Property Market In Delhi-NCR: 2021-22 Will Be A Great Year, Here Is Why
September month in India heralds the festive time of year. September is the month when almost everyone starts thinking about new purchases & investments. To take advantage of this emotion, real estate developers come up with huge discounts & offers to attract home buyers, offering perks such as gold coins, holiday trips, or anything else. On the other hand, due to the Covid-19, this year with sales in real estate is slowing, real estate developers are under lots of pressure to clear unsold inventory. To motivate people to buy, they have been coming out with different schemes and are even ready to negotiate prices with prospective buyers.
Not only real estate developers, banks & other financial institutions too, try to redeem the festival enthusiasm by providing loans on easy terms & affordable interest rates. All this could boost the sales, generally 20-25% more than the normal days of the year. Even, the last couple of years have been dry for the property sector because of the excess supply and sluggish economic condition of the country. The price of the property too has been sluggish. That’s why even with the excess of offers, property buyers in Delhi NCR are wondering – Is 2021-22 will be a great year for real estate investment?
Yes, here is why
Under the Union Budget 2021-22, Tax deduction of Rs. 150,000 on the interest section of affordable housing loans has been extended to 31st March 2022. Apart from this declaration, which is expected to give a demand spur to affordable housing, the Budget also sought to incentive the delivery of such residential projects by developers.
The Union Budget also presented tax exemption to affordable rental housing projects for urban migrants as a measure to increase the supply of low-cost rental housing in main urban centers. This declaration tracks the affordable rental housing complexes (ARHCs) scheme that was introduced in July 2020.
At present in real estate deals, while taxing income from capital gains, business profits, and different sources if the set value is below the circle rate by above 5%, the difference is considered as income both for the buyers and seller. To reduce hassle in real estate deals and provide support to the sector, it has been proposed that the limit be raised from 5% to 10%.
Rs. 100 Lacs Crore would be provided on infrastructure for the next 4-5 years across different sectors like residential, basic services, power, healthcare, institutes, transportations, logistics and warehousing, farming projects, etc.
Prop-tech has played an important position in serving real estate companies to facilitate business stability remotely during Covid19. Property buyers, sellers, and developers are more and more depending on budding digital tools generally allied with proptech to provide best selling and property management services. The introduction of proptech in real estate will see a major response in 2021-22 as home seekers have moved to online real estate portals. Property builders have accepted that their future looks down without the proptech feature, while proptech firms will look to develop and reinvent to welcome all modifications coming their way.
In the face of the short-term interruptions caused by the Covid-19 and different economic aspects, the real estate sector is ready to make a considerable recovery supported by the government initiatives and the vested interests of Indian citizens in search of safe & smart investment options in tough times. As a result, the real estate sector of Delhi NCR is on its way to recovery, and this could make sure a steady long-term investment option for every investor.
Q. How to invest in the real estate of Delhi NCR?
Ans. Real estate investors in Delhi NCR can consider 2 options in real estate investment. First, they can invest in residential property where they can earn good rental income & excellent returns after 5 – 7 years. In the second option, they can opt for partial ownership through REITs that allow them to invest any amount they want and earn dividends from appreciation.
Q. Is real estate a good investment in Delhi NCR?
Ans. Real estate investment in Delhi NCR has proven to be advantageous in the last few years thanks to the ability to endure and perform well in declining market conditions. This has made it one of the best investment destinations in India. On the other hand, with the temporary interruptions caused by the pandemic and economic conditions, the real estate sector is ready to make a considerable recovery supported by the government initiatives and the vested interests of Indian citizens in search of safe & smart investment options in tough times.
Q. How is the Delhi NCR property market likely to perform in 2021-22?
Ans. As we have observed from the beginning of 2 quarter of 2021, the real estate market is speeding up as more home buyers are eager to invest in the market. After the lockdown that led to the manual labor workforce’s reverse immigration, the on-site construction activities are continuing as the labor force is returning. The current buyer’s approach is creating a strong demand for safe, affordable, and ready-to-move-in homes. As a result, the property market is very well set to perform in 2021-22.
Q. Will property prices go down in 2021-22?
Ans. The annual price growth rate in many micro markets all over India has been around 0-7% over the last year, representing a muted price growth due to the pandemic. The lockdowns in India interrupted all major sectors & real estate for some time. At this time, the good discounts by builders and all-time low property prices are increasing the demand. The property value in Delhi NCR is now stable but expected to rise anytime.