Tag: Prateek Mittal

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Sale of plots picking up pace, likely to breach 2020 mark sooner

Jul 26, 2021 by Rekha Nair 0 Comments #Ajnara India Ltd., #Ashok Gupta, #CMD, #Deputy MD, #Dhiraj Jain, #Director, #Executive Director, #Mahagun Group., #MRG World, #Prateek Mittal, #Sushma Group, #Vikas Garg

According to insider reports, the number of plots sold since 2019 has been declining; however, this year, the progress has been good and plots’ sale is likely to breach the 2020 figures at the end of the second half of 2021. Realty experts say that the in 2020 the sale of plots came down to 50% compared to 2019, but post pandemic the situation has improved with people coming out invest in plots from end-user perspective as well as investors.

“The market is booming, and based on the flow of people, it’s worth noting that having a plot near a financial centre can help you earn a good return. Although prices are now low, they are expected to rise as the economy recovers from a major setback caused by the COVID issue. The flow of people towards places with the best health facilities and work possibilities will increase, and these metros will become goldmines for those who have purchased plots,” says Prateek Mittal, Executive Director, Sushma Group.

Realtors feel that the increased sale of plots attests that post-pandemic people have started looking for independent pieces of land where they can spend a healthy and secure life. The plots launched by reputed developers are the first choice as they add credibility and promise a better lifestyle in gated communities. Throwing light on the trend of plotted developments, Dhiraj Jain, Director, Mahagun Group, says “Many reputable developers are now active in plotted development projects across the country, and demand has always been strong. Builder-planned communities provide the infrastructure needed to begin living and offer a good return on a patient long-term investment.”

Real estate brokers say that more than 11,000 units were launched in the first half of 2021 in top cities compared to around 16,000 in 2020. Maximum units were launched in Chennai, Bengaluru, and Hyderabad; the Delhi NCR market witnessed the launch of more than 600 units in the first half compared to around 1100 in 2019. “Plotted development investment is a time-honoured tradition in India, and COVID-19 has bolstered demand for plotted development as a long-term investment. Buyers are looking for developments like this in gated communities to expand on and utilise as separate residences. Plotted developments by well-known developers are constantly in demand, and they promise a solid return on investment. The value proposition, however, is dependent on the geography and infrastructure,” adds Ashok Gupta, CMD, Ajnara India Ltd.

Buyers have long been torn between living in an apartment or on separate floors; the dilemma is deciding between having your patio and sharing utilities with others. “However, having a yard in a metropolis is a pipe dream due to land scarcity and high prices. As a result, developers are launching a slew of plotted development projects in Metro’s outskirts; these projects prove to be rather popular, especially in the post-pandemic age, when people crave more space. Authorities plots are always safe; if a private developer is launching a planned development project, one should always choose reputable developers,” says Vikas Garg, Deputy MD, MRG World.

Business World

Navigating the current market for a real estate purchase

Sep 11, 2020 by Gouri Achary 0 Comments #banks and housing finance companies, #Executive Director, #Prateek Mittal, #real estate purchase, #Sushma Group

Buying a home or living on rent has always been a crucial choice for many. Each option comes with its own set of pros and cons depending majorly on the financial health of the homebuyer and the property units available. While the popular thought remains rental homes being the cost-effective choice when compared to purchasing a home, a rational individual must assess the whole process before settling on a rental agreement that comes with certain appreciation annually or half-yearly.

Tenants, who wanted to upgrade their living conditions before lockdown, can think of buying a property instead of shifting to another rented accommodation. This is an ideal time as home loans are currently in their best interest rate possible. RBI has cut the repo rate by 40 bps in the wake of the ongoing crisis; this directly affects the lending interest rates of banks. Repo rate currently stands at 4% as compared to 6.25% in 2018, and close to 5.75% in June 2019. SBI, the largest lender of India is providing home loans at just 6.95% interest rate. The fence-sitters who were planning to purchase a home can also utilize this opportunity. Developers with a track record of good quality deliveries will be the best bet in these times. Many of them are open to offering deferment payment plans only up to a definite period, looking at the current market condition.

In a recent consumer sentiment survey conducted by 99acres two out of every third homebuyer is now back in the real estate market. Out of them, 33% are well adjusted to the thought that it is a good time to buy a new house while 32% are in the finalization stage.77% of the home buyers expressed their purpose of purchase as end-use whereas only 23% are willing to purchase the property for investment purposes. Additionally, ready to move in property continues to be the maximum preferred choice as 64% of the homebuyers are inclined on investing in that.

A first-time buyer can choose between banks and housing finance companies for taking loans after considering the terms, procedures, and policies. HFCs don’t have to necessarily follow the repo rate linked lending rate (RLLR) mechanism; they set their rates based on the cost of funds. Buyers looking to purchase property as early as possible for availing some of the benefits and payment deferment offered by developers must consider private banks and HFCs to be the wiser option. The process of sanctioning and disbursing of loans is easier and quicker there when compared to public sector banks. Even though public sector banks offer cheapest interest rates for home loans, but the reduced repo rate cut has significantly lowered the interest rates in private banks as well.

Eligibility to home loan also comes with certain tax benefits, in these times of uncertainty owning an asset that holds the potential of yielding better returns in future comes across as an ideal financial benefit. Thus, it is time you achieve freedom from your monthly rentals, and start putting a share of your income in an asset that will have higher capital value as time passes by.

Authored by Prateek Mittal, Executive Director, Sushma Group