Nowadays no business can predict or prepare for the kind of colossal disturbance that coronavirus eruption has provoked. As a declaration of housing affordability in 2019, apparent growth in a market and where for 2020 real estate experts forecasting that prices of house will only rise by 2.8%. The worldwide fiscal strike due to the covid19 pandemic is probable to effects negatively on real estate demand in the country this year. Developers are likely to offer perk with Flexi payment plans to purchasers for investing in the midway fragment.
Nevertheless, with all crises, this epidemic besides can fling up opportunities for purchasers as numerous cash-starved developers with unsold inventory may be enforced to sell at cut-rate prices.
For the relief in the real estate segment, RERA government announced to extend the deadline for completion of real estate projects in the state for six months in the assessment of interruptions triggered by the coronavirus. The fretful extension also provided to such projects which get benefits for a one-year extension as provided in the RERA Act on or after March 25, 2020. As per the government, a new announcement for the financial package will help us for the bounce-back market 2020.
Land demand can increase as many of the builders will get relief in possession for project completion, extension in property tax as well as a reduction in taxes as well. As the demand is increase for affordable housing which ultimately grows plea of residential lands. Comparatively, Covid19 impacted cruel on other all countries than India; with the reason, NRI people have started to find their own house in India for healthier living.
For Affordable land parcel will be booming in the upcoming days as so far concerned about covid19 affect individuals, people have spent time with families during the lockdown, systematized real estate has noticed a growing interest from purchasers. As well as NRI people take interest in e-visit and presentation with Digi-connect from real estate consultants and developers. Lockdown era has tilted the decision making for owning a house instead of renting it in people minds. In addition, the government has provided relief to the people for loans and property taxes caused by coronavirus.
Demand seems to pick up across India for affordable parcel land indirect demand increase for residential affordable housing noticed by real estate people.
Besides, with the recent rates hereafter predictable to increase owing to an enormous restrained demand once the lockdown layover. Evolving the commercial segment expected to boost corporate building and corporate offices for their individual separate spaces for defenses and work privacy.
As per my survey, in Ahmedabad from 2008 to 2015 land demand was high in surrounding areas from Ashram road to SG highway as per commercial and residential requirement and after 2015 growing areas like Gota, Science city, Bodakdev, Thaltej, Sindhubhawan road, Iscon -Ambli Road, South Bopal and many more locations arises with high demand in terms of residential and commercial properties so demand increased directs in land in these locations.
If we talk about land title in Ahmedabad most of the lands are title clear. Processes like to get land N.A, CCP opinion, Plan sanctioned, Abhipray, environment clearance and all other process is single window clearance which is time-saving and beneficial for the developers. Hence it becomes much easier for the developers to purchase the land here and start the project on time.
Emphasized on the industrial sector, supply chains in China are disordered due to all unforeseen situations. Due to this manufacturing and distribution, the supply chain network critically affected to all large scale countries. Due to all disruption trade clashes increases and impact on supply chain network which diversifies manufacturing bases away from China to other countries and India as well. As it increases demotion from China most all the countries across the world, India can become a favored endpoint for manufacturing companies. Utmost of the companies planning to shift in India, so far the demand for industrial land would be increase.
Rather focus on covid19 if we look in other aspects and let’s talk about Gujarat, Ahmedabad has a number of well-developed localities for property investment not only for property investment furthermore attract good values in return. Ahmedabad is growing fastest into one of the profitable real estate markets in India. Some moves such as RERA compliance and demonetization favorable phases for increased property sales in the past few quarters in Ahmedabad. Post RERA populaces have put trust in the real estate market and the demand for property for sale is increased in Ahmedabad. The project of smart city Ahmedabad moving towards to compete strappingly with other metro cities such as Bengaluru, Mumbai, Pune, Kolkatta, Delhi, etc. Considering the main reason is commercial growth in Ahmedabad which yields great returns in coming epochs to investing in this city. Many new and large industries and corporate companies setup their BPOs, KPOs, IT companies, multinational companies as well as warehouses, and dormitory in Ahmedabad as well as in entire Gujarat. As many of the large-good companies already setups their plant and corporate offices entire Gujarat in metro cities probability of demand will increase for land as large companies planning to move from china with prospects for revamping.
The price of land parcels would be steady as per the current scenario. However the demand in affordable housing for residential and industrial land for industrial developments of the area but as so far we concern about Covid19 effects the prices would be stable as of now and it will increase in the future.
In Ahmedabad, land market prices of land are measure on the base of road width. Below is the difference I found as per my experience in land prices:
In Ahmedabad Zones are divided as R1, R2, R3, and affordable wherein R1 zone 4 FSI is available, In R2 Zone FSI from 1.8 to 2.7 can be used, in R3 Zone in Hotel – Hospital policy 4 FSI can be used above 30 meter road and in affordable zone 2.7 FSI is available. In all above zones builder can also get extra FSI which they have to purchase called TDR (Transfer of Development Rights).
(TDR) means making available certain amount of additional built-up area in lieu of the area relinquished or surrendered by the owner of the land, so that he can use extra built-up area either himself or transfer it to another in need of the extra built-up area for an agreed sum of money.
As per my research in land market land prices are increasing year by year. I would like to suggest to the investors to invest in land for gaining good returns in the future with the patience of holding the land parcel for 2 to 5 years of tenure to get the best profit.
As per my analysis, few of the areas for land prices are booming since the last 6-7 years. Exploration of my research says that people have invested in below areas and they have gained 2 to 3 times more return as of now. And, in the coming years when the TP finalized and applicable in these below areas, the rates will be increased then as of now.
In Ahmedabad, there are also so many good plotting schemes for investment, where people construct farmhouse or weekend villa.
Here I mentioned a few of the very well-known good schemes where people invested and gained good returns also.
Therefore these kinds of plotting schemes are also a good opportunity for investors to invest from 50 lacs up to 3cr and above.
As so far wellness and hygiene concerns which prospects for hasty refurbishing of existing commercial buildings or corporate spaces. Variations in architectural for corporate office buildings like social distancing, healthier ventilation, etc will provide for reappearance of situations like Covid19. Similarly will be rehabilitated concentration on co-working spaces as consumers will progressively pursue flexible working models.
In a conclusion with a modulation point of view demand for land market can raise in all such as residential, commercial, and industrial land for balance concerns for financing, ensuring compliance to policy regulations, market demand, and labor shortage.
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