Author: Nagaraju Routhu, CEO, Hero Realty
Real estate trends in the state of Punjab have always been influenced by multiple set of buyers and investors. As the state’s history is dominated by a major chunk of individuals shifting to foreign countries, the prevalent demand and trends for residential and commercial segments have always been different from the other realty markets of India. The percentage of remittances coming to the natives of Punjab has always been fairly higher than the rest of the regions in the country. The natives are also one of the firsts to be introduced to the Western lifestyle and their elite concepts of living, which has led many of them, seek opportunities to build their own humble abodes in the home country.
While some believed in constructing a home back here in India as a safety net, or a retirement retreat, a good section of people also believed in having a second source of income. As times changed, the interests shifted from putting their money into kothis to luxury apartments. The 2BHKs and 3BHKs dotting the skylines of Punjab are now their most preferred choice when it comes to investment in real estate.
Today, the state is standing on the threshold of a real estate boom with world-class housing projects constantly evolving as per the consumer preferences and trends in cities like Zirakpur, Mohali, Ludhiana. End-users are more inclined on choosing ready-to-move-in over under-construction properties.
Even though the Covid-19 pandemic has undoubtedly derailed various businesses, Punjab has fortunately managed to attract global companies from the US, UK, Canada and France across diverse sectors, such as sports infrastructure, real estate, IT and pharmaceuticals.
The state has received over Rs 1,000-crore FDI proposals during the tenure of April 2020-January 2021. The companies have already procured their designated land and submitted the DPRs to the government. Additionally, Smarter e-Learning Pvt. Ltd, a subsidiary of New York-based Netsmartz LLC, a software development company, will invest Rs 151.78 crore in IT hub of Punjab, Mohali.
Ready-to-Move-In apartments apart from the advantage of prompt availability also come with several other ones in terms of already granted permissions and certificates. Also, RTMI homes deliver the buyers an additional benefit of no GST which makes things financially convenient as they save an additional 5% tax which they would have ended up paying for an agreement to be done for under-construction property. Additionally, such homes also let buyers avail the immediate tax benefits over home loan premiums (both principal and interest).
All these financial benefits ensure that the payback on an RTMI home is higher making it a profiting deal. RTMI homes are a popular choice for NRI investors also because they invest in them with the motive of establishing a second source of income. All these advantages combined make the RTMI the most preferred choice in the residential market of Punjab for not just the natives but also the expatriates of Punjab origin.