and are expected to be built by 2022.

The second phase will have four stations — Greater Noida sectors 3, 10 and 12, and Knowledge Park 5.

Aqua Line currently has no interface with Delhi Metro, affecting both its viability and ridership. The need for such a connector has often been voiced by Greater Noida residents, who need to travel to the Capital regularly for work and have to depend on road transport to commute.

Credits: www.timesofindia.indiatimes.com

Officials say there are plans to facilitate landing of Mi-172 helicopter at the heliport. The heliport will also have facilities for helicopter maintenance.

Noida Authority CEO Ritu Maheshwari said the heliport in Noida will boost business activities and the city's overall development.

The Noida Authority today signed an MoU with Rights Muted to develop a heliport in Sector 151 A. The construction work is expected to start soon.

The project is aimed at providing helicopter facilities to neighbouring cities at economical rates.

Noida Authority CEO Ritu Maheshwari said the heliport in Noida will boost business activities and the city's overall development.

The Noida Authority will provide Rs1.69 crore for technical consultancy for the heliport's construction.

The terminal building of the heliport will come up on an measuring 500 square meters. Officials say there are plans to facilitate landing of Mi-172 helicopter at the heliport. The heliport will also have facilities for helicopter maintenance.

"There will also be overhauling and three helicopter parking facilities. As many as eight helicopters will be able to land at the heliport that will be coming up at Noida Sector-151A," the officials said.

Credits: www.indiatoday.in

GREATER NOIDA: The Greater Noida Industrial Development Authority (GNIDA) will soon start analysing the steps that can be taken on an urgent basis to streamline traffic movement across Kisan Chowk (Gaur City Chowk), Pari Chowk, Surajpur entry point, Tilpata Chowk and Honda Chowk — the five busy junctions in the city.

Officials have started work on a Comprehensive Mobility Plan (CMP) for the city. The decongestion of the five hotspots through short-term measures would be taken up in July and August, they said.

The study would be conducted in two phases. The first phase would be focused on strengthening public transport and mobility while the second would cover the planning and designing of roads and junctions.

In November last year, the authority had roped in RITES, a central government engineering consultancy company based out of Gurgaon, as its Traffic and Transport Management Consultant. “RITES team working on the CMP for Greater Noida presented findings of their preliminary survey on June 25 through video conferencing. Problem areas plaguing traffic movement at these junctions have been highlighted in their preliminary report. Officials concerned are studying the report and would take remedial action,” said GNIDA’s chief executive officer, Narendra Bhooshan.

The RITES team would study traffic situations across 20 busy locations before suggesting a master plan for overall traffic and transportation management in the town.

Bhooshan said there is a need to hire a professional agency for traffic planning since the population of the city is expected to reach 25 lakh by 2030 and all smart cities need to plan for the future growth. Apart from suggesting the ways to improve the accessibility and segregation of pedestrians, daily commuters, heavy vehicles, public transport and buses, steps required to promote usage of bicycles through the development of pick-and-drop bicycle parks, on the lines of European cities would be covered.Generating e-challan through traffic lights, space for bus stands, public transport hubs, bicycle parking and bringing down congestion around metro stations would be part of the study.

Accessibility and interdependencies depending upon future growth in different sectors as per land use, economic development, demography, the environmental impact would be considered by the consultants.

“We want to undertake urban development in a way that reduces traffic and dependency on cars,” said general manager, projects, GNIDA, Samakant Srivastava. Urban transport service planning (routes, frequency, timing) and traffic forecast would be included in the study, officials added.

RITES has been given a time of 18 months to complete the study and the final report would be ready by June 2021.

The authority would include the points suggested by the consultant during urban planning and develop infrastructure accordingly.

Credits: www.timesofindia.indiatimes.com

Opportunities seldom knock twice! Even though the real estate market sentiment is low in the wake of the continuing COVID-19 crisis, the majority of buyers are interested in buying properties. In fact, it is the right time to clinch the deal as the realty market is flooded with different beneficial schemes and lucrative offers.

The unprecedented COVID-19 crisis has taught a lesson to all of us that it is always better to own a property rather than living in rented accommodation. One must at least own a home to get some kind of material security in troubling times. It is always advisable to buy a decent residential property to live peacefully and stay happy with your family through the entire ups and downs of life.

Currently, in the real estate market, the consumer is in the driver’s seat as they enjoy the opportunity to choose from a plethora of ready-to-move-in options. If we go by the market reports, there are 6.44 lakh residential units available across the top seven cities in India. In this favourable scenario that has emerged to benefit the homebuyers, if you have the money to clinch your decision to buy your dream property, you must go ahead.

Home loan rates have also come down to benefit homebuyers further. With the recent 40 basis points cut in repo rate by the RBI, home loan rates will further nosedive. Even though the lockdown has created several challenges for the real estate sector, the smart market players have the answer to all these obstacles.

While the homebuyers are not preferring to visit project sites to follow COVID-19 protocol, the developers have adopted the online mode to assist them in their home search. Further, they are offering various lucrative offers such as gifts on every booking with reduced booking amount and cashback schemes, among others.

The developers are interacting with the clients through online means of communication apart from giving them an online presentation of their projects. Some of them have also come up with a loan-free pay-on possession payment plan for the buyers. All these efforts have turned out to be positive for the buyers and have helped the developers in driving sales even at the time of crisis.

We cannot remain in lockdown mode forever, and we have to continue all our activities to support the economy while following all precautions. Actually, it is time now to revamp all our strategies and find innovative ways to attract customers. As a result, the market has become exceptionally conducive for homebuyers. Moreover, since the interest rate is low on fixed deposits as well, investment in properties provide the homebuyers with a safe avenue to grow their asset and yield high returns.

Further, the RBI has recently extended the moratorium on loans for three months which will further help the consumers in getting their finances in order at this time of crisis. All these positive announcements have altogether made the property purchase more beneficial for the homebuyers. For them, it is a once-in-lifetime opportunity to grab without hesitation.

Credits: www.99acres.com

After getting ‘In Situ permission’ from respective authorities, leading real estate developer Ace Group has resumed construction work in its projects ‘Ace Parkway’, Noida and ‘Ace Divino’, Greater Noida West.

Ace Group is following all the protocols and necessary precautions related to COVID-19 like strict social distancing, proper sanitisation and maintaining hygiene at its construction sites to protect the health and safety of the labourers.

Noida/Greater Noida, 31st May 2020: Realty major Ace Group has announced to have resumed construction work in its projects ‘Ace Parkway’, Noida and ‘Ace Divino’, Greater Noida West after getting ‘In Situ permission’ from respective authorities. A press release issued by the company says that it is following all the protocols and necessary precautions related to COVID-19 at its construction sites to protect the health and safety of the labourers.

Ace Group has resumed construction work with limited manpower and it has ensured measures to maintain strict social distancing norms and other safeguards like proper sanitisation, hygiene best practices at its construction sites. While the Ace Group is regularly sanitising its projects sites, it has also provided labourers with masks, gloves, sanitisers and soaps for washing hands frequently. The developer has also arranged for meals to be provided to the labourers twice a day. Ace Group is also carrying out their routine health check-ups, besides mandatory thermal scanning of everyone entering the construction sites.

Ajay Chaudhary, CMD, Ace Group said, “Despite facing some supply side hindrances of the construction materials due to the ongoing lockdown we have resumed construction at our projects sites with simultaneously ensuring the safety and well-being of our construction workers as our top priority. We are also creating awareness among them regarding social distancing and hygiene best practices to curb the spread of COVID-19. As a socially responsible firm, we also understand that we have the responsibility to support our communities especially those who are vulnerable hence we have also arranged for their meals, shelter and healthcare at our project sites. ”

Nestled in the lap of luxury at Sector-150, Noida, Ace Parkway encompasses spacious two, three and four BHK apartments. It’s a classic living destination for luxurious, ingenious and most importantly peaceful living with abundance of facilities and amenities. ‘Ace Divino’ located at Sector-1, Greater Noida West is the other most sought after residential project of Ace Group, which offers aesthetically beautiful apartments of two and three BHK. The premium apartments at Ace Divino imbibe all the modern amenities to provide Futuristic Living with in-campus shopping, Zen Garden and a host of World-Class features.

Credits: www.realtynmore.com

NEW DELHI: The RBI's announcement is good news for home loan borrowers secure income , as interest rates in this category will come down by 40 basis points 100bps equal 1 percentage point) to around 7%. This is the lowest level in over 15 years.

Also, borrowers who are facing income uncertainty because of the Covid-19 lockdown can avail of an additional three-month moratorium to get their finances in order. Those borrowers who have not availed of a moratorium so far but are now facing income pressure can still defer their repayments for three months. For a loan of Rs 30 lakh with a remaining maturity of 15 years, the net additional interest would be approximately Rs 2.34 lakh — equal to eight EMIs. A part of this burden could come down because of the reduction in interest rates.

For existing borrowers, SBI’s interest rates on home loan up to Rs 30 lakh will automatically come down to 7% from the existing 7.4%, on loan between Rs 30 lakh and Rs 75 lakh to 7.25% from 7.65%, and above Rs 75 lakh to 7.35% from 7.75%. For women borrowers, the rates would be further lowered by 5bps.

Since October 2019, when home loan rates were linked to the repo rate, interest has been cut by 1.4 percentage points. The EMI on a Rs 30 lakh loan is now down to Rs 19,959 from Rs 22,855 in October 2019 -- a reduction of Rs 2,896.

Housing finance companies and those banks that have not linked their home loan rates to the repo rate may not pass on the reduction in their home loans. However, driven by competition, HDFC has already brought down its rates to 7.50%. To improve the transmission of rates, the RBI had forced banks to link their interest rates on priority sector loans — including home loan — to an external benchmark rate (EBR). Most of the banks chose repo rate as their EBR.

On May 8, some of the banks like SBI increased the spread on home loan rates for new borrowers by 20bps by increasing the margin over and above the benchmark rate of 7.05% pegged against the repo rate. SBI did it, saying that due to the pandemic, the credit risk of borrowers had gone up and so the bank had increased the risk premium by 20bps.

Many banks argued that the repo rate cut does not lower their cost of funds, but leads to lowering of lending rates for existing borrowers. Therefore, banks may resort to raising spreads. A senior banker said that the lowering of the rates matching the present round of reduction in the repo rate would be circumvented by banks.

Credits: www.timesofindia.indiatimes.com

The ownership of the house brings with it an unmatched sense of security.

Amid coronavirus pandemic, real estate has once again emerged as the safest investment option. For Indians, owning a home has been traditionally considered a matter of prestige as well as safety. The sector has been in the doldrums from the last few years with the sharp rise in equity markets with investor sentiment favouring the latter. A preference for paying rents as against making long-term investment commitments in homes gained prominence.

The reluctance to invest in real estate was based on shorter returns, a higher rate of interest on home loans and the argument that it is cheaper to rent than buy a house. However, the coronavirus pandemic that we are facing right now will change the mindset.

For starters, the ownership of the house brings with it an unmatched sense of security. The people will seek to own their personal house and that will be the silver lining going forward. The ongoing weakness in the equity markets will further aid the sentiment and revive consumer interest in the sector. The value of properties in the real estate market will, therefore, remain stable.

Investors will seek greater transparency and trust in their investments. To put it into perspective, the private market commercial real estate returned an average of 9.85 percent over the past five years, according to the National Council of Real Estate Investment Fiduciaries’ (NCREIF) July 2018 data. The credible performance was achieved, together with low volatility relative to equities and bonds, for highly competitive risk-adjustment returns.

On top of everything, real estate is not paper money, this is the asset you can hold tangibly which further enhances its reliability and return on investment. The positive relationship between GDP growth and demand for real estate stems from the inflation hedging capability of the sector.

As economies expand, the demand for real estate drives rents higher and this, in turn, translates into higher capital values which make real estate a secure investment in that sense. Thanks to the Reserve Bank of India (RBI) announcement for reducing repo rate by 75 bps and the new base rate is 4.4 percent will ensure the reduction of the home loan interest rates which is a further sentiment booster. Fence-sitters must use this period wisely and look to enter the market actively.

The post-pandemic world will be good for the real estate sector, the one sector that will emerge as the silver lining in such a bleak scenario. Timing is crucial when one is considering investing in real estate. And the time now is ripe to put it through action. Financial security is foremost on people’s minds and one must deploy their money through multiple avenues. In the current situation, real estate offers you the best bet — stability, security and safety.

-Ram Raheja is Director at S Raheja Realty. The views expressed are personal

Credits: www.cnbctv18.com