Festivities ushers in the right time to invest in real estate

Dr Niranjan Hiranandani – CMD- Hiranandani Communities

The auspicious festive days of Gudi Padwa, Cheti Chand, Ugadi and Puthandu usher’s happiness and optimism among the home buyers to grab the deal. The home buying sentiment is right during this festive season which enhances the consumers’ confidence index as it is believed to bring luck and prosperity to any new developments.

India is witnessing resurgence of the second wave of Covid pandemic which may lead to slowdown in the short term, but nothing to worry as construction migrant labourers are looked after on site. This helps developers to ensure continuation of the production and sees no delay in home delivery as supply of raw material is also stable at the moment. As demand for owned homes has emerged significantly in the pandemic life as it offers stability and security. Hence, there is pent up demand and improved consumption appetite in backdrop of favourable external market conditions.

There are many factors that play a role in purchasing a property apart from it being well- designed, affordable or convenient. Market conditions and sentiments hugely govern this decision and today they stand as follows:

·         Low Interest rates: The home loans offered by all major banks are at comparatively low interest rates today. This allows homebuyers to reap the benefits of paying an affordable EMI today.

·         Tax benefits: Today, a homebuyer can avail benefits under three acts of the Income Tax Act- Section 80C, Section 24 and Section 80EEA. These sections can help one avail benefits of up to 5 lakhs annually.

·         Government Incentivization – Interest subvention is provided by the government to the home buyers in PMAY -Urban housing.

·         Low risk weightage: Real estate has always been a stable asset class. People are more receptive to owning a property as an investment over the pandemic especially since it provides much more stability and offers better returns, in comparison to other asset classes. Additionally, reforms like the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST), has allowed investing in real estate a more transparent proposition. Additionally, the RBI decision to lower risk weightage on housing loans has been well received by the industry.

·         Innovative flexible finance schemes: Financial Banks have now introduced innovative flexible payment schemes that eases home buying process with bridging the gap easily.

·         Array of choice & Grab the deal: Today, discerning home buyers have choice of multiple apartments offered from the developers and deal sweeteners makes it grab the deal opportunity for the fence sitters to turn into the actual home buyers.

·         Branded developers: Structural policy tsunami introduced by the Govt of India has rebooted the real estate sector. The advent of RERA has wiped off nite fly operators and branded developers have gained prominence on grounds of timely delivery, quality, and financial discipline. So, homebuyers are advised to do the due diligence before closing the deal.

With all these favourable factors, the time to invest in real estate is right and ripe. A recent media survey, ‘India Real Estate Report 2020’ found at least 89% of the respondents find now as the right time to invest in real estate. In fact, around 82% respondents confirmed that they are looking forward to buying a property in 2021.

Keeping this auspicious occasion in mind and the current time, Hiranandani Group is also coming up with new launches to cater the home buyers. The pioneer of mixed-used integrated township with a rich legacy of 45 years in creating vibrant community living- The Hiranandani Group is rightly accredited with the title of ‘Changing the Mumbai Skyline’.  The Group plays a catalytic role in the philosophy of ‘Health, Wealth and Happiness’. It fosters work – life balance to render the concept of ‘Live, Work and Play’ in the holistic ecosystem that it builds in its historic township projects. Today, the Hiranandani’s are well-known to develop a ‘city within a city’ by not just creating history but by discovering geographies. The gradual but natural expansion redefined ‘The way of Living’ with its statuesque high-rise towers, timeless neoclassical architecture, pristine green ecosystem, precision engineering, robust infrastructure and immaculate master-planning. The Hiranandani Home is a dream that augurs not just standard of living but the quality of living.

Today, Hiranandani Family is spirited with 15,000+ families across multiple locations and will add many more  in the near future.