Author: Bhatia realestate

3 BHK flats in Zirakpur – Why Choose Motia Royal City?

One has to look into a lot of factors and consider several facts while choosing a new home. When you spend such a large fraction of your hard earned, life’s earnings, you deserve to get the best. Your search just can’t go wrong here. Well, if you are looking for 3BHK apartments in the Tricity, your search ends here.

Motia Royal City, brings to you the most promising residential township in Chandigarh, offering the best in class 3BHK flats in Zirakpur.

Here a few salient features of Motia Royal City:

Flats with Gas Pipeline:

Each flat in the Motia Royal City has been equipped with a fully functional gas pipeline, which provides smooth, an end to end delivery of natural gas in the homes. This is a feature which is rarely seen in the residential offerings in the region. The pipeline network has been designed to be absolutely safe and convenient to use.

Continuous Water Supply and Power Backup:

While this is something that amounts to the very basic facility, it is wrong to assume that every upcoming residential township would promise this. But Motia Royal City does. We have designed our systems to ensure 24-hours continuous supply of water in homes, along with an uninterrupted supply of electricity and power backup.

Separate Lift Systems in all Buildings:

All the towers in the grand residential project have been equipped with their individual mobility systems, which comprise of not single but multiple lifts. This lift system ensures smooth mobility in the multiple floors of the buildings, with no waiting for the lift.

Dedicated Maintenance Management Wing:

Motia Royal City will also have a dedicated wing for ensuring the maintenance of the buildings and the apartments. Through the maintenance management wing, it will be ensured that the township is clean, hygienic, well-lit and beautiful.

With such amazing amenities and facilities available in one residential township, Motia City Homes Mohali is providing essentially the best 3BHK homes in Zirakpur.

Chandigarh Citi Center – The Best Business Property in Chandigarh

Chandigarh as a city is up and ready for business. Gone are the days when Chandigarh was merely a retirement paradise. Now the city is brimming with new, big and small businesses, especially after the satellite towns like Mohali and Zirakpur coming up.

With so many business hubs and properties being constructed in the tricity, it becomes important to pick up the right one for your business. The right location, the right price, the right kind of amenities and the best infrastructure is what makes for a good commercial property. Bhatia Real Estate – the best property dealer in Chandigarh brings to you Chandigarh Citi Centre, which offers a combination of all of these, making it the best commercial property in Zirakpur.

Biggest Commercial Plazza

The Chandigarh Citi Center has emerged as the biggest commercial Plaza in the city of Chandigarh and hence is fast becoming a major center of attraction. The tag is not just a feel-good factor, but it also draws a lot of customers, professionals, and corporates towards it.

The Ideal Location

The location of the Chandigarh Citi Center is one of its biggest advantages. The monumental, modern plaza is located overlooking the National Highway 22, Delhi-Chandigarh Highway and is just a 10 minutes’ drive from Chandigarh International Airport.

Massive Car Parking

While many shopping centers and commercial complexes face parking woos, the Chandigarh Citi Center has duly addressed the problem. The complex has an inbuilt, massive 2000-capacity car parking area which caters to the needs of the customers and the workforce at the complex.

While these are a few highlights of what awaits you at the Chandigarh Citi Center, you can stay assured that your business is going to grow by leaps and bounds in the city, with a property at the Chandigarh Citi Center. We offer the best property in VIP road Zirakpur.

Ready to Move in 2-3BHK Flats in Zirakpur | Bhatia Real Estate


A house is made of bricks and beams. A home is made of hopes and dreams. People putting up their entire investment in one particular thing is a big deal. Home ownership is not as tough as it seems. Though we at the Bhatia Real Estate truly understand the efforts and hard work that people put in it, we still consider that buying a property is like purchasing your dreams. Then why to worry? It’s time to grab your dreams 3bhk Flats in Zirakpur.

We have always been recognized for low budget flats in Chandigarh Zirakpur and we continue to deliver our consumers with the best homes in their financial spheres. Our company works in order to help the customers and give them proper guidance for a smart selection and choice. People sometimes make a hurry in buying a property, leaving many better options unnoticed. We think that there are numerous facilities and amenities upgrading with the development of real estate industry, that people need to consider without any haste.

Bhatia Real Estate keep these concerns on the priority list and provide a plethora of options to the consumers. We have many alternatives suiting your lifestyle. May it be any particular location, amenity, facility, or designs, we have every kind of house ready to move in.  We are known for our best services and our world-class projects like Chandigarh Citi Center, Sushma residential flats in Zirakpur, GBP Athens Group, Mona City Homes Mohali, Motia Royal City, and many more.

Our property in VIP road Zirakpur is the best one-stop destination for any property solution. Our housing facility not only focuses on the apartments but also the facilities, amenities and a good infrastructure that makes it the perfect for your living. Comfortable living is what we aim to provide the consumers with.

Best Property Provider In Chandigarh | Bhatia Real Estate

Homes have always been a great pleasure. It is something that gives us the joy of life. It is truly a blessing for most of the people and they always love it as a member of the family. When we talk about home, we feel happy, delighted and proud to own something that truly belongs to us. It is something that supports us and helps us fight every situation. It holds our numerous memories of happiness.We at Bhatia Real Estate, truly understand the importance of home and believe that it is a place of love, hopes, and dreams.

Bhatia Real Estate, known as the best property dealer in Zirakpur considers that home is where our story begins. We are the company that aims at helping our clients with best residential. We deal in flats and apartments with the best facilities and amenities.We have given housing solutions to our customers in projects like Chandigarh Citi Center, Sushma Residential flats in Zirakpur, Mona City Homes in Mohali, Property in Hermitage Park Chandigarh. Our business portfolio is confined to international projects.We understand the importance of hard work and efforts, customers put in to buy a home and to foster the same we deal with complete transparency and honesty. We have multiple options for our consumers, may it be an architectural design, any particular amenity of choice, or location.We are catering to all those services which is over and above the customer expectation.Our USP is, we offer residential properties which implies to all the market segment.

Finances play an important role in the purchase of anything. We have easy financing options with solid paperwork. We believe a certain financial aid is always required to buy a property and  home loans nowadays are one such aid which is giving a great relief to the customers for buying a property. Our company is providing home loans and for the same has partnered with big banks providing financial support.Consumers can directly approach us and ask for any kind of  financial assistance.

Bhatia Real Estate is one of the top choices among consumers. We work to provide our customers with best services and solutions. We believe that homes help and supports us financially and therefore gives the best return on investment.

Documents for Home Loan | Flats in Chandigarh Zirakpur

Most people in our country need some kind of financial support for buying a property. Good thing is that today, people have an easy way of solving the problem of finances – home loans. Most of the leading banks these days are helping the consumers with easy home loans so that they can buy a roof over their head.
However, getting a home loan is not just about the finances. Besides financials, there are some things that are of utmost priority when dealing with such legal issues – these are the documents. Your documents are a solid proof and are of utmost important in such matters.
Bhatia Real Estate is among the best property dealers offering low budget flats in Chandigarh Zirakpur. We are one such company providing the best residential along with complete guidance to the consumers. Below we list few important documents that are a prerequisite while applying for a home loan or making any property purchase-
For Salaried Individuals – for people who are employed and looking for a loan, need a few documents for an approval. These are few documents that are necessary to carry while applying for the loan –
Proof of both identity and residence – Valid Passport, Adhaar Card, Voter ID Card, or Driving License.
Proof of Income – Last 3 months salary slip, Last 6 months Bank statement showing salary credits, and latest forms and IT returns.
Other Documents – Employment contract/Appointment letter in case of less than 1-year employment, last 6 months bank statements showing repayment of any ongoing loans, and Passport size photograph of all applicants/co-applicants to be affixed on the Application form and signed across.
Property Related Documents – Copy of allotment letter/ buyer agreement and receipts of payments made to the developer.

For Self-Employed Individuals – people who are running any business need to submit the beneath mentioned documents of applicants/co-applicants for the approval of the loan –
Proof of both identity and residence – Valid Passport, Adhaar Card, Voter ID Card, or Driving License.
Proof of Income – Income tax returns of last 3 years, Profit and loss account statement with last 3 years balance sheets, and current account statement of the business entity of 6 months along with saving account statement of the individual.
Other Documents – Business profile, latest form 26 AS, Memorandum and articles of association of the company, List of directors and shareholders along with their individual shareholding certifies by a CA/CS if the business is a company, Partnership deed, details of ongoing loans of the individual and the business with outstanding amount, instalments, security, purpose, balance loan term, and passport size photo of applicants/co-applicants.
Property Related Documents – Copy of allotment letter/ buyer agreement, and receipts of payments made to the developer.
Property dealer in Zirakpur – Bhatia Real Estate believes that people should keep all the above mentioned documents handy while applying for a home loan. A home loan can only be approved if you have these documents. It should be noted that in some cases, more documents can be also asked for, as per the terms and conditions of the concerned bank.

Advantages of Residential Flats | Best property dealer in chandigarh

People often think a lot before buying a home. A number of people are moving to big cities to settle, search jobs or get education. Flats have always been a major concern for people. Some find it very good whereas some face a kind of fear investing in real estate, for instance, return on investment, safety, quality living, and much more.

Bhatia Real Estate known among the best property dealers in Chandigarh considers that the consumers need right guidance and solution to make any purchase in real estate. Flats and apartments are truly best accommodations with utmost facilities and services. Here are few advantages of flats that will clearly define the benefit of investing in it–

1. Location – One cannot easily purchase an independent home at the particular location of choice. But at the same time, you can easily get an apartment or a flat at that location or near to it with much cheaper prices.

2. Amenities – A residential flat or apartment gives you a plethora of amenities, for instance, gym, swimming pool, tennis court. These amenities are additional as well as do not cost you any extra money expect the total purchase amount.

3. Security – Security is one of the major concern at present. While owning a residential flat you get complete security. Flats offer you several layers of security, for instance, boom-barrier entry gates, CCTV cameras, security guards, alarm system, and much more.

4. Commitments – You can even get a home on contract and when your contract ends you can shift to another apartment with minimum prior.

5. Costs – Owning a home gives you many financial profits, for instance, sometimes the monthly EMI’s do not cost you more than monthly rentals, these are even cheaper than independent homes, and moreover maintenance cost is also very

RERA registered property dealer in Zirakpur – Bhatia Real Estate, believes that people need this awareness, as residential flats carry several benefits and advantages that other properties do not offer. Flats give you a complete space of your choice with numerous added services.

9 Top Colors for 2018 | Bhatia Real Estate

Every color is significant in its own way. While choosing the colors for your home, you often select colors that are very attractive. The trends keep on changing with time and now people have moved towards various shades; of different hues and tints.

Bhatia Real Estate is the real estate dealers that deal with the best property in Hermitage Park, Chandigarh. We not only provide the commercial and residential spaces but also guide our consumers with best housing solution. Here are some latest color trends that can give your house a new definition –

  1. Turquoise – This vibrant shade of blue is one of the best colors to put on your walls. It gives a bold statement to the walls and makes the room look complete.
  2. Sunshine Yellow – Yellow color always feels organic and natural. Try out this color this year; it gives a cheerful and cozy statement. You can also try to mix this color with cream or blue accents for a better effect.
  3. Blush Statement – This shade of dusty rose is perfect to apply to your home. This color brings out neutral home styling and is the color for 2018.
  4. Earthy Shades – Brown color is not used much by people, but it is one of those lush earthy shades that give both a natural as well as a sophisticated look. Pair the color with red and green tones, to make your home look relaxed.
  5. Deep Red – Red color is attractive and if you decide to put this color on your wall, you are likely to get an atmosphere that makes you feel energetic and peppy.
  6. Purple Tones – This hue is truly one to watch. Trying to put this color on your walls or on your furniture these colors is rich enough to add energy and depth to any room.
  7. Black – This color has never been considered good in India but as the trend is changing people are also changing their viewpoint and adding black as a statement color.
  8. Pastels – To make your room look modern, simply add minimal pastel colors to your walls this year, for instance, mint green or sandy pink.

Best property dealer in Chandigarh – Bhatia Real Estate, tries the best to provide the consumers with best residential properties. The above tips are a guide to our consumers who are trying to add a new look to their homes.

Infrastructure Speaks For Itself

Utilities always offer a hassle-free experience to the customers. But the most important element of housing is a comfortable and well-constructed house. Infrastructure attracts clients on the first sight, but just the outer beauty is not enough from the consumer point of view. People have become smarter and more focused towards a perfect living in the present scenario. There are numerous consumers with different perspectives and choices towards the residential but one thing remains common is a strong and well-constructed infrastructure.

Bhatia Real Estate is one of the preeminent dealers who also provide flats in Zirakpur. Today, undoubtedly a comfortable living is of utmost priority. We are a residential property dealer that aims at providing the best houses to our customers. Our peak facilities include hassle-free experience, well-constructed infrastructure, and free utilities. We provide our customers with the residential that are amazingly designed to add a class to your living standards. Our one sole goal is to make you find your dream home. May it be any kind or any design we have a plethora of residential offers, that are ready to suit your lifestyle. We deal in housing with finest architectural designs that are latest and trending in the market. The perfect housing patterns with top utilities are more than astonishing. Our company has a blend of houses with completely different architectural skills and best facilities and amenities for a comfortable living. We keep complete transparency with our customers and never provide anything that is not worth your time, money, and living standards.

Low Budget Flats in Chandigarh Zirakpur – Bhatia Real Estate, is completely customer oriented company and believes in customer satisfaction as a priority. We value the time and trust our customers show towards us, and that is what makes us stay loyal towards them. We completely work with an objective of making our consumers more than happy dealing with us.

Home Is The Real Investment | Bhatia Real Estate

Our home is like a mirror to our personality. People often choose the home décor according to their own taste and preference. Buying a home also depends on the particular choices of consumers, but a home with additional facilities, amenities and impressive infrastructure can also be a major choice for the buyers. People want to be connected in the race of trending and thereby end up choosing the things that upgrade their lifestyle irrespective of compromising with anything.

Bhatia Real Estate – Best Property dealers in Tricity, aims at providing the dream house to the consumers. We deal with best residential townships in the city and have finest residential spaces for our clients. We offer our clients various residential and commercial spaces with utmost facilities and amenties. Our company understands the importance of homeownership and to help the clients with easy access to accommodations, we have perfect housing facilities and solutions.

We offer our clients a hassle-free experience. We strive for providing you a well-constructed dream home. Our housing facilities include numerous facilities along with free utilities to make them perfect for you and your family. We also give you the opportunity of free rentals. Finances and paperwork being one of the important and time-consuming concept, but at the Bhatia Real Estate, we help our clients with best and easy financing solutions. We believe in complete transparency and to foster the same we have solid paperwork, where every bit will be stated to our customers in detail without keeping them in the dark.

Bhatia Real Estate aims to work in every sphere of the real estate industry to provide you with every facility and amenity. We have a plethora of projects providing residential and commercial spaces, for instance, Chandigarh Citi Center, Sushma Residential Flats, and much more including Mona Heights. Customer contentment is topmost significant to us.

Top 5 Elements to Gorge In Home | Flats in Zirakpur


Purchasing a new home or refurbishing an old ace, both need some essentials to get it better and attractive. Housewares are a very big category while shopping. You choose everything that makes your home complete. Can you imagine your home without accessories? It won’t be less than living a boring and dull life. The home accessories not only make our home complete but also makes it spectacular and striking.

At Bhatia Real Estate, we aim at assisting our customers with right guidance and solution related to residential properties. Among the best residential property dealer in Chandigarh, we believe that only buying everything is not indispensable, but buying the right and appropriate material is indeed required. Below are 5 top home items that are worth indulging on –

Sofa – We spend the maximum time in the living room watching T.V or entertaining around. The sofa is our favorite thing to sit or lie on. At this point, you necessitate being very selective about buying a perfect sofa. You can easily get a normal sofa at less cost, but it may last till 5 years only. Better go for a superior option that may last longer. The finest color, style, and shape of a sofa add life to the living space.

Artwork – Investing in unique artwork can be expensive but worth. A home filled with artwork and colors seems more attractive and adds energy to the occupants. The artwork appends a uniqueness to the dwelling house and makes it more captivating

Kitchen Table – A table in the kitchen is mostly used a lot in a day. It’s always better to have a table that meets your lifestyle and household size for sure. If you love conducting parties or dinner for friends and family look forward to the immense kitchen table.

Mattress – It is not an elegant element but absolutely an important one. We buy a mattress but without considering our health. Mattress plays an important part in holding up our spines. Take your time, research about the mattress and then buy the proper one that even makes your bed look better and well-off.

Rug – Rugs, are in home décor trends since long. Rugs add a different look to the flooring. You can use it in the living room and when wanting a change you can stir it to your bedrooms.

Counted as one of the best dealers of Flats in Zirakpur, we consider that filling out your home with fewer elements is better than overloading it and creating a spate.




There Is No Place Like Home

Home is a place that fills you with joy and delight. A residential property is one of the biggest happiness of life. It is a dream to have a home welcoming you when you return. You may spend maximum time traveling, but at last, you will get pleasure at home. The fascinating thing about a home is that it holds you with same love at your best and at your worst. Home is the biggest investment and one should look for the best and then put money into it.

Bhatia Real Estate, values  clients and their concern towards the residential property. Among the best property in VIP Road Zirakpur, we consider that consumers should not make any hurry in investing into the residential township. People should go through many residential properties and know what are they offering. At the present time, there are many latest facilities making their way in the real estate industry.

Counted as best property dealer in Chandigarh Zirakpur, we aim at giving the best services to our clients. We have all the latest facilities and amenities for the consumers. There are a plethora of reasons to invest with us, for instance, we offer best residential and commercial properties and our projects are located at supreme locations. We have easy financing options, and follow solid paperwork along with  hassle-free and tremendous infrastructure that makes it the best option for buyers.

Our motive is to expand our business projects by keeping the customer delight at top level. We work with a vision of providing the best and every kind of facilities to the clients. Nothing can be more beneficial than owning a ceiling over your head. We are here to help in every aspect to find a perfect home for you. It’s our belief that nothing can beat the charm and pleasure of a home, sweet home.

Vastu Shastra Tips For Temple at Home

Best property in Chandigarh Zirakpur

Vastu Shastra Tips For Temple at Home

A temple is a place where we all worship God. It is a place filled with peace and positivity. People have separate Puja room in some places while in a metropolitan city that is not possible due to compact spaces. Vastu Shastra is followed by many people in the country. It’s a belief that Vastu Shastra brings happiness, health, and prosperity to the house and its members. People trust it a lot, especially when it comes to a Puja room or spaces.

Bhatia Real Estate believes that Vastu Shastra has an important significance in terms of placing a holy place in the house. We provide best property in Chandigarh Zirakpur and  believes that a temple placed with right Vastu Shastra gives full energy and divine at home. Here are a few tips that one can use to settle a shrine at home according to Vastu Shastra –

1 The ideal direction of the holy place – northeast part of the homes is best to keep your temple. Jupiter is known as the lord of northeast direction. The northeast direction is also known as Ishan Kona, whereas Ishan means God o Ishwar. It brings prosperity and good health. You can also place your temple at the center of your home. The point is called Brahmasthan, that is said to be auspicious and adds Dhamani.

2 How to construct a temple at home – if you are constructing a temple at home do not place it on the floor. Keep it on a raised platform. Avoid temples made up of glass, instead, make a temple or marble or wood. Ensure that every ideal of God placed in the temple is not broken or damaged at all. It is said to be inauspicious. Keep your temple neat and clean it gets a healthy flow of energy and happiness in the house.

The RERA registered property dealer in Zirakpur further add that there two ideal things that should be kept at priority while making a temple in the house. This will always maintain positivity and happiness in the house and will bring health and prosperity to members residing in it.

5 Tips for Wise Home Selection

Luxury homes are in great demand today. People are ready to make the biggest investment of their life and own a luxury home. Sometimes people make hurry to make an investment and later regret. Before putting your money in any luxury home people should go through several factors.

At Bhatia Real Estate, we believe all that glitters is not gold. Offering the best Flats in Zirakpur, we think that consumers before investing in any residential property should check every important aspect of their checklist and then proceed further. Here are a few tips that every consumer should follow before buying any luxury home –

1. Do not make hurry – Take as much time you need to find a perfect home. Do not make hurry in owning a home. You may look 2-3 homes and make the decision for buying residential property and may ignore better options in hastening. Or may what you buy in a rush do not turn out to your expectations later.

2. Hire a local broker – Try to work with an agent who is familiar with the location where you want to buy a home. A local agent can help you find the best home for all your requirements.

3. Go beyond the photos – Do not make your investment on the basis of photographs. There are many situations when a home may not look very pleasing at photographs. On the other hand, you may like a home that looks pleasing in photos, but in actuality may not be like that.

4. Document everything – Today it’s very important to document every deal. It will help you from being cheated. Some people try to avoid documentation to hide money to the banks in that case financial certification is critical.

5. Link with the trusted bank – while making financing go to the bank has good relations with you. Dealing with a bank for many years help you during investing in residential property. They have your portfolio and will help you get the loan or finances easily.

Best Property Dealer In Chandigarh further adds that people should examine the property deeply before making any decision. We want our clients to make good relations with our company and clarify any doubts they have. Our company provides best luxury homes for our consumers and crack deals with complete transparency.

Tips to make the most out of your balcony


A home gives you a pleasure to relax and enjoy yourself. People spend their maximum time transforming their home differently to give a new look. It also helps in adjusting the thing to make more out of a particular place. The balcony is always used as a link between indoor living space. It makes the room look much larger, open and airy. People use balconies for plantation, transforming it into small gardens. People who stay a lot at home, when needs refreshing air prefer sitting outside their balconies.

At Bhatia Real Estate we consider that balconies enhance your living spaces. Being the best property dealer in Chandigarh, we think people need to know how they can utilize the balconies in the best way. Here are a few tips that can help people make the most of their balconies.

Use it vertically – People fond of gardening can use plants in their balcony. If you do not have much space you can use small planters and hook them to the wall or hang to the ceiling.  People can also enhance the balcony by putting outdoor string lights on the wall or planters.

Avoid plantation overload – People always overload their balconies with big plantations. This covers the maximum space of the area and at the same time require more maintenance. On the other side, a middle part of the balcony is known to be the weakest so before doing plantation one should consult a structural engineer and know how much weight your balcony can carry.

Wise selection of furniture – Remember the durability of your home while selecting furniture. If one does not have much indoor storage space, the furniture is likely to remain outside. People should go for FOLDABLE furniture as that can be used according to one’s needs. It can be opened, folded and easily carried out anywhere.

Best colour scheme – people should go for bright colours, for instance, white or yellow in the balconies. If the wall is painted with bright colours where maximum light falls, it creates the illusion of bigger space.

Bhatia Real Estate believes that utilizing your empty gap gives you the benefit of adding maximum things in your living space. The residential dealer is one of the preferable real estate dealers in the town. We deal with residential and commercial property and make you buy your home or office spaces in projects like  Chandigarh Citi Center and Sushma Residential Flats in Zirakpur amongst many.

Property Dealers Emphasis on Infrastructure in Real Estate


Before making the decision of purchasing a home people first see the infrastructure. Infrastructure has a massive impact on a residential property purchase. There are many consumers that buy a home for lifetime living. In that aspect, they always want to invest in a property that is well-constructed with the proper facilities and amenities.  Robust infrastructure sustains facilities for health, safety, and recreation.Consumers before buying any residential property look for developed infrastructure.

At Bhatia Real Estate, we ensure that our infrastructure is well constructed and maintained in order to meet our customer needs. People invest a lot in buying a home. We truly believe that residential property is the biggest investment for buyers and we value their efforts. For our customer betterment, we have designed our infrastructure with finest skills and artistry of best architects.

Named among best property dealer in Chandigarh, we propel that the development of infrastructure makes the life of consumers more comfortable.  Along with infrastructure the company aims at providing the consumers with top-class facilities, for instance, best living spaces, proper housing services, availability of basic amenities. We have several residential as well as commercial property project all around the globe. Top projects of the company are Chandigarh Citi Center and Sushma Residential Flats in Zirakpur that are providing the best residential and commercial facilities in the town. We aim at building quality projects for our clients and provide better housing facilities.

Our motive is to guide our clients with best residential solutions and help them find their dream home. We assume that home is where your heart is. Bhatia real estate is a growing residential property dealer that has become the top choice for consumers in the city wherein we want to our consumers to live a comfortable And pleasing lifestyle.

Check list: Things to keep in mind when buying a home post-RERA

There’s a new box to check when you’re house-hunting. How soon will the project be registered under RERA?

On May 1, Maharashtra joined a small community of states that have notified the Real Estate (Regulation and Development) Act aka RERA. All developers with ongoing projects must now apply to the regulatory authority to register them, within three months.

Once registered, they must upload project details on the RERA website ( and provide quarterly updates on construction progress as well as commencement, occupation and other certificates required before flats are handed over to buyers.

“Developers could now begin tweaking projects or changing construction plans to get all approvals in place,” says Siddhart Goel, senior director for research services at realty consultancy Cushman & Wakefield India. “As realtors incur these capital costs, especially during the construction phase, property prices could go up. Smaller developers could merge with other players or hand over projects, so buyers could also face situations where the brand they invested in is no longer managing the project.”

Ups and downs

On the face of it, construction companies have welcomed the Act, saying they look forward to the transparency it will bring to a sector plagued by mistrust because of the misdeeds of a few.

The Act’s immediate impact, though, cannot be overlooked, they add.

“As projects without the correct approvals will be withheld entry into the market, it will result in a drop in supply,” says Dharmesh Jain, president of developers’ umbrella trade body MCHI-CREDAI. “Developers will bear the cost of delays as they wait for registration and remain unable to sell units in unregistered projects. This could subsequently increase costs for the buyer.”

Compliance could take time, concurs Nishant Deshmukh, managing director of Sugee Group. “In the middle of the project’s life, if we have to rework the cash flows — given the rule about depositing 70% of funds in a dedicated account to ensure availability of resources for timely completion and delivery — this could hit the project’s profitability and also raise prices.”

As for proposed projects, there could be delays in getting started.

A single window could help ease their woes. “We already have to run from one window to another for approvals, and RERA may add to the list and make things even more tedious,” says Deshmukh.

Some builders are concerned that RERA could hit their marketing and sales strategies too.

RERA states that, starting May 1, developers cannot advertise under-construction projects until they have obtained completion and occupancy certificates.

“There will be a delay in sales and marketing, confusion among buyers and delays in buyer decision-making as a result,” says Ravindra Pai, managing director of Century Real Estate.

Minimise the risks

If you are considering buying a home, ensure that your developer has applied for RERA registration, says Ramesh Nair, CEO and country head at realty consultancy JLL India.

“As a rule of thumb in selection of developers, only the strong and reputed ones with sound financial status and established track record will have the capacity to comply with RERA,” Nair adds. “Buyers should therefore focus on projects by such builders, of which most cities have a decent share, and avoid unknown players who will likely exit the market soon.”

“Monitor your developer’s performance on a regular basis and don’t hesitate to file a complaint under RERA should you see any discrepancy,” adds Goel of Cushman and Wakefield.


What defines a luxury home? It’s a different answer in every country

Luxury means different things to different people.

“Proximity to nature, interestingly, remains a constant — it’s the sea for some, hills, greenery or golf links for others,” says Tushad Dubash, director of Mumbai-based Duville Estates developers.

While seniors around the world tend to prefer standalone luxury residences with backyards, young couples and singles alike prioritise condos where maintenance is managed by someone else, and want smart home features such as home automation systems, remote lighting controls and wine rooms.

A report by Sotheby’s International Realty called ‘Global Affluence: The Emerging Luxury Consumer’ released last month talks about the changing luxury real-estate scenario in the world.

It highlights the confidence, spending habits and purchasing interests of emerging luxury consumers from around the world.

“We focused on luxury consumers in the US, UK, UAE, India and China,” says Ankit Tyagi, COO of Sotheby’s International Realty India. “We found that, in contrast to India, consumers in markets such as the US and UK focus on condos in skyscrapers with stunning views.”

Luxury real-estate is growing fast in India, Tyagi adds. He attributes it to the fact that the number of high- and ultra-high-net-worth individuals has jumped by 330% over the past 10 years — against a 68% rise globally.

And it is not just HNIs or UHNIs that aspire and invest luxury in the country, says Reema Kundnani, vice president, head – Marketing, Corporate Communications & Luxury Residential Sales, Oberoi Realty.

“We are very aspirational and seek all the amenities at homes as our income increases. A lot of young Indians are investing in luxury properties across the country. Grand architecture, high-tech security and app-based operations are among what consumers look for in luxury homes.”

The luxury map

Borders are fading in interesting ways, when it comes to luxury real-estate. “Many luxury homebuyers are investing in properties outside their home country, because they travel frequently or have children studying in these locations,” says Tyagi of Sotheby’s.

Even when they buy at home, they’re looking for projects that offer them the sense of being a global citizen.

In the US, luxury means a front yard, a backyard, a driveway and an open kitchen since families like to cook together on weekends.

Indians are increasingly opting for European, Singaporean, Spanish and Mediterranean-themed luxury projects.

Indians continue to be more brand-conscious too. “In the US, luxury homes usually consist of a front yard, a backyard, a driveway and an open kitchen since families prefer to cook together on the weekends,” says Kundnani of Oberoi Realty. “In India, people like to have a developer who has hired an architect from the US, a contractor from Korea and a consultant from UAE.”

Some things haven’t changed. Location remains a key selling point. And old favourites continue to dominate.

In London, for instance, there is still no better address than Hyde Park. In California, true luxury can only mean Beverly Hills.

A decade from now, there may be new names on this list though. New Dubai is already a force to contend with on the global luxury real-estate rankings. And a report by Knight Frank released last month shows luxury real-estate prices soaring in China’s third-largest city, Guangzhou.

Source: HindustanTimes

Will falling interest rates save India’s residential market?

India’s property market faces a worrying rise in unsold inventory, after a spectacular house price boom over the past three years. Sales in India´s top eight cities fell by 4% in June 2015 compared to June 2014, with unsold inventory rising 18% during the same period, according to property research firm Liases Foras. 2015 ended with lower new launches and sales volumes, at 240,360 and 261,260 units, respectively, across the top eight cities.

According to Knight Frank, unsold inventory has now reached:

  • 206,000 units in the National Capital Region (NCR)
  • 181,000 in Mumbai
  • 100,000 in Bengaluru
  • 63,000 in Pune
  • 41,000 in Ahmedabad
  • 36,000 in Chennai
  • 36,000 in Kolkata
  • 31,000 in Hyderabad

Growth in the Reserve Bank of India’s nationwide housing price index slowed to 13.7% (8.7% inflation-adjusted) during the quarter ended September 2015 compared to the same period in 2014 – down from a 17.5% rise in Q1 2015 and 14.5% in Q2 2015.

All major cities, with the exception of Chennai and Bengaluru, exhibited slowing momentum:

  • Prices in Delhi rose 21.9% (16.5% inflation-adjusted) year-on-year in Q3 2015, slower than the first and second quarters’ 26.5% and 22.7%, respectively.
  • In Mumbai, house price rises weakened to 10.8% (5.8% inflation-adjusted) from 11.0% in Q1 and 11.1% in Q2.
  •  In Ahmedabad, growth slowed to 7.4% (2.6% inflation-adjusted) from 9.2% in Q1 and 7.4% in Q2.
  • In Kolkata, growth was 7.1% (2.3% inflation-adjusted), down from 32.4% in Q1 and 19.1% in Q2.
  • Prices in Kochi even fell by 7.2% (-11.3% inflation-adjusted)
  • Bangalore price rises, on the other hand, have been gaining momentum from 10.0% in Q1 and 15.5% in Q2 to 19.1% (13.8% inflation-adjusted) in Q3.
  • Price growth in Chennai is also impressive at 12.4% (7.4% inflation-adjusted) in Q3, up from 4.9% in Q1 and 3.8% in Q2.

“While stated prices remain elevated, transaction prices have already fallen by 10-15%,” said Saurabh Mukherjea, CEO of institutional equities Ambit Capital. “Discounts have increased significantly in the secondary market and distress sales are becoming increasingly common.” Developers operating in Mumbai and Delhi, where prices are the highest, will particularly experience more pressure on sales and cash flow, according to Moody’s.  Based on Ambit Capital’s research, it will take around 11-14 quarters to clear the inventory in these areas.

Pankaj Kapoor, managing director of Liases Foras, points out that demand for real estate has been stagnating because during the last decade property prices have risen strongly, while salaries have not kept pace. Houses have become unaffordable, so sales aren’t picking up. Sanjay Dutt of Cushman & Wakefield says the situation may take two more years to stabilize, with the green shoots becoming visible after a year.

Although the Reserve Bank of India (RBI) implemented monetary easing during the first half of 2015, this has not yet had a significant impact on the mortgage market. Bank lending to the real estate sector rose by just 7.5% during the year to May 2015, against overall bank lending growth of 8.5%.

Nonetheless,Vikas Halan, Moody’s Vice President and Senior Credit Officer believes that despite the difficulties, India´s solid economic growth will provide some support to housing sales and the gradual easing of lending rates will also boost investor confidence and activity.

“Cuts in interest rates by the Reserve Bank of India, if passed on by the banks, will filter down to the property market, reducing the cost of borrowing for developers as well as buyers, and supporting demand,” says Halan.

Rental yields are low

Rental yields in India are low, according to Global Property Guide research.

  • In South Mumbai, average yields range from 2.2% to 2.3% gross, even lower than a year ago.
  • New Delhi rental yields remain very poor, at between 1.9% and 2.1%.
  • Bengaluru registered higher yields ranging from 3.7% to 4.4%, but are still much lower compared to the figures registered in 2007, ranging from 7.2% to 10%.

Yields data from real estate company Magic Bricks paint the same picture:

City Rental Yield
Delhi 2.76%
Mumbai 2.55%
Bengaluru 3.68%
Pune 2.79%
Chennai 3.16%
Kolkata 3.86%
Hyderabad 3.71%
Source: Magic Bricks

As Ambit Capital notes, if the Indian real estate market was correctly priced, the rental yield should tend to be somewhere close to the cost of borrowing. Instead, Mumbai, for example, has a rental yield of around 2%, while the lending rate is around 10%.

RBI cuts interest rate by 25 bps

The Reserve Bank of India (RBI) cut its policy interest rate by 25 basis points to 6.5% in April 2016, in line with the reduction expected by economists after inflation slowed to 5.18% in February. Interest rates are now at the lowest level since 2011.

India´s central bank governor Raghuram Rajan has said that the bank´s monetary policy stance will remain “accommodative”, raising the prospect of another cut later this year.

Since January 2015, the central bank has reduced its policy rate by 125 basis points. Butwhile the cuts have helped improve sentiment, banks have been very reluctant to lower rates for borrowers, complaining of tight cash conditions.

To make policy rate cuts more effective, the RBI has taken steps to increase liquidity by:

  • reducing banks’ reserve requirements
  • raising the reverse repo rate – the rates lenders charge to the central bank
  • pledging to inject more long-term liquidity over the next 12 months

The RBI had also invoked new rules forcing commercial banks to set lending rates in accordance with those of the RBI.

Is Indian economy the world´s fastest-growing, or are the numbers wrong?

The Indian economy expanded by 7.3% during FY 2014-2015, according to the Statistical Office – the fastest rate of economic growth in the world, coming just as the Chinese economy is losing steam, with its annual growth slipping to 6.8%. The same organization forecasts growth of between 7-7.5% for India in 2016-17.

However not everyone is convinced. The figures, which are based on a new methodology, raised eyebrows from several institutions including the Reserve Bank of India. The new methodology instantly raised India’s GDP growth from 4.7% to 6.9% for FY 2013-2014, according to Arvind Subramanian, chief economic advisor to the government of India.

“Some observers feel the figure is inflated, and that sectors like IT are booming while core fundamentals like agriculture and industrial manufacturing aren’t performing as well: In other words, India´s economy may look better on paper than it feels to a lot of Indian citizens,” said Jonah Blank, senior political scientist at the RAND Corp.

The Reserve Bank of India is now attempting to get a more accurate picture of the health of the economy through hybrid models that mix elements of the old and new GDP methods.

The Statistical Office, however, assures the fitness of its data. “You have to understand the new GDP data essentially captures efficiency, says Ashish Kumar, former head of the CSO. “Comparing it with volume-based indicators would be a mistake.”

Indian mortgage market growing

Given the boom of the past few years, the rapid growth of India’s mortgage market is no surprise.  The combined portfolios of banks and specialized housing finance companies catering to the housing market have increased 20% CAGR over the last decade. Banks’ have made USD 142 billion of real estate loans, according to Ambit Capital.  Housing Finance Companies have an exposure of USD 68 billion to the real estate sector.

Total housing loans in India amount to around INR12 trillion (USD 180 billion), slightly less than 10% of GDP. This is still small compared to, for instance, China’s at 20% of GDP, the UK’s at 88% and US’s at 81%.

How fast was expansion last year?  Reliable data on home loans is unavailable. However, according to Housing Development Finance Corporation (HDFC), India´s largest mortgage company, made INR 130 billion (USD 2 billion) of loans in 2015, up from the INR 86 billion (USD 1.3 billion) worth of loans in 2014 and INR 33 billion (USD 500 million) in 2013.

Regional Markets

India’s property market can be divided into three segments:

  • Delhi-NCR and Mumbai, most affected by oversupply;
  • Bangalore and Pune, where sales are lagging but healthier;
  • Tier-II or small cities and towns, which are mixed.

Delhi-NCRThe Delhi-NCR property market is now struggling in the midst of an inventory overhang. The investors who used to dominate the market have started to flee, with some entering a “distressed resale” mode, offering a 15-20% discount on the primary market price. Around 48,800 units were sold in NCR in 2015, a surprisingly small improvement over 2014, according to Knight Frank.

“NCR has certain systemic issues because the market is built on speculative ground and the basic financial and execution discipline required by a developer is absent. The only trigger that will get NCR back on its feet is execution and delivery,” said Jasmeet Chhabria, managing partner at ARGIL Advisors LLP, an affiliate of Religare Global Asset Management.

Developers have been restricting new launches, which stood at only 63,460 units in 2015, down 20% y-o-y and the lowest figure since 2010.

No new major projects are being launched in the city except for a few redevelopments, according to Colliers. Ongoing projects expected to come online by end-2016 to end-2017 include:

  • DLF Ltd.’s DLF Kings Court in Greater Kailash at INR 40,000 (USD 602) per sq.ft.
  • Aarone Group’s Botanica in Neeti Bagh at INR 35,555 (USD 535) per sq.ft.
  • Parsvnath Developers’ Parsvnath Paramount in Ashok Nagar at INR 18,000 (USD 271) per sq.ft.; and Parsvnath La Tropicana in Civil Lines at INR 17,000 (USD 256) per sq.ft.


The picture is not any better in Mumbai, with new launches dropping by 23% to 20,776 units in the second half of 2015 compared to the same period in 2014 – the lowest H2 figure since the financial crisis, according to Knight Frank. Builders have put new projects on hold while trying to rid of old inventory.

“It s a tough market. Even though builders may not be giving discounts openly, behind closed doors, negotiations are on,” said Colliers India director Arvind Kapoor.

Despite the festive season, sales in Mumbai have fallen 6% y-o-y to 34,135 units in the last six months of 2015, according to Knight Frank.

Projects expected by Colliers to be completed by 2017-2019:

  • Kanakia Spaces’ K-14 project in Bandra West at INR 65,000 (USD 978) per sq.ft.; and Kanakia Paris in BKC Annexe at INR 23,500 (USD 353) per sq.ft.
  • Rustomjee’s Seasons in BKC Annexe at INR 27,300 (USD 411) per sq.ft.
  • Radius’ Project Bandra in BKC Annexe at INR 26,900 (USD 405) per sq.ft.
  • Ahuja Group’s Altis in Worli at INR 24,000 (USD 361) per sq.ft.


Interest from the developer community seems to be shifting away from the major cities of Mumbai and Delhi, to cities like Bangalore. Bangalore´s rise is due to the e-commerce boom and the IT sector, and the city is still relatively affordable. Although new launches in Bangalore fell by 26% y-o-y in H2 2015 to 24,190 units, they were 16% higher than in Mumbai, according to Knight Frank.  Sales were up by 25% compared to H1 2015.

“With 31% of overall India launches in April-June, Bengaluru has left the NCR (25%) behind for the first time in recent history,” says Anuj Puri, Chairman & Country Head, Jones Lang LaSalle (JLL) India.

Ongoing projects coming online in Bengaluru between end-2016 and 2019, according to Colliers:

  • L&T Realty’s Raintree Boulevard in Sahakar Nagar at INR 6,900 (USD 104) per sq.ft.
  • Sobha Developers’ Sobha Forest View in Lingadheeranahalli at INR 6,109-6,950 (USD 92-105) per sq.ft.
  • Brigade Properties’ Golden Triangle in Budigere Cross at INR 5,400 (USD 81) per sq.ft.
  • Prestige Developers’ Lakeside Habitat in Varthur at INR 5,220 (USD 79) per sq.ft.
  • Godrej Properties’ Godrej E City in Electronic City at INR 4,450 (USD 67) per sq.ft.


Its proximity to Mumbai and its affordability encourage growth in the Pune area. Both new launches and sales rose in the second half of 2015, according to Knight Frank. A total of 18,135 units were launched in H2 2015, up 9% compared to H2 2014; while 20,740 units were sold in the same period, up 3% compared to a year ago.

“Pune is the only city that has shown double digit price appreciation in the last two years,” says Ashutosh Limaye, Head of Research & Real Estate Intelligence Services, JLL India.

Projects set for completion between 2016 and 2018 include:

  • Supreme Universal’s Supreme Estaban in Koregaon Park at INR 16,200 (USD 244) per sq.ft.; and Supreme Amadore in Baner at INR 9,000 (USD 135) per sq.ft.
  • Kool Homes’ Blue Lotus 2 in Sopan Baug at INR 9,500 (USD 143) per sq.ft.
  • Kolte Patil’s K P Heights in Kothrud at INR 9,000 (USD 135) per sq.ft.
  • Naiknavere Group’s Eminence in Viman Nagar at INR 8,900 (USD 134) per sq.ft.


Sentiment in Hyderabad’s residential market nosedived during 2010-2014, in advance of the bifurcation of Andhra Pradesh. However the city is getting renewed attention. In the second half of 2015, 5,740 units were launched, up 11% compared to the same period in 2014, according to Knight Frank. Unsold inventory shrunk to 31,480 units, the lowest since 2010. Cushman & Wakefield expects 45,000 residential launches in Hyderabad over the next two years.

“All the negative factors are behind us and buyers are now more confident about acquiring property in the Hyderabad market,” says C Shekar Reddy, president of Credai.

Developers are also optimistic about the launch of the metro rail project.  Demand is expected to exceed supply in the INR 3,000-4,000 (USD 45-60) per sq.ft. property segment, most of which lies along the metro rail corridor, according to Reddy.


Ahmedabad, the largest city and former capital of Gujarat in Western India, has been unable to sustain buyer momentum, despite the Gujarat International Finance Tec-City (GIFT) and the Delhi-Mumbai industrial corridor.

Sales volumes has been heading down since the first half of 2013. In 2015, only 16,800 units were sold, 9% down on to2014 and the lowest volume in 6 years, according to Knight Frank. New launches, however, rose 11% in 2015 to 15,500 units – creating additional oversupply.


Both the primary and secondary markets of Chennai, another significant beneficiary of e-commerce investment, have been resilient. Sales declined 15% y-o-y in H2 2015 to 8,792 units; but the market’s health has been improving, according to Knight Frank. Unsold inventory has been inching down since the beginning of 2015. Interest in micro markets such as Velachery, Sholinganallur and Mount-Poonamallee High Road (MPR) has risen despite recent floods, according to Colliers.

Notable ongoing projects that should finish by Q1 2016-Q4 2018 include:

  • Ozone Developers’ Ozone Metrozone in Anna Nagar at INR 10,990-15,990 (USD 165-240) per sq.ft.
  • Olympia Group’s Olympia Opaline Sequel in Navalur at INR 4,700 (USD 71) per sq.ft.
  • BSCPL’s Bollineni Hillside in Perumbakkam at INR 4,100 (USD 62) per sq.ft.
  • Mahindra Lifespaces’ Aqualily in Singaperumal Koil at INR 3,850 (USD 58) per sq.ft.
  • Pacifica Companies’ Aurum in Padur at INR 3,670 (USD 55) per sq.ft.

An activist government with a social agenda for real estate

Prime Minister Narendra Modi’s government has been extremely active since taking office in 2014 in pushing policies to develop the housing market, reduce housing shortages for the poor, and promote affordability.

Housing for All

The Modi government has launched a massive set of schemes under the umbrella title “Housing for All by Year 2022”. The government has identified 305 cities and towns in 9 states for beginning construction of houses for urban poor by means of public-private-partnership (PPP) and interest subsidies, on which it intends to spend US$30 billion over the next six years. It will lower developers´ borrowing costs and increase homebuyer loan limits for affordable housing from INR 2.5 million (USD 38,000) to INR 6.5 million (USD 98,000) in metropolitan cities and to INR 5 million (USD 76,000) in other cities.

Smart Cities

The “Smart Cities” initiative was launched two months after Modi took office, and was allocated INR 70 billion (USD 1.05 billion) in the recent budget. The project aims to create large-scale urban areas that can attract investment and provide high quality living standards. The government aims to identify 100 cities for potential development by 2017. Each city will receive a INR 1 billion (USD 20 million) grant per year over a five-year period, according to JLL India.

Real Estate and Infrastructure Investment Trusts (REITs)

First proposed in 2008, REITs were only permitted in India in 2014. It is expected that the country´s first REIT will be launched in the first half of 2016, with large organizations such as DLF, Blackstone and Brookfield already expressing interest. The REIT industry has the potential to reach a market capitalization of USD15 billion in three years, according to JLL India.

Real Estate (Regulation and Development) Bill

First proposed in 2013, the bill aims to establish a regulatory authority to protect buyers, provide a platform to settle disputes, and impose strict penalties on developers for non-compliance with project registration and disclosure of wrong or misleading information. Moody’s believes the bill will lead to increased consumer confidence, transparency and industry discipline.

SBI home loan at 8.35% interest rate: What you should know

Eligible borrowers of SBI home loans can also avail an interest subsidy up to Rs. 2.67 lakh under the Pradhan Mantri Awas credit-linked subsidy scheme.

In line with the government’s push on affordable housing, State Bank of India or SBI is offering an interest rate of 8.35 per cent on home loans up to Rs. 30 lakh. Eligible borrowers of home loans from SBI, which last month cut its home loan interest rates to the lowest rate in the market, can also avail an interest subsidy up to Rs. 2.67 lakh under the ‘Pradhan Mantri Awas Yojana’, a government scheme aimed at providing subsidised housing loans to the low and middle income groups. Also, customers of other banks can also transfer their existing home loans to SBI at “no processing fee charges!” according to an advertisement by SBI.

The revised rates are effective on new home loans from May 9, 2017. The rates are:

Two year fixed interest rate home loans up to Rs. 30 lakh:

For salaried:


Borrower type

Effective rate of interest





For non-salaried:






Affordable housing push

“With a drop in interest rates and significant interest subsidy benefits offered by the Government of India, the affordable housing segment is poised for a major leap forward in the near future, with projects specially designed for the middle and lower income segments,” SBI said.

Home loan borrowers buying their first home are eligible for subsidy on interest repayments under the Pradhan Mantri Awas scheme, which is a credit-linked subsidy scheme run by the government. National Housing Bank or NHB has come up with operational guidelines for availing subsidy under Pradhan Mantri Awas Yojana (Urban) for middle-income groups.

SBI is offering home loan takeovers without any processing fee till June 30, 2017. This facility is applicable on home loans from scheduled commercial bank, private and foreign banks and housing finance companies (HFCs) registered with the National Housing Bank (NHB), among others, SBI said.

SBI has also launched a mobile app – SBI Loans – that enables customers to check loan eligibility and apply for home loans online. The SBI Loans app is available on both Android and iPhone platforms.

Source: NDTV Profit

Home loans: Longer tenure ones are the best bet

A longer tenure home loan gives the borrower a higher home loan eligibility, along with flexibility in repayment and income tax benefits.

Until a few decades ago, Indians were generally averse to taking loans to buy or construct their homes and would use their retirement funds for the same. However, with increasing urbanisation, easy availability of home loans and higher earnings of the family as a unit, this trend has changed. Now, many individuals are buying their first house even before marriage, by availing home loans.

Nevertheless, most borrowers feel that that they should opt for short tenures on their home loans, to be free from debts quickly, without realising the implications. On the contrary, one should opt for home loans with a long tenure of up to 20 years or 30 years.

Here are some of the advantages of doing so.

Higher loan eligibility

An individual’s home loan eligibility, is determined on the basis of his/her ability to repay the home loan every month, in the form of equated monthly instalments (EMIs). This, in turn, is assessed on the basis of your disposable income. So, for a shorter home loan tenure, all things being equal, your EMI will be higher and thus, you will be eligible for a smaller home loan amount as compared to what will be available, if you opt for a longer tenure home loan. Consequently, with a longer tenure and thus, higher eligibility, you may be able to buy a bigger or better house, than what you can with a shorter tenure home loan.

Flexibility of repayment

As there are no penalties on the prepayment of home loans under a floating rate of interest, you can prepay the entire outstanding or part of the home loan, if you want to sell the house or just be free from any debts.

If you have taken the home loan under a fixed rate of interest, from any housing finance company, you can still prepay the home loan without any penalty, as long as you are not borrowing from another institution.

Moreover, if your home loan is under a fixed rate of interest, you can still repay a certain percentage of your home loan outstanding every year, without any prepayment penalty. Thus, you can become debt-free earlier, while retaining the flexibility of making payments according to your cash flow.

Income tax benefits

Section 24b of the Income Tax Act, provides benefits on the interest payment on home loans. The effective home loan rate of interest, after taking into account the tax benefit, is better than what one can earn on any other alternative investment avenue. Moreover, as there are no alternative tax benefits that are as efficient as that on home loan interests, it is advisable to avail of this benefit for as long as you can.

Section 80C also allows for a deduction of up to Rs 1.50 lakhs, for repayment of the principal component of a home loan. Nowadays, the quantum of home loan that is needed to buy a decent property, is fairly large. The principal component, in the home loan repayment, will be higher for a shorter home loan tenure, as compared to a longer-duration home loan. Consequently, a significant portion of the home loan repayment will be wasted, as you would not be able to claim the deduction under Section 80C beyond the specified limit, in case you opt for a shorter home loan tenure.



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