Deciding to buy a flat or apartment is one of the biggest decisions of your life. Buying a flat is once in a lifetime opportunity for many of us. The rising price of the flats/apartments and high rate of interest in the market makes it very difficult for buying a flat or apartment. It does take loads of thought before coming up to the final decision. Owning a flat does take a lot of investment and it is difficult to make payment upfront. So we seek for Equitable Monthly Installments (EMI). This arises one of the biggest questions in the mind that what is best Buying or Renting a flat or apartment?
Each option has its merits and demerits. One of the most common argument is that instead of paying rents you can use rent amount to pay EMIs’ and own a flat or apartment at the same time. But you should be very clear whether to buy or rent a flat or apartment. The following points can help you in making your decision.
Merits for Buying a flat
Capital
appreciation:
Real estate investments
do appreciate
over a period of time.
Tax advantage: Owning
an asset, benefit from Income tax. Under sec 80C the principal repayment of
your home loan is eligible for deduction.
Rental income: If
the flat or apartment is not occupied it can be
rent out.
Rents: You
will not
face an increase in rentals.
Refurbish:Can renovate or make changes in the
flat
accordingly without having any
constraint like you have in a rented house.
Merits for
Renting a flat
Flexibility: In
the period of making your career it often happens that you
need to change your job very hastily that
may lead to the change of city. So until and unless you decide to settle
down owning a flat does not make sense. Because this will decrease the
flexibility in moving.
Rent lower that EMI:Renting
is much cheaper than making the down payment.
Down payment is approximately 15-20% of the property value.
Expenditure on maintenance: House requires
regular maintenance
and it is the responsibility of the
owner to maintain it. The tenant is only responsible for minor
maintenance. Homeowner has
to pay property tax. Also, while buying owner has to pay registration fees,
stamp duty etc.
Both buying and renting has their own
merits. But owning a flat would be a better choice than
renting a flat.
Rentals may seem cheaper than EMI in
the short run but in the long run, it is much higher than owning a house.
Rental cost can’t
be recovered
A homeowner
can always mortgage a property but
a tenant can’t mortgage a rental property.
A tenant has to
move out of a rented flat, as per the owner’s demand.
If you are looking to buy flats in Lucknow, trust Paarth Infrabuild. With some of the best residential projects in the city and a legacy of trust and transparency, they will be an ideal support to help fulfil your dream of a beautiful home.
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.
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.
The real estate
market in India is going through an interesting phase. While on one hand, the
reducing home loan interest rates and stable prices are attracting new home
seekers, the current home owners are looking to upgrade on the other. The mid
income segment housing space is heating up and the data suggests that there is
a fast increasing trend in enquiries.
The data for
different towns and projects in India shows, that over the years 2 BHK homes were most
preferred by new buyers everywhere. This also resulted in a skewed planning by
developers, which favoured a higher percentage of homes to be constructed as 2
BHK and very few as 3 BHKs. However, with improving income levels and
increasing lifestyle demands, a certain shift towards 3 BHK apartments is being
observed. These 3 BHKs are also offered in some cases as 2BHK+study
configuration, making these more affordable, while providing that extra room that
can be used as needed.
If we look at
the evolution of this demand, we can find a few strands of it in the way the
society is growing. As the nuclear families have become more common and a
typical family has 4 members, including 2 kids, the requirements of 3 rooms
beyond the living room is a basic requirement for a typical middle class family
in cities. It is no more an acceptable trend to accommodate guests in the main
bed room or in some temporary sleeping area. The kids rooms are also designed
in a way that they can’t be used for guests, therefore the need for a third
bedroom is felt by most mid-income families.
Another reason,
why this trend for 3
BHKs is increasing is the affordability. The incomes have increased, while
the prices have not moved up for homes over last 3-4 years. With interests on
home loans at the lowest ever levels, suddenly the same EMI can help buy a
bigger apartment. There are instances across India, where a builder has also
helped the existing buyers waiting for possession, upgraded to a larger unit
without changing the financial impact to the customer, using a decrease in interest
cost of nearly 2-2.5%, to cover for the additional unit cost. That has also
been welcomed by buyers.
A huge jump in 3 BHK homes in
non-metro towns, like Lucknow is also observed due to the offered price point.
A 3 BHK home in
Lucknow can be bought for 60-80 lac, a sweet price point for most families. The
other reason which has apparently pushed more people towards a larger unit is
the impact of work from home employees. With pandemic starting a new preference
both for employees and employers, where work from home is quite acceptable, the
need for larger homes is felt more than ever. The extra room which can be used
as a temporary office setup, can also be used as a guest room, when needed.
Paarth Infrabuild offers beautiful and well-designed
3 BHK homes in
different projects in Lucknow at prices which are attractive for md-income
families.
Every home, even if constructed with the same
design, feel different. This difference comes in due to the ways one decorates
or maintains his home. No wonder, the home reflects the owner’s personality in
more ways than one. The design of your home can be an expression of yourself and you build a
story through the colours and styles that you choose. Your home is your haven,
so when it comes down to it, it should reflect the people who live in them.
There are many ways it happens. Let’s look at these, which can bring you closer
to the vibes of your home.
Lifestyle
If you are someone who likes to be organized in life, then the chances are that your house will be clean and spacious, and there won’t be a pile of clutter in sight. Homes with lots of storage and simple designs reflect those who are logical and calm, and like to have things planned out.
Accessories
For those
who love the outdoors, homes will be full of plants and flowers, with a garden
bursting at the seams. It is important to make sure your home reflects your lifestyle,
as how you feel in your day to day life should be the same when you’re in your
home.
There are many different ways that
personality can be reflected through the accessories around your home. You may
be a fairly quiet person, but the yellow cushions on your sofa or the floral
tablecloth you choose in your kitchen could reflect your positive outlook in
life.
The pictures you have on your walls or the
designs you choose for your curtains could also reflect your love of animals,
without actually taking over the house. It’s nice to inject your personality
into all the different accessories around your home and garden.
Experiences
A great way to find out about someone is to learn about his or her experiences, and often these can be seen around the home. Homeowners that spend a lot of time traveling often bring home keepsakes and trinkets that can be found in various rooms, showing the experiences that they have had in life.
The experiences you have tell a story and are
reflected in who you are and how you feel, and this is then reflected in your
home decorations. It’s great for someone to be able to walk into your home and
really feel that it represents you.
Relationships
The way you decorate your home can definitely
affect the dynamics of any relationships you have in the house. Think about all
the different people who live with you and how their personality could also be
reflected in the way your home is decorated.
If you have kids your home may have some
smaller pieces of furniture or rooms with brighter walls. If you live with your
other half, you may choose colours that reflect love and romance, turning your
house into a warm and cosy home to share together.
Paarth Infrabuild offers homes, which one can customize to a great extent basis his personality and lifestyle choices. There are homes of different sizes and designed differently, creating communities around these choices the customers make.
Your home is one of your biggest purchase. A proper
budget has to be planned to know how much money will be left each month to meet
your expenses, after accounting for home loan EMIs. It is therefore, very
important to look at your past savings for the purpose and estimate how your
future earnings are expected to move. It may be simpler for a salaried person,
though may involve some serious work for a business owner or a self employed
professional. One should also account for any future expenses that can be
accounted for now, like children’s educational expense etc.
Step 2 : Assess Family
requirements
Remember, you are buying a home
to ensure that your family enjoys living in it. Different members in the family
can have different interests and expectations from new home. It is critical to
understand their requirements before you set out on home search. Your family
size will help you determine the number of rooms that you need. You may need
extra room, in case, a family member is a professional or work from home
executive. Older parents, similarly may need easily accessible open space as
well as medical facilities nearby. All these along with future needs should be
considered while planning to buy your dream home.
Step 3 : Location
It is essential to decide on a few areas where you want
to buy a home. It can depend on location of kid’s school or your office. There
may be other specific considerations for the family with reference to location
and all of these should be brought in, before filtering the preferred
locations. Take a good look at the location and the locality by visiting
shortlisted areas at different times of the day. It is preferable to choose a
developing area, adjacent to the prime business district of your city so that
the price is not that high. Location will also have a large impact on the
resale value of your home. Choose wisely to ensure your home is a wealth
creator for you in future.
Step 4 : Rental rates in the area
The rental rates in an area are a good proxy to
understand how people in general perceive an area for living. Since these rates
are decided by people based on the amenities in the locality, and the general
advantages the locality offers, compared to other locations, it can be a good
comparison for several shortlisted locations. Typically a project with higher
rentals will be closer to work areas and required amenities like schools and
hospitals.
Step 5 : Resale Value
Resale Value is an important thing to consider before you
plan to invest or buy a property. Property buyers generally don’t consider this
point, when they buy. They make the mistake of focusing solely on a prime
locality or the budget of the property. If you choose the wrong property or
location, it is possible that your future sales price will always be less than
the other homes around it. It is important to look at your home also as a
wealth multiplier over a period of time, as at some point of time, you may plan
to sell it and buy a new house.
Step 6 : Loan eligibility
Home loan eligibility depends upon the repayment
capacity, income, existing loans or debts and age of the loan applicant. The
lending company or banks provide online services such as home loan eligibility
calculator or pre-approval of loan. These will help calculate loan eligibility
of the home loan borrower and therefore help in deciding the budget for your
purchase. The maximum loan that can be sanctioned varies with the banks and the
eligibility criteria may vary according to the bank or RBI regulations. It is
also worthwhile to check the documents that will be needed for availing a home
loan and the interest rates offered by different banks. Although, now most of
the prominent developers have a facilitation cell for home loans.
Step 7 : Stamp Duty & Registration Fee
This is an important expense or tax, much like the sales
tax and income tax that are collected by the Government. When planning your
budget for property buying and deciding to buy a property, you need to know the
rate and charges applicable in your city. If you want to know the market value
of your property and the stamp duty amount on it, you need to contact the Ready
Reckoner to locate your valuation zone and sub-zone. These details are
available online as well as the builder team can guide you on it.
Step 8 : Additional Costs
Even if this isn’t your first time home buying, you
will want to get help from a team of professionals. Fees or service charge by
real estate agents, lenders or mortgage brokers, home inspector, land surveyor,
lawyer or notary etc should be considered. Find out how much is the maintenance
charge. Will car parking be provided and do you have to pay extra for it. If
your previous owner did not have a vehicle, speak to the secretary of the
society and ask for a parking lot. Also, you should consider getting your home
insured, which will also have a cost.
Step 9 : Developer credentials
Different developers have varying
motivation behind a project development. There are some developers, who have
multiple projects in the city or elsewhere and therefore, they want to give a
lasting value to the customers, expecting to earn a goodwill. At the same time,
there are some whose only interest is in making quick money. It is, therefore,
important to do a thorough check on the developer before you sign on the dotted
line.
Step 10 : Approvals
There have been multiple
instances when developers launched a project without getting all the approvals.
Though, with RERA, the instances of the same have reduced but there are still
some people who try to play on customer’s ignorance. It is important to check
all the necessary approvals – like RERA approval. You may visit RERA website to
get complete details as shared by a developer with the authorities and then
cross check the details given by developer representative with these.
If you take care of these steps,
your home buying experience will be smooth and you will enjoy long term
happiness. The process may take some time, but when making an important
investment decisions, it is worthwhile to spend this time.
If you are looking to buy a property in Lucknow,
trust Paarth Infrabuild. With some
of the best residential
projects in the city and a legacy of trust and transparency, they will be
an ideal support to help fulfil your dream of a beautiful home.
Modern life is busy and full of stress.
With the advent of web and mobile telephony, it has become extremely difficult
to keep our personal and office time completely separate. The increasing globalization
in every job is also overlapping time zones and is bringing a new dimension of
stress. Thankfully the town planning has kept pace and ensured that there are
separate zones of actions for different kind of activities. Paarth Republic
township on Lucknow Kanpur highway has used these concepts of planning to make
life for its residents peaceful and enjoyable. This is also the largest
township on this side of town, which brings its own unique advantages.
Let’s first understand as to what is meant
by a planned township. A planned township is any community that was carefully
planned from its inception and is typically constructed on previously
undeveloped land. This contrasts with settlements that evolve in a more ad
hoc and organic fashion. We have all seen the chaotic life in unplanned and
organically developed residential clusters of Lucknow. Places like Alambagh or
Krishnanagar are an example of this life – with no plans and regulation, one
can see a commercial development next to a residential one without any concern
for privacy of residents. A planned township is an antithesis to this. There
are separate zones for residential,
commercial and recreational
activities. This ensures providing all the facilities without compromising
one’s privacy.
The concept of town panning is as old as
civilization. However, most parts of Indian cities emerged from expansion of
old villages or towns. This resulted in haphazard development. However, some of
the cities like Chandigarh, Lutyens’ delhi, Noida have been planned
developments with clearly marked zones for different type of activities and a
planned infrastructure. However, cities like Lucknow have been deprived of
these advantages. Some developments of this kind have come up near Gomti nagar,
however on Kanpur road, Paarth
Republic is the only development that uses the modern concepts of town
planning to ensure it is a premier most township not only of this area but in
entire Lucknow.
But what are the advantages of a planned township
living. A township living ensures that all the basic requirements of a peaceful
and happy life are made available in a fashion that protects individual choices
of all residents while offering them advantages of community living. The
residents, therefore, don’t have to worry about basic requirements of living.
There are markets inside the township to meet everyday requirements of
provisions and medical facilities to take care of any eventuality. A clear
demarcation of each residential unit and written rules about what modification
are possible, make sure that there are no unnecessary disputes among
neighbours. Clearly planned and marked parking areas ensure that there is
sufficient space for parking and avoids any disputes which is a huge trouble in
city areas now a days. The areas of recreation facilities and clubs etc are
created a bit off from the main residential areas ensuring no disturbance to
sleep of people living here. All this goes on to make life happy and
satisfying.
Indians have been flocking to buy houses in
large planned townships, especially in post pandemic era. Paarth Republic is
seeing a continued traction for its offering and has limited units left to be
sold.
Lucknow has been growing fast over last
decade and has been a leading non-metro town when it comes to new developments.
While infrastructural developments are happening across the city, the progress
in Lucknow-Kanpur road area is quite rapid. And it is quite appropriate
considering that this road connects the two most important cities of UP and it
has the fastest growing airport east of Delhi airport. The metro connectivity to
other parts of city from here ensures a quick and efficient transport system.
Till a few years back, Kanpur road area was
not considered to be appropriate for luxury residences. The city was
gravitating towards Gomti Nagar and further towards Raebareli road. Amausi
airport had not received any expansion for years and connectivity from this
area to rest of the places in the city could at best be described as patchy.
The ongoing metro work was a nuisance and it was not easy to visualize the
advantages of this network in future. But as Lucknow started growing and
airfares in India started coming down, people took to air travel in droves. The
airport was expanded and international flights were started. Just to understand
it, let’s look at some of the statistics. The footfall at Amausi airport
increased from 23 lacs in 2013-14 to 47 lacs in 2017-18. Also, as the metro
started operations, people realized the efficient mode of transport it provided
and suddenly this whole area near the airport was in focus. There is an ongoing
project of an elevated road connecting Shaheed path to airport.
As the metro network keeps getting
expanded, new infrastructure developments started taking place in the area. A
new integrated terminal building at the airport was started with an outlay of
roughly 1400 cr. And is progressing fast. The Lucknow- Kanpur highway was also
upgraded and is now a congestion free road, further paving way for making
driving smooth here. Another big infrastructure project that has been announced
in this area in Sep’2020 is the setting up of India’s largest start-up
incubator center opposite Amausi airport. This is planned to be a 2.5 lac sq ft
facility which will be set up by Uttar Pradesh electronics corporation and
probably be built and operated by Software Technology parks of India (STPI), a
central government agency.
As expected, this area is witnessing a rush
of private projects also as government projects are reaching their completion.
There are new industries being set up and a number of residential projects are
being launched. As Amausi airport expands and new integrated terminal starts
operation, this area will also become a large transit center for travelers from
across Uttar Pradesh. Considering that, a host of new hospitality projects are
being developed in the area, which will improve the traction even further.
Though most of the residential
projects in the area are very small in their scope and are not well
planned, the Paarth
republic township is sure to meet the expectations of new age investors and
renters. As a result, the prices are moving up in this community as rental
yields are also expected to move north.
In India, owning a
home is a dream most people savour through their life. There is only a small
percentage of people who get to own their home. Most of us save our lifetime
income for buying a home of our dreams. But before buying property lots of questions arise in buyer’s mind. Are we investing in the right location? Will the builder deliver what is promised? Is this builder an honest builder? What clauses should
be there in a house buying agreement? To solve this problem the government has
introduced RERA for home buyers. Let’s understand in detail as to what is RERA
and what does it entail.
Before this regulatory
act, some unscrupulous builders and developers of India had their own rules and
regulations. The buyers were given almost no choice by such developers. While
the buyer was paying for the property and this would be the biggest asset most
of them ever invested in their lifetime, a lot of builders avoided sharing the
important details with the customer. That is why Real Estate Regulatory Act
(RERA) was introduced, to protect buyers’ rights on one side
and builders’ payments on the other.
What is RERA
The Real Estate
Regulatory Authority (RERA) is an act introduced by the Indian government in
2016. The main objective of this Act is to protect property buyers’ right and help them reach out to a regulatory body in case of any issue
with the builder. The act also ensures that property buyers understand their
responsibilities of payments and they protect a developer’s rights to ensure
there are minimal disputes.
RERA has put forward
clear guidelines regarding constructing and developing the real estate. This has
brought a lot of transparency between buyers and developers and established a
way forward in case of a dispute. As there are uniform rules created, it
becomes easy for a buyer to compare different projects and understand detailed
cost structure without the bomb of hidden charges exploding on him later on.
Importance of RERA
Indian real estate
needed a regulation like RERA to add confidence in India’s Real estate sector. RE is a leading part
of the economy and contributes to almost 15% of GDP. The act ever since
initiated, has resulted in several changes in construction sector by bringing
in transparency at every step and forcing all parties to fulfil their duties.
The act has brought
clarity between property buyers and property developers thereby building the
necessary trust between sellers and buyers. It has established state
authorities in every state and has tried to do away with anomalies or
malpractices in the sector.
Now RERA is helping
home buyers in timely delivery of their real estate project. That is a great
relief for homebuyers across India. It also is a great news for developers like
Paarth Infrabuild, who have always
kept the interests of customers at the center.
RERA has become a
rule playbook for both seller and buyer of real estate that include the
intermediaries also. The few provisions of act have made the following
beneficial changes to RE selling:
Uniform size definition
There is no denying
the importance of the size of a unit when buying a property. Before RERA, every
builder had his own way of defining unit size and was difficult for a buyer to
understand the implication of various components shown for a unit size.
However, with RERA, a standardised way of defining unit size has been
propounded making the process transparent and trustworthy.
2. Penal interest
rates
In RERA regime, in case of
default in payment by the buyer or default in completion of the project by the
builder, the rate of interest to be paid shall be the same for both parties.
Earlier it was very
different. In case the builder used to delay the possession of property – the
interest paid by builder to the home buyer was less whereas in case the buyer
defaulted – the interest to be paid by the buyer to builder was much higher.
The RERA Act has now clearly
specified that the interest rate shall be the same for both the parties, making
the process fair.
3. Fiscal discipline for
builder
A developer usually has
several projects which are being constructed simultaneously. Earlier there was
no restriction on builder to use funds from a project in the same project. All
that has undergone a change now. This would now not be possible as after the
introduction of RERA, the builder is liable to deposit 70% of the revenue
collected for a particular project in an escrow account. He can withdraw from
such account only on the basis of completion of project, which shall be
certified by a civil engineer, architect and a chartered accountant in
practice.
As the funds can now not be
diverted to other projects and used for other purposes – this will ensure that
the funds are used for the purpose only for which they are raised.
Pre-RERA, there have been certain
cases wherein some rogue builders raised the funds from home buyers for
constructing their homes but used the funds for buying land for the next
project leaving this project in limbo. They later became starved of funds and
were not able to complete the construction of the property.
As the funds can only be
used for the purpose for which they have been raised – this will ensure that
the funds are not diverted elsewhere and that the money is used for the purpose
for which it is raised, thereby ensuring timely completion of the property.
4. Right to information
This has been another big
change in RE sector. Retail customer often was not provided all the information
and he had no way to force the builder to share the requisite information.
However, RERA has clearly stated various information which should be provided
in writing to buyer in the agreement as well as in the advertisement.
5. Grievance redressal
Grievance redressal was
another area where buyer used to run from pillar to post to get himself heard
without a positive outcome. Now RERA has ensured the establishment of an
authority for grievance redressal in every state making life easier for a
customer.
The biggest advantage of
RERA lies in discipling a few errant builders and thereby making a level
playing field for all developers. Institutional developers like Paarth Infrabuild,
who has all its projects approved by RERA, and who have always been transparent
to customers are major beneficiary of this act along with the end customer.
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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