Property Tax

Willing to invest in real estate? South India is the best map for you:

  • The new Indian regulatory policies on its real estate brought vigorous improvements on its way, inspiriting the country’s southern region with a continuous momentum. And therefore, as expected, the rapid development also included the real estate sector where people can invest there money and help the sector grow more abundantly.
  • The market of real estate majorly focuses on the purchase and selling of different types of properties used as homes or for non-professional purposes within the cities and its outskirts.
  • In case you are planning to invest on real estate firms, south India is the best place for you.
  • Some of the best-known cities for investing are Bangalore, Hyderabad, and Chennai that have emerged as one of the best-performing real estate markets in the country.
  • While the majority of the other areas across the country reported downward pressure on prices and a reduction in supply, the cities towards the South continued to resist the recessionary pressures and reported price appreciation, albeit moderate, year-on-year.
  • The reasons behind the same can be attributed to limited new launches across the region, focus on completing delayed projects, availability of land parcels at reasonable prices, high retail growth, increased demand from Non-Resident Indians (NRIs) and the development of social infrastructure over several years.
  • Not only this, even the availability of excellent healthcare facilities, trained staff, and pleasant climate make South India one of the most vibrant senior living hubs in India.
  • Unlike the majority of markets across the nation, real estate in South India is end-user driven and not speculative. They complete the three-to-four-year cycle, in contrast to seven years in North.
  • South India doesn’t only attract the Indian investors but also non-resident ones called NRIs, due to the market stability.

Below listed carefully are the three important cities that are prominent for investment in terms of real estate:

Bangalore:

  • Bangalore till date remains the most recommended destination for investors and end-users over in terms of real estate sector.
  • Since past many years it is continuously attracting Indian as well as international investors.
  • The reason for selecting Bangalore as the top listed one is because of its macro-economic dynamics, smart infrastructure, favorable climatic conditions, silicon-valley, and enlarged properties and lands although largely crowded and densely populated.
  • Statistics shows that there was a declination of about 44% in the overall stock which were left unsold during the margin of 42 months in 2019.
  • Now since GST is on every desk, rates are still fluctuating. The fluctuation is also seen during the ongoing pandemic. There were enough damages but at the same time, there was also an unexpected relief in the form of new projects in the start of 2021, in which the lost sales were likely to recover.
  • You see the real estate is large sector so is the city of Bangalore. This city full of dreams has the lowest inventory overhanging on the competitive list to recover this sector and shine back faster.
  • The situation may improve in the next few quarters given by the performance of sales in Q3 2020.
  • The Karnataka Stamps (Second Amendment) Bill, 2020 also proposes to cut this stamp duty for flats priced below Rs 20 lakh from five percent to two percent.
  • The most preferred property types in Bangalore are both affordable and mid-segmented for maintaining the top-most property seeker with a ready to move-in with over 1800+ square ft.
  • Preference among the buyers is that the 2.5 BHK to 3 BHK may cost within a budget range of Rs 1 core.
  • Although lack of liquidity is a huge challenge here for the developers, yet the salary reduction may boost the sector into reducing the financial burdens over the buyers following a substantial increase in the disposable income.

Hyderabad:

  • Hyderabad has been one of the fastest-growing markets in India among 131 cities across the Asia Pacific regions, since the past few years.
  • The city’s property market has shown phenomenal resilience against testing times, in the past half-decade.
  • In Q3 2019, the city reported heightened activity in the western suburbs, including areas such as Kondapur, Gopanpally, and Kismatpur.
  • In terms of sales, the city trailed close behind its neighbouring counterpart Bangalore and reported 10 percent increase, YoY, in the same quarter.
  • While the western quadrant emerged as the frontrunner in terms of new launches in 2019, the northern suburbs, including Kompally and Bachupally, reported the maximum hike of 14 percent in property prices.
  • Despite the negative impact of the outbreak of COVID-19 in Jan-Mar 2020, the first two months witnessed robust commercial and residential activities.
  • Not to be forgotten that the rise in rates in Hyderabad coincides with the bifurcation of the state with Telangana and Andhra Pradesh becoming two separate states in 2014.
  • The strong evidence behind featuring Hyderabad as one of the best cities for investing on real estates, is because the demand for housing was not as badly impacted as in other cities.
  • According to the 2019-2020 statistics, Hyderabad stood on the fifth place with an average price of Rs. 5,593 per sq ft during September, 2020. The city had its same land amount price as Rs. 5,252 in September, 2019.

Chennai:

  • Chennai is one of the top metropolitan cities of India, having a high standard of living.
  • Dotted with a wide range of housing options, including apartments, row houses, villas, bungalows, and luxury homes; the real estate market of Chennai has registered significant growth over the years.
  • Moreover, the city is quite rapidly expanding its land coverage area, to attract not only homebuyers but also those who wish to invest in residential plots.
  • While March 2020 witnessed a slowdown and deferment of purchase decisions due to the impact of the pandemic, the overall launches in the first quarter of FY 2020-21, witnessed a growth of 23 percent, YoY.
  • The southern suburbs, including Perungudi, Pallavaram, and Navalur remained the most popular in terms of new launches during 2019.
  • Nearly 57 percent of the total launches during this period were concentrated in the middle and upper-middle segments.
  • According to a press release in December, 2020, Chennai was witnessed to suffer a major drop of 43% in its housing sales in the realty market, 2020. There were around 6740 units against 11820 units in 2019. Though the city added a nearby of 9170 units in that same year, but the drop by 29% compared to that previous year definitely made everyone believe that it would affect the start of the year 2021 following the pandemic.
  • But the most shocking news is that these same housing sales of Chennai boosted up to increase by at least 30% this year in 2021.
  • The prices may rise by up to % on the revival of demand for the residential properties because of lower interest rates and economic recovery.
  • This thus, makes sure to place Chennai in the top three for investing into real estate market, 2021.

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