According to
the survey conducted by ‘IMRB International’ and LG Corporation, Lucknow is the
second happiest city of India just after Chandigarh.
Hazratganj has no electrical wires
Hazrajganj
one of the areas which is situated at the heart of Lucknow is unique in its own
way. The electrical wires are all underground which adds beautification to this
area. Really interesting fact about Lucknow.
Lucknow’s clock tower is the tallest in India
The clock tower of Lucknow which is known as
Husainabad Clock Tower is the tallest clock tower in India. It was built in
1881. This clock was built as a replica of BIGBEN clock tower of London.
Lucknow Railway Station
Lucknow
Railway Station is the place where Mahatma Gandhi met Pandit Jawaharlal Nehru
for the very first time in December 1916.
Lucknow has the longest Race-course
The
race course in the city is the longest one in India. The length of the track is
3.5 km. It was established in 1880.
Bara Imambara is the largest hall in Asia:
The construction of Bara Imambara hall was started with a sole purpose
of providing employment to the people. It took six complete years to complete
this hall. The construction of this hall was completed in the year 1791. It is
also the largest hall in Asia without any external support from wood, iron or
stone beams.
Reservoir of Crocodile and Alligator
Kukrail Garden
located in the city is said to be the largest crocodile and alligator reservoir
in the Asian continent.
That’s how you are welcomed in the capital and the largest city of Uttar Pradesh, situated on the banks of river Gomti and about 45 miles (72 km) northeast of Kanpur. Lucknow is not just a city, with a rich heritage to its name, the city of kebabs and nawabs resonates the treasure of architecture and history, of literature and culture – in a nutshell.
The city
of Nawabs as the slogan of the city says the region has a slice of rich
colonial history to modernized museums, this artistic hub of Awadh, beautifully
brings together the opulence of a glittering past and the simplicity of a
modern city. And if you thought this is all, we have something special for you,
According
to the survey conducted by ‘IMRB International’ Lucknow is the second happiest city
in India. As of November 15, 2017, which is merely 70 days into its operations,
the Lucknow Metro has crossed the 10 lakh mark in terms of ridership.
City the Beautiful –
Old Lucknow –
Rumi Darwaza, the Mughal Gateway built in the centre of the capital divides Lucknow into ‘Old Lucknow’ which is ancient, crowded, a bit narrow, and a big food hub, wholesale jewelry lakhnavi chikan market. On the other hand and the ‘New Lucknow’ is urban and one of the most planned cities of Asia.
New Lucknow –
With sprawling shopping malls, parks, Hi-rise buildings, international cricket stadiums, wider roads, planned architecture make the city a true cosmopolitan with people of varied cultures and areas from across the country. The most famous among these are the parks like Ambedkar Park and the Gomti Riverfront Park, both ideal places truly give the sense of calmness within the chaos. The families, tourists, and locals can daily be seen taking a walk or admiring the built of the structures during the evenings or even late nights.
For the shopping frenzy, you have Hazratganj, which is the mouth-watering space for shopping, food, and some unique experiences like – you don’t see electric cables hanging around that enhances the beauty of the area like never before and more so if you have an eye for detail, you see most of the shop’s names, and signage marked in black and white only. Right from the international wizards like Nike, Pepsi, Gucci to the local shops, all of them are marked in black and white signage throughout the market. For foodies, the same place offers its world-famous ‘gol gappe’, ‘chaat’ and ‘kulfi’ eateries, posh Mughlai restaurants, and various shopping complexes. All the buildings in Hazratganj have a distinct Victorian architecture, and you can shop for literally anything – starting from inexpensive accessories and trinkets to high-end clothes, shoes, and jewelry.
The people of Lucknow are known for their courtly manners and endearing ‘Pehle aap‘ (you first) culture, which always leaves behind a smile on the faces of its visitors.
Education
Lucknow is the home
to a number of the various prestigious institute that includes
Indian Institute of Management Lucknow (IIM-L),
Indian Institute of Technology Lucknow (IIT-L),
Institute of Hotel Management Lucknow (IHM-L),
Indian Institute of Toxicology Research,
National Botanical Research Institute (NBRI),
The University of
Lucknow and many more. You hardly find so many important institutions in a
single place and that is the beauty of the city. Let it be higher studies or
the school level, Lucknow offers the best of the best and hence if you are
living in the city you don’t migrate to other places and save a lot of cost and
family time.
Sports
Lucknow is the
Headquarter for the Badminton Association of India. Junior level Badminton
players receive their training in Lucknow after which they are sent to
Bangalore. Also, The Lucknow Race Course in Lucknow Cantonment is spread over
70.22 acres (28.42 ha); the course’s 3.2 km(2.0 mi) long race track is the
longest in India a.
Not only this, but Lucknow
also hosts the International standard Cricket stadium, Various cricket
academies, Tennis academies, Major Dhyanchand Hockey Stadium to name a few.
Climate
Being a landlocked
city and quite away both from the Sea and the Mountains, Lucknow runs in
extreme weather conditions. All the variants of the weather can easily be
witnessed in Lucknow throughout the year.
Winters in Lucknow – From November to March is the winter season and is the best season to visit the city. With the minimum temperature going as low as 2 degrees one can enjoy the fog and dim sunlight during the days. Summers in Lucknow – April, Ma,y and June dry, hot and windy with the mercury soaring to as much as 45 degrees, the city reels under extremely humid conditions during the Monsoon rains during Jul August, and September.
If you planning to buy an apartment or flats in Lucknow? Rush to the projects by Paarth Infrabuild, which are constructed keeping in mind the different requirements of the buyers. Paarth Infrabuild offers luxurious and comfortable household spaces which will match exactly with your dream house. There are four major projects by Paarth Infrabuild i.e. Paarth Republic, Paarth Aadyant, Paarth Arka and Paarth NU. Each project is different and has its own unique features and all the projects are eco-friendly.
Have you ever thought that if money was
never an object you could have bought your dream house? That might be a cozy
villa having a private garden as well as swimming pool or a private condo
having sea view like it is shown in James Bond movies. Thinking? You might go
out of your budget.
Everyone has an idea of their dream homes but as money as an object comes into the picture your aspirations are toned down. Most of the home-buyers when decide to convert their dream home into reality by stretching their finances they might end up denting their finances. But not anymore, affordable housing scheme helped many people to fulfill their dreams to buy their own house. The slowdown in real estate sector also lightens the burden of the buyer. A few years back rates of the property were hitting the roof but today home-buyer can a find a place to dwell for spending their life with their family.
Image Credit- Forbes
The vision of Modi government that every citizen of India has their own house by the end of the year 2022. To back this vision the government is pursuing and encouraging the builders to come up with projects that fall under affordable housing schemes. Under this scheme, the target is to make house between 10lakh to 30lakh so that lower and middle class group can afford it. Even the home loans are available at a very economical rate. This will lead to increase the quality of living standard of people.
Projects under the affordable housing schemes are launched in states Punjab, Uttar Pradesh, Rajasthan etc. and the state government is providing all the possible assistance to the builders. As per Times of India, their government has made two classifications for Middle Income Group (MIG).
MIG-I having an
income of 6-12 lakh will get loan up to 9 lakh with interest subsidy of 4% for
a tenure of 20 years. Therefore at the end of tenure, the borrower will end up
paying an interest subsidy of 2.35 lakh for 9 lakh.
MIG-II having an
income of 12-18 lakh will get loan up to 12 lakh with interest subsidy of 3%
for a tenure of 20 years. Therefore at the end of tenure, the borrower will end
up paying an interest subsidy of 2.30 lakh for 12 lakh.
The Housing and Urban Development
Corporation (HUDCO) and National Housing Bank (NHB) have been acknowledged
as central nodal agencies to channelize this subsidy to the lending
institutions, including banks and financial institutions. Therefore, small
banks, non-banking finance companies and micro-finance institutions will be
recognized as primary lending institutions under the scheme.
Additional loans are also available at a non-subsidies rate. Under the scheme, widows, single working women, persons belonging to SC/ST, OBC, differently abled and trans-genders will be given preference.
As soon as we think about the Capital city of Uttar Pradesh, Lucknow emerges as the city of Nawabs, its lazy yet elegant persona, the Imambadas, Rumi Darwaza, the ever inviting Bhool bhulaiya, or the mouth-watering food. But that’s not all, Lucknow is very quickly becoming the hub of Real estate hub for the region. Let it be the government policies or the urban real estate development in the vicinity, Lucknow is the finest example of urbanization of India. In Lucknow there is a best real estate company named “Paarth Infrabuild” offers luxury flats in Lucknow at affordable price. There are many reason due to which we can say Lucknow is a Real Estate Hub.
Location Matters –
Lucknow is
very centrally located within the boundaries of Uttar Pradesh and enjoys
excellent connectivity with all the major cities when it comes to the Uttar
Pradesh region. Right from neighboring Kanpur, Agra, Jhansi, Varanasi,
Prayagraj to the National Capital New Delhi, Noida, Ghaziabad, and the city is
very well connected by all the possible modes of travel like Air, Rail, and Bus.
Outer ring road completion will connect the city with 104 villages, as many as
6 state highways, and 5 National highways.
The Real Estate Growth –
Also
within the city, Lucknow Metro has opened the flood gates of the Real estate
sector to boom. Locations like Shaheed Path, Gomti Nagar, Sarojini Nagar are
not the OUTER part of the cities anymore, you can very easily see skyscrapers
mushrooming all around. With the Malls, Newly constructed Hi-rise Apartments,
Schools, and Multi-Specialty hospitals in the close vicinity, Lucknow is
emerged to be the next cosmopolitan city of North India
Why the Hub
Being an old city with narrow roads, cluttered colonies, busy Market streets, the new age Real estate developers have understood the requirement of living in open and bigger spaces with all the modern amenities like a Swimming pool, Kids Play Area, Clubhouses, Badminton Courts, Yoga, and meditation Area, and jellying perfectly with government’s KHELO India campaign mostly all of the real estate developers are providing Cricket stadiums with academies, Football or Basket Ball courts, and state of the art indoor games facilities and no wonder Lucknow is already providing some world-class athletes. On the commercial front, the new age office spaces and co-working spaces are also cropping up in the downtown areas of the city and the best part is they are well connected with the so-called old and the new city.
Latest Trends
The trends especially those in the Real estate industry indicate that the individual let it be a high-end investor or the mid-range buyer is looking beyond metropolises that offer a lifestyle. Where they can not only live a carefree life but also have all the facilities that are required to be in the nearby areas. The high rise is not only a trademark of a Metropolitan city this has created an untamed opportunity for the real estate developers to take advantage of the untapped consumer demand that is increasing day by day.
Growth and Opportunities in the Real Estate of Lucknow
The real estate industry in Lucknow has emerged in all sectors especially in the residential and commercial sectors. With the growing GDP of the countrymen and the Lucknawis, the cost of real estate lands as well as the high-rise apartments with the Commercial spaces are yielding clear results. The rapid growth of the IT sector specifically has attracted a lot of crowds from the various parts of Uttar Pradesh. According to the Master plan of 2021 197 perimeter villages are included in the proposal.
A Contributor
“Lucknow
is playing a pivotal role in making the state of Uttar Pradesh march towards
its goal of becoming a $1-trillion economy. The city of Lucknow alone
contributes to more than 3.85% of the state’s GDP and is already the hotbed for
real estate players from all around the country. The MAKE IN INDIA initiative
of the government also paved its way to attract the major manufacturing players
to set up their units and the existing ease of doing business makes the area even
more sort after places.
Facilities
in Lucknow
No wonder Lucknow
is present in the list of top Smart Cities in India, and no guesses for the
answers to the factors that make it one of the top gainers in the list.
Transport – The presence of
Metro has just added one more feather in the decorated transport facilities of
the city and connectivity of Bus, Rail and Air already gives Lucknow an edge
over the rest
Water supply – one of the most
essential aspects to make a city-run, the water supply in the city has seen a
lot of improvement, thanks to the government policies and the NGOs that are
working towards the betterment of Lucknow.
Educational institutions – One can count big when it comes
to the education in Lucknow, IIM Lucknow, IHM Lucknow, Citi Montessori school Babasaheb Bhimrao Ambedkar
University, Amity
University, Sanjay Gandhi Post Graduate Institute of Medical Sciences (SGPGIMS),
Central
Drug Research Institute, Central Institute of Medicinal and Aromatic
Plants, Medanta, Sahara Hospital, Central Institute of Plastics Engineering and
Technology are merely some names that itself shows the class.
Top
Residential Areas in Lucknow
Past Decade has seen a lot many cities where the real estate sector is growing have witnessed extraordinary expansion in the infrastructural and overall facilities. Lucknow at the same time is experiencing, expanding, and upgrading its infrastructure to accommodate the people not only from the city but from the nearby villages and cities. Lucknow offers something for everyone, right from the local jhuggis to the expansive Villas, farmhouses, and the High-rise apartments Lucknow witnesses an array of residential and commercial developments. To name a few we have some areas that will automatically take us to the scrumptious cuisines or the Real estate developments. However, if you are not from Lucknow just have a look at the world-famous places like Hazratganj, Gomti Nagar, Aliganj, Janki Puram, Bhootnath, Alambagh, Shaheed Path, Mahanagar, Indiranagar, Patrakar Puram, Vibhuti Khand, Faizabad Road, Kanpur road to name a few.
I had been looking out for a flat in
Lucknow for a few days. I did see a number of condominiums in Gomti nagar
extension, Gomti nagar, Raebareilly road and other good areas. But nothing
really appealed to me. And then, my broker took me to Paarth Aadyant, located
in Gomti
nagar extension area, and afterwards I didn’t need to visit any other
place. Let me tell you everything that you need to know about this project.
The project is located at a kissing distance
from the most modern mall in Lucknow, Phoenix Palassio. That renders this whole
area a feeling of happiness and celebration. The best part is that despite
being so close, the unruly traffic around the mall doesn’t affect the entrance
to Paarth Aadyant.
If that is not enough for a great location, the other attraction nearby will
make you drool. Yes, the only international cricket stadium of Lucknow, Atal
Behari Vajpayee cricket stadium is close by. In fact, so close, that you could
enjoy a day and night match at this stadium from your flat’s balcony.
However, what I was really keen to have in
the vicinity, was good medical facilities. I guess in the current state of our
minds, all of us consider this as an important criteria. Medanta hospital,
equipped with the best health care facilities available in Lucknow is at a
stone’s throw. But what really clinched the deal in the favour of Paarth
Aadyant is the fact that this area is so calm and quiet despite so much life
just outside. The entry and exit to Shaheed path is easy, which makes its
connection with any part of the city, including the airport and the railway
station, a quick and comfortable journey. Yes, if you have experienced the
rough roads in Lucknow elsewhere, you can’t agree more with me.
I was also told that the best schools of
the town, City Montessori school and Delhi Public School are located in close
vicinity. And I could also see the building of head office of Dial 112 and UP
Police headquarters. Therefore, I will not have to worry about studies of my
kids and also the area is highly safe and secure. Presence of WalMart store and
other proposed infrastructure projects will continue to add interesting
features to the area.
Now is the time to take you to the inside of this project. Trust me, if the locality made you drool like I did, the inside of the project will make you go green with happiness. Yes, Green is the colour which you see all around you in the form of landscaped gardens in the project. With a high green area to construction ratio, the seven towers in the project look like sprouting out from ground, surrounded by foliage. The entry was grand with three tier security and a safe perimeter offered a sense of security, I could trust.
As we entered the complex, the scenes of
happy kids running around and playing in the kids area was enchanting and
watching old people sitting on the garden benches enjoying their laughs and
discussion was very satisfying. Another concern ticked off, I now don’t have to
worry about my old father feeling lonely at home. Some kids were taking a
karate coaching, while some other were riding their bicycle and all this was
making the entire atmosphere full of unbounded joy. It all looked like too good
to believe. Frankly, if I was not there myself and someone had explained it to
me, I would not have believed it. So I won’t blame you if you are not being
able to trust this completely. The only solution – Go and check for yourself
and come back as mesmerized as I am.
I passed a few residents on my way to the
sales office and spoke to a couple of them. They looked happy with their
investment decision as they have experienced good appreciation of their
investment and finding that the developer has done a very good job in providing
quality and services. I then, visited the sample flat. It was a 3BHK flat ( I
am told that all the 2 BHK flats are already sold, too bad!!). The bedrooms
were spacious and provided enough privacy from the living area. The attached
toilets were well done up and looked quite contemporary.
The living area opens into a large balcony,
so my dream of creating a terrace garden will also be fulfilled here. I was
thrilled as I glanced down and felt the merging of my terrace garden with the
landscaped gardens below. The best part was that this balcony was not
overlooking into any other balcony. At this stage, my broker reminded me that
the project covers an area of 14 acres and has only 536 flats. Which meant that
per flat land coverage is the most in this project compared to any other
project nearby. No wonder, I always found the other projects from some of the
big names too cramped and claustrophobic. Thank God for small mercies, there is
a place possible to own with good breathing space.
Oh, but before I come out, I must tell you
about the kitchen. The kitchen has been designed very efficiently. In addition
to good use of space available, the service balcony and large window make it
awesome. There is good light in the kitchen and it is well connected to the
dining area. The servant room was not cramped for space and had opening
outside, ensuring safety for occupants.
The features of the club were also shared
with me. It is going to be one of the best clubs in an apartment complex when
completed. A large Swimming pool with a gym and area for other sports, makes it
perfect to enjoy the leisure time. The location of the club is excellent and I
am already planning to have a duel at badminton with my brother here. The amphitheater,
the basketball court, the sitting areas with pergola and beautiful jogging
track left me completely speechless. Guess, if I had asked for anything more
today, I would have got it.
I came out highly impressed. The developer
team also told me about the wonderful legacy of the developer and the fact that
they have multiple projects across Lucknow reaffirmed my faith in it. I have
now already booked my home here, when are you doing the same?
If you are looking to buy a home in Lucknow this new
year, you must read this piece before you make a final decision. Why? We have
looked at various localities of Lucknow and are then making an informed
suggestion to benefit you both in short as well as long term. You need this
advice because a home buy will probably be the biggest purchase you will make
in your life.
Lucknow is one of the fastest growing cities in India
and has increasingly emerged as the preferred choice for buying a home for
anyone in eastern and central parts of Uttar Pradesh. A well laid out basic
infrastructure, already functional metro rail, an international airport and
excellent network of roads provide the basic wherewithal for a tension free
life here. Added to this is a well – educated and one of the most civilized
population groups in India. This is also the seat of political, judicial and
executive power of the largest Indian state of Uttar Pradesh. With a stable
government at the hub, the opportunities galore in this futuristic town.
When one looks at Lucknow, the city has grown in all
the directions in last few years. There are developments in Gomti Nagar
extension, Raebareilly road, Sultanpur road, Hardoi road and Kanpur road.
However, if you ask anyone in Lucknow his preference for buying a new home, the
answer in all likelihood will be Gomti Nagar extension or Shaheed path (which
is the official name), unless there are budget constraints, one is facing. The
rental values for flats in this area are easily 1.5 times a similar apartment
in the second best residential area. Despite a relatively new development, the
locality is being considered even by old Lucknowites to move in and stay.
The question is then, why this rush to buy homes in
this area. To get the answer, we should look at multiple factors. Gomti Nagar
extension has an excellent connectivity to the airport and the railway station
through Shaheed path. The second thing one looks at is the amenities in the
area. Whether you look for entertainment facilities or shopping area, there is
no close rival to this location. The largest and the newest mall, the phoenix
city mall is located here, which has got a gaming area and a multiplex. There
are multiple facilities for sports with an international cricket stadium, Ekana
cricket stadium located here. The area is also blessed with many schools
affiliated to different boards, where students from all over Lucknow prefer to
study. The medical facilities in the vicinity are the best in the town.
Another reason why this locality emerges as the most
preferred destination for home buyers, is the most modern apartment complexes
on offer by the best builders in the town. Whether it is large north India
based developers like Ansal or Omaxe or one of the best developer of UP, Paarth Infrabuild, the properties on
offer here have the most modern amenities.
Paarth Infrabuild
offers the best located projects Aadyant and Arka in this cluster. These
projects are situated adjacent to Phoenix city mall and the cricket stadium and
have the best amenities on offer.
In last decade, the age of home buyers has gone down and
number of home buyers has increased substantially. Taking advantage of the same
boom, the developers have started to offer the customers with different
types of housing projects, for their ease and to cater to their interest.
However, there are some fly-by-night developers who have
entered the trade to make some quick money. They would typically release
attractive advertisements and offers to lure customers. There are also some
developers in every market who have delivered good projects in past but are
facing huge financial crisis. Therefore, a critical part of a home-purchasing decision
is background check on developer. So what should one look out for:
Choose a developer who has delivered some projects in the
city earlier
Check out for a financially strong builder. You can do a
google search on the developer to see if he has defaulted on some payment etc
or taking huge loans. It’s better to avoid such a developer even if he meets
the criteria 1.
While it might sound like some work, a due diligence at
this stage will help you to avoid disappointments later. Some of the benefits
that one can enjoy by purchasing a home through a reputed developer:
Modern Design
A reputed developer who has multiple projects, will have
his own setup to oversee the designing and the construction process. This
ensures one gets the most state of the art design, which are functionally
useful and provide living comfort for a long time. Typically, a developer with
a quick money in mind, doesn’t create his own setup and gets contractors to do
everything. This results in compromising quality as the contractor is not
bothered about his long term reputation with the end customer.
Transparency in dealing
A reputed and large developer will have a process to take care of any concern raised by a customer, something which is very important in buying a product with deep engagement. There is a process of 3-4 years during which you need help on aspects like checking progress of the project, payment reconciliation, documentation etc. Small developers don’t have CRM department to handle these queries and ever changing sales people are of no help in such situations. Also, with a large developer, everything will be recorded in writing or through a mail. Registration of projects with RERA also ensure a certain minimum transparency by the builder. The projects offered on individual basis by small builders in unorganized sector are not even registered with RERA and offer no specific details.
Easy accessibility of Home Loans
A reputed developer will already have a project approval
done for home loans for its customers through reputed financial institutions.
In such a case, it becomes extremely easy for a customer to get his home loan
processed. In some cases, financial institutions also offer special promotions
on home loans like subvention schemes or special interest rates for home loan on
such residential projects.
Timely Project Delivery
Good
and reputed developers ensure that they keep their commitments to the customers
and therefore use modern project management techniques to ensure customer
satisfaction.
Paarth Infrabuild is one of the most
reputed developers of Lucknow. They have multiple projects in the city and
offer best value for money to its customers with transparent offers.
Buying a home is one of the biggest decisions a family makes together.
This also has far reaching social and economic impact on family members. The
locality, the neighbors, infrastructure and what kind of home one buys, go on
to define the kind of life one would live.
There are many choices for a buyer. One can buy an apartment in a
condominium or buy a villa on an independent plot of land. For some,
Skyscrapers make their inhabitants proud and inspire awe in them. But some just
don’t like living in tall buildings with shared spaces. A few others want
to live in an Independent
villa, but can’t afford it. The high prices of land have made villas virtually out of reach of an
average Indian. The independent floors give a certain middle course that is
affordable and meets aspirations of a style-living oriented middle class
family.
An independent-floor apartment is a
residential unit with a few other flats in a low-rise independent building. The
number of units on each floor is one or two and therefore don’t have to share
the common space with many families. These buildings are generally mid –
height, offering the much needed visual relief, ensuring these are not
claustrophobic. These are also designed with ample space between different
blocks to afford a healthy flow of air and ingress of sunlight. These have
become important criteria for customers in post-pandemic world.
Buying an independent floor is clearly a lifestyle decision. This is so
because, an apartment of the same size in a high-rise will be available at
15-20% less cost. For a lot of people who go by utility of their purchase
decision, this premium over a similar sized apartment doesn’t make any sense,
but for few, it is the best decision they made. Also the flexibility of space
utilisation in independent floor is more as there are very limited common
areas. This also allows a buyer to give the space outside one’s home a
character that he wants.
However, builder floors have some drawbacks, if they are offered on a
standalone basis. Such independent floors do not have
facilities such as gymnasium, swimming pool, security and power back-up, that
all of the modern society apartments have. But if there are independent floors
on offer within a township, this is like one gets best of both worlds. An
independent floor with the sense of safety and security and the amenities
offered by a large well planned township is unparalleled in its value offer to
the buyer.
Independent floors offer a sense of space which can’t be compared with
an apartment. The privacy that this offers, also attracts buyers. The
discerning customers also like the opportunity to create the greens around
their home and less cacophonous surroundings. Another strong value that an
independent floor in a township offers is the “step in – step out” convenience.
What it means is that you could enjoy social life just by stepping out of your
home and be absolutely private the moment you step back inside.
Gardenia Residency in Paarth Republic Township on Lucknow- Kanpur road,
is attracting buyers with this unmatched combination and is one of the fastest
moving homes in Lucknow.
The debate as to which is a better investment opportunity – Real
Estate or Equity, when one is looking for high returns, is one that continues.
However, there are facts which clearly establish superiority of Real Estate
investment over equity investments. One of the most important reason in support
of it, is the lesser volatility of prices associated with RE prices. You could
not be away from the market, if you have made equity investments, while you
don’t check land prices every day and do it only when you need to sell.
Why Real Estate is a better investment than Equity
One point repeatedly put forward by Equity enthusiasts is that real estate is lumpy and illiquid. But what these people miss out is that wealth generation is not a target to be achieved in a few months or a year. It is meant to help achieve life goals over 10-15 years. Also, real estate generates supplementary cash flows in the form of rental income, which is almost always better than the dividend income one can expect from equity investments.
The nature of equity investments is such that the investor could
never predict the facts of how his investments would perform over a longer time
frame. Look at what happened in the case of a yes bank or a Reliance power.
People lost almost entire invested amounts due to wrong disclosures by
directors of these corporates. On the other hand, a real estate investment has
a material value that can be ascertained by anyone to a great degree of
certainty. This ensures that the best analyst and the worst in case of land
price will differ only by a few percentage points, while in case of equity,
this difference could be in 10s of percentage.
A certain group also propels equity investments through mutual funds
investment. Agreed, that mutual funds avoid the risk of volatility in only one
scrip, but the volatility is still much higher than Real Estate. Also, analyzed
over a long period of time, mutual funds have also not been great wealth
creators. And if they don’t serve this purpose, they lose the right to be
compared with real estate investment, which has helped people across India to
create wealth over years.
Another factor that supports real estate investments is the ability
of an individual to get funded at a highly subsidized interest rates by taking
a home loan, to buy a property. Can you get a loan to buy into equity? The fact
that one can fund the real estate investments through a loan results in taking
benefits of higher than calculated returns. If the price increase in property
has been more than the rate of interest on loan (which generally is the case),
one earns returns also on that part of investment that was done through home
loan money.
However, it is to be understood that the property should never be
used as a short-term investment tool. And one could argue in favor of an equity
investment for short term. Finally, the tax advantage offered on housing loan
both on the principal and interest amounts make the returns even sweeter and
therefore, property should always be a part of your investment portfolio.
We
are on a long road to recovery from the initial disruption created by the
pandemic. It, however, is sure that not everything will go back to how it was
pre-Covid. Somethings would have, perhaps, changed their character forever.
Future of work and home spaces
The
lockdown brought a huge change to the workplace. Work from home (WFH) became
the norm rather than exception. As per estimates from industry experts more
than 90% of 4.3 million IT workforce worked from home during lockdown. And it
seemed to have worked well, contrary to the early skepticism. The best part is
that both the employee and the employer seem to be happier with this
arrangement. While increased productivity warmed the hearts of employers,
employees enjoyed flexible working hours and savings in commute time.
Learning
from IT industry’s early moves, other industries also started to figure
out ways of getting a portion of workforce WFH without disrupting the work
ethics. Employers also saw it as an opportunity to reduce infrastructure and
administrative costs. Conferences and meetings went online, helping save
critical and expensive commute and helping organisations take swift decisions.
Also, employees could be close to families during these uncertain times,
especially when kids were home due to school closure. And there has been a vast
acceptance of these methods. Even the courts in the country, started using
video conferencing as a viable medium to do hearing.
WFH
also helped companies to tap into a pool of talent, which was not available
earlier. There were instances when employees were not willing to move places,
resulting in shortage of talent of a particular type. But with WFH becoming a
norm, this has no more remained a challenge. Also, people who left their homes,
leaving ageing parents behind, for a better life, could now shift back and be
next to their parents without affecting the work. This means very special for
women, who had to sacrifice their careers for commitments at home, suddenly
finding new opportunities.
Another
defining aspect of the pandemic induced work innovations has been a realization
by employers in industries other than IT, that remote work for a large
proportion of people in every industry is possible. As organizations tried it
under compulsion and found it working, it is expected to become a regular
feature going forward. This should result in continuation of these measures as
it works well for both the employees and employers. There was an announcement
by Deutsche bank with a plan to have almost 40% of its workforce working
from home permanently.
However,
there has been a flip side to WFH also. It is yet to be ascertained as to the
impact it will have on employee morale and loyalty over a longer period of
time. The lack of physical contact will affect the ability to group work,
ideate and solve complex challenges. This feeling of isolation could also
affect the mental well-being and may play havoc with self-confidence of
sensitive employees. As non-verbal part of the communication is not possible,
the exchange in certain situation could turn unhealthy. We can already hear
employees complaining about unstructured and long hours of work affecting their
life in multiple ways.
The
problem, in fact, extends beyond the mental well-being. The bedrooms and living
rooms are being converted to make-shift offices, which is an interference of
work life into personal space. Most of the houses in India are cramped and don’t have
appropriate office furniture, which may lead to health issues. As personal life
is intruded into, a lot of employees and their families may find this
experience awful. The ambient noise, at times, create embarrassing situations
for individuals and trying to hide from it could result in employees not being
at their normal self. Also, a large set of people have an extremely casual
approach to work, when in a relaxed setting, which may be off-putting for
colleagues in the work group.
What
then is the future of WFH in India? Basis the cost reduction it offers to
employers, there will be an increased traction to continue and enhance Work
from home. A large proportion of employees on other hand are already feeling
weariness of this change and may like to resume the normal office functioning
at the earliest possible opportunity. Multitude of work in offices, including
the IT corporations, require more than one teams and employees to work together
on a problem. Their synchronization has been critical for organizational
success. Keeping this and other factors in mind, most of the organizations may
be forced to resume operations like pre-covid times, once the scare is over.
However, a good solution can be blended office – working from home on specific
days and working at office on other days. This could be a winning solution if
proper planning with thorough understanding of each role.
This
new way of thinking will also result in paradigm shift in other industries. Real
Estate industry is the one that is expected to feel this change the most.
The market for office sales and rentals may face upheaval in short term. On the
other hand, residential developments in emerging and new locations may see an
uptick in demand. Challenges of working and managing office work from cramped
spaces will force people out of their homes in busy localities to look for new
and larger homes increasing the transactions. The noisy buildings located next
to a street as standalone building, will lose charm and large complexes away
from main road offering less noisy surroundings will gain prominence. It will
not be a surprise to see larger homes or apartments with an extra room
getting into favor, when compared with smaller homes. The locations with good
IT infrastructure will also find more buyers. Also, with travel and other
expenses down, the ability of an employee to pay the EMI amount would increase
substantially, giving him the confidence to invest in a bigger apartment.
As
the impact of WFH becomes clearer, we will know the way it impacts various
industries. One thing, however, is sure, that the housing real estate
industry is sure to see its best days. The focus will also shift from purely affordable
housing to apartment complexes located away from hustle bustle of
busy market areas. The large township projects will be in vogue and
certainly score over small city centric developments.
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