MJK Real Estates

Warning for Homebuyers: Expect a 10-15% Price Increase Government Initiatives Amid Pandemic The real estate and construction sectors, heavily impacted by the COVID-19 pandemic, have seen the central government introduce several incentive schemes to spur growth. However, due to various new challenges, prospective homebuyers are now facing an additional 10 to 15 percent increase in costs. Rising Construction Material Costs Since January 2020, the prices of construction materials have been steadily increasing. Simultaneously, market demand has surged, forcing real estate and construction companies to purchase materials at higher prices without alternatives. Price Hike in Materials Over the past year, the prices of tiles, bathroom fittings, electrical fittings, and wooden materials have risen by approximately 20 to 30 percent. Unable to absorb these costs, construction companies have passed the price increases onto the customers. 10-15% Price Increase for Homebuyers As a result, buyers of ...

 High Court Orders Re-registration of Lands Registered Before October 23, 2016 High Court Relaxes Ban on Registration Chennai: The High Court has relaxed the ban on land registration. It has allowed the re-registration of approved and unapproved plots that were registered before October 23, 2016. Background of the Ban A case was filed in the Chennai High Court seeking a ban on registering agricultural lands as residential plots. After hearing the case, the High Court imposed a ban on registering agricultural lands as residential plots. Real Estate Developers' Appeal In response to the ban, real estate developers filed a case in the High Court requesting the removal of the ban. The case was taken up for hearing in January. During the hearing, representatives from the real estate sector argued that the ban was adversely affecting the public. Government's Response and Court's Direction Following the arguments, the judges stated that the government should decide on the issue, c...

 How RERA Impacts Homebuyers: Key Compliances The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to protect the interests of homebuyers and ensure transparency in the real estate sector. Here are some key compliances under RERA that significantly impact homebuyers: 1. Project Registration All real estate projects must be registered under RERA before any advertisement or sale. This ensures that only approved projects with valid documentation are marketed and sold, protecting buyers from fraudulent schemes. 2. Transparency in Advertising Developers are required to provide accurate and complete information about the project, including the layout plan, carpet area, and the status of approvals. Misleading advertisements can result in penalties, ensuring buyers receive truthful information. 3. Timely Project Completion RERA mandates developers to adhere to the timelines provided at the time of registration. In case of delays, buyers are entitled to compensation,...

 The Best Place to Buy Affordable Homes in India! Growing Dream of Homeownership As the Indian real estate sector continues to grow rapidly, owning a home remains a significant dream for the middle class. To encourage this segment, the central government has announced various schemes, but the primary beneficiaries are often those with greater financial means. Finding Affordable Cities So, which cities in India offer the most affordable housing options for the common man? Knight Frank's Affordability Index According to the 'Affordability Index 2021' released by Knight Frank, a leading real estate advisory firm in India, cities with house prices at 50% or less of the income level are considered affordable. The index assesses the affordability of housing in major cities. The 50% Benchmark If the affordability index is below 50%, the housing prices are considered affordable; if above 50%, they are deemed expensive. Among the major eight cities in India, Mumbai has the highest h...

 Tata's Major Decision: ₹4000 Crore Investment in Real Estate! Tata Group's Diverse Portfolio The Tata Group, one of India's largest conglomerates, operates in various sectors including IT, automobiles, manufacturing, and real estate. Tata Realty, the company's arm in the real estate and construction sector, is taking significant steps in the post-pandemic economy. Government's Construction Sector Focus After the COVID-19 pandemic, the Indian government has heavily relied on the construction sector to boost the country's economy, trade, and employment. The government plans substantial investments in this sector, prompting private real estate and construction companies to follow suit. Tata Realty's Major Investment Tata Realty and Infrastructure has planned an investment of approximately ₹4000 crore in residential and commercial projects over the next two years. In addition, they have decided to resume the stalled Mumbai Mulund project. Post-Pandemic Real Est...

Rising Populations in Bangalore, Pune, and Chennai: The Future Outlook  Real Estate Stocks on the Rise In recent sessions, real estate stocks have started to peak, and expectations in this sector are increasing. With interest rates at historically low levels and the economy rebounding, demand is also coming back. Specifically, there is growing interest in real estate among the middle class.  Historic Low Interest Rates Many people now have the mindset that owning a home, even if it's a small one, is crucial. This is the perfect time to fulfill that dream, as banks are offering home loan interest rates at historically low levels.  BSE Realty Index Performance Meanwhile, the BSE Realty Index has seen a 10% rise in the last five sessions and a 35% increase so far this year. There are many favorable indicators that suggest further growth in this sector's stocks.  Growth in the Realty Sector The Nifty Realty Index has broken a decade-long stability. Research reports indic...

Understanding Real Estate Real estate is a commonly known term to everyone. However, let's explore the relationship between buildings such as houses, plots, land, and the term real estate.  Historical Context of Real Estate The term 'real estate' used for buying and selling houses and plots has been in practice since the 17th century. Despite the changes in ownership of land or buildings over time, they remain permanent and true in nature, which is why they are referred to as "real."  Evolution from Royal Estate to Real Estate During those times, if a citizen of a country passed away, their properties would become the possession of the king. The heirs of the deceased would write a permission letter to the king to claim the property. Thus, the term 'Royal Estate' eventually evolved into 'Real Estate.'  Land and Uniqueness Real estate pertains to land, plots, and houses. The term real estate is used based on the idea that no piece of land is identica...

Technology and Planning in Real Estate Business Becoming an entrepreneur involves various plans, decisions, and economic conditions. It requires continuous effort and hard work as the foundation. In today's era, where numerous business opportunities are abundant, the real estate sector has a traditional business background.  Adapting to Modern Technology At the same time, it has adapted itself to modernized technological methods. According to experts, in the past few years, the structure of the real estate market has evolved into various subdivisions based on commercial and civilizational changes.  Emotional and Legal Aspects of Real Estate The real estate sector is not just a commercial transaction between buyers and sellers. It involves the emotional process of transferring the ownership of various immovable properties like houses, plots, land, and plantations from one person to another, based on economic valuation and legal procedures. Therefore, those who wish to venture i...

Key Considerations for Real Estate Agents & Builders When dealing with real estate, whether it involves houses, plots, land, or plantations, business transactions must be based on clear and precise documentation, such as title deeds, patta, and encumbrance certificates.  Accountability of Builders and Developers Builders and developers must ensure that they are accountable to the customers during business transactions.  Evolution of Real Estate The real estate industry has transitioned from merely dealing with concrete structures and sales to a service-oriented business model based on the essential living needs of customers. In the future, builders, developers, and real estate agents can achieve success by crafting business strategies that consider not only market conditions but also the general mindset of people, through a well-structured real estate business plan.  Considerations for Builders Builders must certainly take into account the global technological advance...

36% Decline in Office Leases: Major Issue for Big Cities!  Significant Drop in Office Leases In India's top 7 major cities, office leasing volumes dropped by approximately 36% in the January-March quarter compared to the previous year. As a result, only 5.5 million square feet of office space has been reactivated, according to JLL.  Impact of the COVID-19 Pandemic Due to the COVID-19 pandemic, most employees in India have been working from home, making office spaces redundant for many companies. Employees have been working from home for almost a year without any adverse effects on business operations.  Cost Reduction As a result, companies have not only reduced but also closed many office spaces. From large corporations to small businesses, companies are reducing expenses and providing convenience to employees by continuing to have 60 to 80 employees work from home.  Decreased Demand for Offices Consequently, the demand for office spaces in major cities has significa...

Real Estate Tycoons Set to Make a Comeback with Budget Boost Delhi: The interim budget has provided significant encouragement to the real estate sector, which had been adversely affected by central government measures like GST implementation and demonetization.  Impact of Demonetization and GST There were allegations that the number of home buyers had significantly decreased due to actions such as demonetization and GST. Consequently, the real estate industry faced severe impacts, and economic experts pointed out that the construction sector's decline led to job losses.  Real Estate Budget Speech Until a few years ago, real estate tycoons and brokers were a common sight not only in cities but also in villages. However, due to demonetization and GST, the presence of real estate tycoons dwindled. In this context, the current government's budget speech included several key decisions to stimulate the real estate sector.  Rental Income The tax exemption limit on income from ho...

 Buying a Home Now Made Much “Easier” - Real Estate Bill Passed in Rajya Sabha New Developments in Real Estate Regulation Delhi: The Real Estate Bill, passed in the Rajya Sabha, brings various benefits for prospective homebuyers. The bill for establishing the Real Estate Development and Regulation Authority was initially introduced during the United Progressive Alliance (UPA) regime. After the National Democratic Alliance (NDA) led by Modi took charge, some amendments were decided upon. Key Amendments Two significant amendments are noteworthy. Previously, homebuyers were required to pay 70% of the amount as an advance. This has now been reduced to 50%. Additionally, the bill was originally designed to regulate only residential construction companies. Now, the central government intends to include commercial construction companies under this regulation as well. Transparency and Financial Regulation Companies will now need to open a separate bank account for construction-related tran...

 How RERA Affects Homebuyers Key Provisions: 1. Notification of Changes: Any minor additions or alterations must be communicated to the allottees. 2. Approval for Major Changes: Any other additions or alterations require the consent of two-thirds of the allottees. 3. No Pre-Registration Advertising: No advertisements or releases before registering with RERA. 4. Transfer of Majority Rights: Approval of two-thirds of allottees is required to transfer majority rights to third parties. 5. Project Information Sharing: Sharing details about the project plan, layout, government approvals, land title status, and sub-contractors. 6. Timely Completion: Increased emphasis on completing projects on time and handing them over to consumers. 7. Quality Assurance: A five-year defect liability period has led to improved construction quality. 8. Formation of RWA: Creation of the Residents' Welfare Association within a specified time or within three months of selling the majority of units. Uni...

 Is This the Right Time to Buy a Home? The Real State of the Real Estate Sector Impact of the Pandemic on Real Estate The real estate sector was one of the major sectors that came to a standstill due to the COVID-19 pandemic and the subsequent lockdowns. Experts argue that the slowdown began as early as 2016. Financial Crisis Since Demonetization Since the demonetization initiative, the real estate sector has been facing financial crises. Following that, the introduction of GST and other issues compounded the problems. Economic Struggles During COVID-19 Currently, many people are struggling to meet basic needs due to the pandemic. Many have lost their jobs, leading to a halt in all non-essential investments. However, the economy is now gradually recovering. Standstill in Real Estate As a result, sales of properties, including homes and offices, have come to a complete standstill. Unsold houses remain empty, and many under-construction homes are stalled due to financial issues. Give...

 Chennai Residents Ready to Move In! Government Initiatives The Indian real estate sector faced significant setbacks due to the COVID-19 pandemic and lockdowns. In response, the central government announced various incentive schemes to boost the sector. Similarly, several state governments, notably Maharashtra, introduced benefits such as tax reductions and fee waivers to encourage real estate business. Major Shift in Real Estate Sector Due to these measures and the changing preferences of Indian people, there have been substantial changes in the real estate sector. Real Estate Business Typically, in India, a real estate project gets sold out within a few months of its announcement, especially if it's a project by a well-known company.  Changes Post-2020 However, post-2020, there has been a significant shift in the perspective towards real estate business among people. Particularly, those planning to buy houses in 2020 and 2021 were not willing to take risks. Ready-to-Move Hom...

 L&T Achieves Milestone by Constructing India’s First 3D Printed House in Tamil Nadu Introduction of 3D Printing in Construction While countries like the USA, UK, and Russia have been researching the use of 3D printing technology to construct houses quickly with various technological aids, L&T has successfully completed the construction of a house using 3D printing technology for the first time in India, specifically in Tamil Nadu. L&T Construction Company The $21 billion L&T Construction company has, for the first time in India, constructed a sturdy house using a 3D printing method with a cement mixture. This G+1 house, which includes a ground floor and an upper floor, marks a new revolution in the real estate sector in Tamil Nadu. 3D Printing Method Under the central government's plan to build 60 million homes by 2022 as part of the initiative to provide housing for all, L&T's construction using 3D printing technology is expected to create significant oppo...

 What NRIs Should Consider When Investing in Real Estate Non-Resident Indians (NRIs) are known for exploring ways to invest their hard-earned money in India. Some prefer to diversify their investments into various types of properties, while others invest in properties like homes to live in post-retirement. Regulations and Simplifications To increase foreign capital flow into India, the Reserve Bank of India (RBI) has simplified certain regulations for investments by NRIs. The Foreign Exchange Management Act (FEMA) governs real estate transactions for NRIs. Here are five essential rules NRIs should know before investing in Indian real estate. Type of Property NRIs can only invest in commercial or residential properties. They cannot acquire agricultural land (including farmhouses and plantations) unless inherited or gifted. Additionally, citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan cannot purchase any immovable property in India without prio...

 IT Employees Leaving Bangalore: What’s Happening? Impact of the Pandemic The impact of the coronavirus has brought significant changes to people and the country, especially in major cities. In Bangalore, a city filled with IT companies, people have made many crucial decisions following the pandemic. These decisions are poised to turn the real estate industry upside down. Work from Home Trend Millions of people in Bangalore have been working from home since the arrival of COVID-19. Many IT companies are planning to have 50 to 75 percent of their employees work from home permanently to cut costs post-pandemic. Shift to the Outskirts As a result, both tenants and potential homebuyers are opting to purchase homes outside the city instead of within the city limits. Changing Mindset Most employees in Bangalore work in IT or related digital trades. Despite the pandemic, 80 percent of work continues efficiently because everyone is working from home. With IT companies planning to offer per...

  What is the Right Age to Buy a House? Things Young Adults Must Definitely Consider... A house is one of the most essential needs. If it's your own house, you can live as you wish, and you can accommodate as many people as you want.  Freedom and Flexibility You can paint on the walls, scribble, and sing loudly. You can't do that in a rented house; the landlord might evict you. Then you'll have to search for another house again. Investing in a house or land means you are paving the way for a more independent life. A Dream for Everyone Owning a house is a dream for everyone. Living in a house that is built on our own land or bought with our own savings brings unparalleled joy compared to renting. Investing in a house can be considered both a source of happiness and a wise decision. The sooner you start saving for a house, the more beneficial it will be for you. Home Loan To achieve the dream of owning a house, you can take a home loan. It helps you realize your dream easily....

 Should You Buy a House After Retirement? Follow These Tips..! When your friends were investing in properties, you might have been dealing with other issues. Your responsibilities might have been different.  No matter the past, now that you are retired, you definitely need a house. However, saving money is extremely difficult, and property prices are skyrocketing.  By saving money in various ways, you can make your dream home a reality within your budget. Here is a list of ways you can manage money when planning for your dream home after retirement. Size Generally, after retirement, it's just you and your spouse. Therefore, a smaller-sized home is recommended. A smaller property requires less money, which means your budget will be less. Additionally, maintaining a smaller house costs less compared to a larger one. Location The location of the property you buy determines its price. Senior citizens are often better off staying away from the bustling city life. This has two ...

 Super Idea for Setting Up a Low-Cost Swimming Pool! If you have enough space in your home, setting up a swimming pool is definitely a great idea. Having a swimming pool at home not only provides great entertainment but also increases the value of your house when selling it. If you are planning to set up a swimming pool without breaking your budget, follow these cost-saving methods. Vinyl-Liner Swimming Pools Among the three types of swimming pools available in the market—vinyl liner, fiberglass, and concrete—vinyl liner pools are known for their affordability, ranging from Rs 1,00,000 to Rs 3,00,000. Although inexpensive, these pools require frequent maintenance and have a shorter lifespan of 7-15 years. Shallow Pool If you want a swimming pool without spending a lot of money and within a small area, opt for an in-ground pool design with a shallow depth. This design is cost-effective to implement and offers long-term durability, saving you significant money. A small and shallow po...

Planning to Buy a House? Read This! If you are currently thinking about buying a house, buy it only for your own use. This is not the right market for investment, as there is no prospect for property value appreciation in the next two years. If you are planning to buy a house, now is the right time. Interest rates are very low, and many builders who have completed a large number of homes are ready to sell at discounted prices. The Right Opportunity Due to regulatory measures like the Real Estate Regulatory Authority (RERA), many builders are focusing on completing unfinished projects rather than starting new ones. Golden Era Thus, those looking to buy a house can look for projects that will be completed within the next three to six months. Therefore, this can be considered a golden era for homebuyers. Here is a checklist of what to consider before investing in a property: RERA Website Firstly, log in to the RERA website of the state where you want to invest. For a project that is about...

A Luxury Home Must Have These Features or It's Useless! Despite its gradual growth, there is no lag in luxury in India. According to Forbes, in 2017, India boasted 101 billionaires, standing tall in the global market. Additionally, with nearly 2.36 lakh millionaires, India ranks fourth globally in terms of wealth attraction. In such a prosperous country, the real estate sector is witnessing various levels of growth, with no shortage of luxury homes. What features do billionaires and millionaires expect in a luxury home? Beyond everything, the features listed below are what truly define a luxury home. Technological Prowess Every real estate developer and homebuyer wants to be a pioneer in the technology used in a luxury home. Hence, automation is a key word. Depending on the property price index, the level of technological advancement varies. Energy-efficient homes, smart lighting and audio systems, climate-controlled homes, and smart bathrooms are all crucial features in modern lux...

A Detailed Analysis of GST in the Real Estate Sector Introduction of GST in India The Goods and Services Tax (GST) was introduced in India to replace the multiple layers of taxes previously imposed. Understanding the GST rates when purchasing properties in India has become crucial to accurately assess the impact of these taxes on your financial situation. The Importance of GST in Property Purchase Buying a home is a lifetime investment and a significant milestone. However, apart from the property value, numerous expenses come with it, which are often overlooked during the planning phase. One of the most critical expenses is the GST. Here’s how GST affects real estate and how to navigate it. Categories of Properties To understand the impact of GST on real estate, we can categorize properties into three types: 1. Properties under construction 2. Ready-to-move-in properties 3. Properties for rent GST on Properties Under Construction Properties that are under construction and do not yet ha...

What is the Difference Between a Home Loan and a Mortgage Loan? Understanding the Difference We often use the terms "home loan" and "mortgage loan" interchangeably without realizing they are entirely different concepts. Here are some key facts about these two banking concepts: Collateral To obtain funds from the market, one is generally required to provide collateral. This is true for all types of mortgage loans. Therefore, a home loan is essentially a type of mortgage loan where the house is provided as collateral. Simultaneously, you can use your other assets as collateral to secure a loan. Mortgage Loan In a mortgage loan, your property acts as security. Simply put, in mortgage loans, your property is used as collateral for the loan. Most home loans in India are essentially mortgage loans, meaning if you fail to repay the loan, the bank has the right to sell your property to recover the loss. Home Loan Home loans have a predefined purpose and are given only for t...

How is Property Tax Calculated? Registration and Stamp Duty When purchasing a property, registration fees and stamp duties must be paid. Following this, property tax must be paid annually without fail. Purpose of Property Tax Primarily,  property tax provides revenue to the government for various services such as cleanliness, health, and pest control in the community. Legal Action for Non-payment If a person  refuses to pay the required amount, a legal notice will be sent. Additionally, the administration may deny services such as water supply. Factors Determining Property Tax Calculation The property  tax amount payable by the property owner is determined based on the municipality's administrative guidelines. Along with this, other factors are considered. Other Factors 1. Location and Size of the Property: The location and size of the property significantly influence the tax calculation. 2. Nature of the Property: Depending on whether the property is ready for occupanc...

Planning to Buy an Apartment? Don’t Believe These 10 Myths! RERA's Impact on the Real Estate Market The new Real Estate Regulation and Development Act (RERA) has revived the dormant property sales market. Some of you might be considering buying a home now. Beware of Aggressive Marketing This is a time when sellers and agents are aggressively promoting with free schemes and discounts. Analyze their sales peaks and make decisions based on facts. Property Prices Never Fall - Myth The  first thing a builder or property seller might tell you is that property prices never fall. In other words, they will urge you to not worry about the price and just go ahead and buy. Get real insights from friends, relatives, or parents who have purchased property before. What was true in the past may not be the case now. Real Estate is Like the Stock Market Real estate,  like other asset classes, goes through ups and downs. Unlike the stock market or gold, real estate investments don’t evaporate qu...

What You Must Know About Home Insurance! Importance of Home Insurance Building  a house is often seen as a major life achievement, but many people do not insure their homes. Those who take bank or government loans for building a house are required to take home insurance, but this usually lasts only until the loan is repaid. Lack of Awareness Even those  who have taken home insurance policies are often unaware of the terms and conditions. Here’s what you need to know and do to ensure you are adequately protected. Dream Home Prakash, a  school teacher, bought a house and took out a home insurance policy for it. However, when a geyser in his bathroom overheated, causing a fire that destroyed half of his belongings, he discovered that his policy did not cover this accident. Insurance Policy Prakash  was shocked to learn that his policy did not include benefits for such incidents, despite his agent having assured him that it covered natural disasters, fire, and theft....

Why Invest in Real Estate? 10 Facts You Need to Know! Evolution of Real Estate Investment Thirty years ago, investing in real estate was considered  a luxury. Today, with real estate becoming a leading profitable industry, middle-class individuals to wealthy investors are fearlessly investing in this sector. Safe and Profitable Choice Unlike stock markets and mutual funds, real estate offers guaranteed high returns without the risk of loss. Here are some facts that prove this reality. Safe Investment A house is the safest place for a person, and so is the investment in it. Unlike stock markets and commodities, where investments can rapidly grow or vanish, real estate investments have historically only appreciated over time. Ample Financing Options It’s easier to get financing for buying property than for purchasing other goods or starting a business. Banks and financial institutions compete to offer loans for real estate because these loans are often repaid successfully. Low Intere...