The realty sector’s contribution to GDP to rise to 10% by 2030.

The real estate sector’s contribution to the country’s GDP is set to go up from 7 per cent in 2019-2020 to 10 per cent by 2030, contributing about $ 1 trillion to the economy, according to Union Housing Secretary, Durga Shanker Mishra.

Speaking at a virtual meeting hosted by the Indian School of Business and Housing.com, he said the sector, which is the second-largest employer in the country after agriculture, now contributes about $200 billion to the economy. This is set to go up to $1 trillion and the Indian economy is projected to go up to $10 trillion.

Housing Pricing Index

Housing.com, along with ISB, launched the Housing Pricing Index (HPI), an indicator of economic activity in the real-estate sector. Developed in association Naredco, it is seen to enable homebuyers, investors, real estate developers and policymakers to track high-frequency price movement in India’s key residential markets.

“The new index will be useful for people seeking to purchase their dream home and add to ease of buying a home,” he said.

Referring to the Real Estate Regulation Act passed in 2016, he said this has already been adopted by 34 States and Union territories. The Housing Regulation Act passed by the West Bengal Government was stuck down.

Niranjan Hiranandani, President of Naredco, said the government has made housing a major thrust area andPMAY that seeks to construct 1.15 crore houses at an outlay of about ₹80,000 crore is a pointer of this focus. The sector, which has had to bear a number of disruptions – demonetisation, followed by RERA, GST implementation and the Insolvency Law – has now to contend with the Covid-induced pandemic, all causing huge stress on the sector.

“Yet from September 2020 to March 2021, the sector as witness to best phase of the real estate sector,” he said.

Ownership process

Dhruv Agarwala, CEO of Housing.com, said the housing index, developed and brought out by an extensive research team, is aimed at easing the ownership process. The big data analytics will add to the convenience.

India has the potential to leap frog in the housing sector, just as it has achieved in other sectors, said Prof Rajendra Srivastava, Dean of ISB, suggesting the need to integrate it with other sectors.

Deepa Mani, of ISB, said: “Policy makers and decision makers need accurate and timely information for effective action and interventions. At present, such information is of low granularity and often fragmented and privately held, making coordination among economic actors difficult. Indices like the HPI would be especially relevant to industry and policy makers in the face of current systematic and pervasive disruptions in the economy, notably the pandemic.”

THANE – THE UPCOMING HUB & THE NEED OF THE HOUR FOR INVESTMENT.

thane

In the last few years, with the scarcity of places in Mumbai, Thane has emerged as the next big neighbourhood in Maharashtra. It has seen considerable growth and has flourished and how!

Few years ago, Thane was considered as one of the last options to buy homes or to put it in a way those who could afford budget homes. Thane was considered as the place for factories and industries. Now in recent years, with the reduction of industries and factories, large vast lands were made available to the developers who took no time in realizing the potential investment that lied in Thane.

With the number of new and developing projects from reputed developers, Classy homes, Great infrastructure with mini complexes are the talk of the town. Thane has emerged as one of the most happening parts of the city with the introduction of Top Malls, New Projects from reputed and famous developers with excellent connectivity to major parts of Mumbai. Available ideal floor plans include 2, 3 & 4 BHKs in Thane

The past 3 years has seen a 6.2% rise in residential property in Thane and with the upcoming proposed Metro Projects the Percentage is going to rise leaps and bounds. With the rate per sq. ft. still in the affordable range, Thane offers connectivity to Western Express Highway via Ghodbunder Road, JVLR, SCLR, Mumbai Nashik Highway, NH8, Eastern Freeway and Thane- Belapur.

Furthermore, The Central Harbour Line & Thane Panvel Rail line proves to be the suitable mode for commuting for the office goers and with the upcoming proposed Metro Line it will be an added bonus to the residents of this flourishing city.

Thane already boasts of quality schools, colleges and hospitals in GB Road, Majiwada and Kasarvadavli, with Viviana mall, Eternity Mall, R-Mall, supermarkets and HyperCity already the haven for shopping and entertainment

Also known as the city of Lakes, Thane boasts of a number of attractive leisure locations like Sanjay Gandhi National Park, Masunda Lake, Upwan Lake and Kelwa beach.

Thane has become a prized location and target market for a number of renowned real estate developers like Lodha Group, Acme Group, Hiranandani are just some of the most popular names who have their projects here.

Most of these projects offer quality housing both in the affordable as well as the luxury segment that meets the perfect requirement & matches the needs of a modern homebuyer.

Real estate investment trust in 2021.

Real estate investment trust

1)What is real estate investment trust ?

A real estate investment trust is also known as (REITs) in short.REITs are basically the companies that own, operate & Finance the income-generating real estate.REITs are corporations that manage the portfolio of high-value real estate properties & mortgages. In simple words, the corporations lease the property and collect the rent thereon. The rent which is collected is further distributed to shareholders as income and dividends.

Mostly REITs offer investor an oppourtinity to possess high valure property and enable them to earn dividen income to boost their capital eventually. This way, investors can utilize the opportunity to appreciate their capital and generate income at the same time.

Both big and small investors can invest in the funds and reap the benefits accordingly. Properties included in REITs comprise data centers, infrastructure, healthcare units, apartment complexes, etc.

2)How Does a Company Qualify as a REIT?

To qualify as a REIT, a company has to meet specific requirements as mentioned below.

  • The entity must be structured as a business trust or a corporation.
  • Extends fully transferable shares
  • The is managed by a team of trustees or a board of directors.
  • Must have a minimum of 100 shareholders.
  • Less than 5 individuals should not have held 50% of its share during each taxable year.
  • Is required to pay at least 90% of the taxable income as a dividend.
  • Accrue a minimum 75% of gross income from mortgage interest or rents.
  • A maximum of 20% of the corporation’s assets comprises stock under taxable REIT subsidiaries.
  • A minimum of 75% of investment assets must be in real estate.
  • A minimum of 95% of REITs total income should be invested.

3)Types of Real Estate Investment Trust (REIT)

The types of business REITs are design to help classify them better. Also, the methods devised to sell and purchase shares further help classify REITs.

Equity

This type of REIT is among the most popular ones. Typically, it is concerned with operating and managing income-generating commercial properties. Notably, the common source of income here is rents.

Mortgage

Also known as mREITs, it is mostly involved with lending money to proprietors and extending mortgage facilities. Further, REITs tend to acquire mortgage-backed securities. Mortgage REITs also generate income in the form of interest accrued on the money they lend to proprietors.

Hybrid

This option allows investors to diversify their portfolio by parking their funds in both mortgage REITs and equity REITs. Hence, both rent and interest are the sources of income for this particular kind of REIT.

Private REITs

These trusts function as private placements, which cater to only a selective list of investors. Typically, private REITs are not traded on National Securities Exchanges and are not registered with the SEBI.

Publicly traded REITs

Typically, publicly-traded real estate investment trusts extend shares that are enlisted on the National Securities Exchange and are regulated by SEBI. Individual investors can sell and purchase such shares through the NSE.

Future of indian real estate market in 2021.

Future of indian real estate

The year 2020 brought some unexpected situations before the real estate property market. Due to the pandemic situation that hit the entire country, the market was hobbled by a cash crunch. Although the prices of properties mostly remained unaffected in big cities, the prices of houses slumped by 5% in many small cities. Due to the pandemic situation, several housing projects have stalled as there has been a huge shortage of construction workers. Plus, there was a fall in real estate investment because of a shortage of funds among investors.

For now we can see that the real estate market has started recovering itself, but it seems that the coronavirus pandemic will have long-lasting impacts. In this write-up, we have described few trends that might be really common in the year 2021 –

1) Higher Demand for Properties

In 2021, there are high chances of seeing a huge growth in job opportunities across various sectors. As a result of this, there will be an increase in the migration to cities. Therefore, rental homes and ready-to-shift properties will have a higher demand. The real estate builders will come up with new township projects. With the development of new township projects, the cities will grow wider the real estate infrastructure will continue to grow faster. The improved infrastructure and road connectivity will also suggest that there will be a higher standard of living.

2) Reduced Home Prices

In 2021, India might as well witness an increase in construction activities. With more under-construction and ready-to-move houses available for sale, the real estate developers will face the challenge of selling their properties at the right time. Therefore, they will have to quote their flats and houses at competitive rates. This suggests with more supply, the prices of real estate properties may go through a low period.

3) Increased Real Estate Investment

In 2020, many big investors found that real estate investment is the best in long run. The share market crash has changed everyone’s mindset. The good news is that the year 2021 will offer numerous investment opportunities. Right from low-cost studio apartments to luxurious bungalows and penthouses, investors can easily choose a property that will work well with their investment plan. Investing in ready-to-shift properties will provide a huge opportunity for earning rental income.

4) Rise in Emerging Micro-Markets

In 2021, many small cities will grab attention from real estate investors. Cities like Surat and Halol in Gujarat as well as Ajmer and Kota in Rajasthan will witness huge demand for residential homes. As a result of this, the income of people living in these cities will increase. Moreover, there will be a huge development in infrastructure.

5) Increase in real-estate sales

By the middle of 2021 there will be growth in real estate sales. The buyers will mostly purchase affordable houses. But the demand for luxury and high-end properties will also increase. Moreover, there will be an increased demand for theme-based real estate projects, such as comfort homes, kid-centric homes, and retirement homes. When it comes to choosing the amenities, buyers will mostly prefer homes where they can maintain social distancing while leading a comfortable lifestyle.

7 Tip & Tricks to make a home look bigger

I am quite familiar with both the charm and challenges of small spaces. When done well, they are cosy, comfortable and satisfying.

As a former Mumbaikar, and having stayed in different parts of Mumbai, I feel like I can shed a lot of light on this topic.

The key to an enjoyable small-space living might be easier than one would think. All it takes is a little extra effort and tricking the eye into perceiving more space with three major parameters: scale, light, and movement.

1. Scale it down

My previous apartment at Andheri (W), which was a 2 BHK, was really spacious and the living room was sea-facing. Here, at my new place in Malad (W), all the furniture, even the bedding is downsized to fit the smaller living space. The place may be compact in size but the use of bunk beds and other modular twists trick the eye into thinking it’s a bigger place..

Change only the position of the way the bedding or seating arrangement is. In order to create the feeling of a bigger room, leave a minute gap between furniture and walls. For example, a sleek sofa or an armrest chair will add a glamorous quotient, yet not gobble up the space.

2. Keep a low profile.

Use dark and light hues to compliment each other. Furniture that is lower to the ground, adds to the vibrancy and feel of a larger surface area, when actually the area available is less.  In the bedroom, a bunk bed or even a sofa cum bed is a great idea. Alternatively, if your tastes run more toward the colourful or sporty side, go for brighter and warmer accents on your furniture, tiles or paintings. Positioning your art decals and décor, in the lower half of the room helps too.

3. Mirror, mirror on the wall…

If you hang the mirrors low, it creates an illusion of a big space. Mirrors can be cleverly positioned that they actually look like another window. Creative utilization of spaces should be done with interior decorators.

4. Ditch the drapes and rugs

Unclutter your space by ditching the drapes and the rug. Go for blinds and sheer curtain instead.

5. White it out

You can go colorless. The reflective power of white floors coupled with breezy, lightweight fabrics can work wonders. If possible, avoid heavy materials and fabrics that absorb light and weigh your room down. Linen is a perfect example of a lightweight material that will increase the sense of airiness in the room.

7. Keep it simple

If a lot of decor is present in the room, it can feel claustrophobic, and more cluttered. If you go for a wallpaper accent for the wall, then keep the rest of the room simple. If you need that huge oil painting in your living room, try to ensure that it is the only art in the room. Focus on just one decorative item.

The key here is ensure that less is more. Have fun decorating your little haven!