Monthly Archives: April 2020


Post COVID 19 is a new normal & the surge of migrant workers & all citizens in general, wanting to return HOME during this lockdown is a testimonial of the fact that a HOME is close to everyones heart and those in Housing business will always remain in business, provided they are in sync with the realities of the times. Today the buzz word is AFFORDABILITY and developers offering a HOME in the affordable segment will always find takers.

This brings us to the next question – Will prices correct post COVID 19?

Every other year in our country, we have a new regulation being passed which has a direct impact on REAL ESTATE Industry. A popular study shows that builders & land developers have already absorved an additional cost of upto 20% on account of GST, RERA, compliances under various other statutes, etc where as the selling price has remained stagnant. This effectively means that developers are already subsuming the 20% cost surge, without being able to pass it on to the consumers! Prices have bottomed out completely and this is the best time for anyone looking to buy a home or a plot.

Will Real estate in India survive as an investment option?

The following points convince us beyond doubt that the Indian real estate story is alive & kicking.

  • The whole world has looked upon India with appreciation for the manner in which it has tackled COVID 19 and most of the NRIs want to invest back in this safe country which values people’s lives more that anyother thing.
  • With the USD – INR exchange rate at an all time high and with reverse migration happening, homes in India have become much cheaper for NRIs to own
  • Mutual Funds & Stock markets have fared adversely during these times with investors loosing over 50-70% of their investments. Historically, Real Estate held for 5 – 10 years has led to tremendous appreciation in value.
  • COVID 19 has made people realise the value of owning a HOME. It is the best place to stay at during an extended lockdown. For those who do not own a home, they aspire to buy one and those who already have one, are looking to upgrade or have a second home with health & other amenities as a safe bet
  • Millennial’s who hitherto were going ‘asset lite’ and preferred ‘Co-Living, Co-Working’ spaces will see a gradual shift to owning a Home, be it small or big. It gives a great sense of security during trying times.
  • With Work From Home catching in, a HOME is of prime importance
  • With the recent measures announced by the RBI, interest rates on housing loans will come down drastically. This will an added incentive for homebuyers

In summary Home is the only asset class which one can occupy, it provides a great Sense of security, a feel Good Factor and Long term capital appreciation!

So, once you have zeroed in on a project with a credible builder who complies with RERA and other local regulations, don’t have a second thought, just make your purchases as prices are bound to tick upwards.


Role of Channel partners post RERA

Channel partners & Real estate agents have always been an integral part of the realty sector. With the unparallel growth of Indian Real Estate, developers have been rapidly engaging with Channel Partners. Earlier, Kirana shop owners, small-time brokers and the likes had an unobstructed participation in the real estate marketplace, and many of them grew on unprofessional practises & under-informing their customers.

With introduction of Real Estate Regulation & Management Act (RERA), prospective buyers now have more faith in buying the property through channel partners as they have to get themselves registered with the respective state RERA authorities under the RERA Agent category. Organised Channel partners as advisors, act as a bridge between Real Estate companies and property buyers rather than mere brokers. In Tier-2 cities like Mysore & Hubli, Channel partners, are witnessing immense growth opportunities as they have better understanding of the local requirements & trends.

Interestingly, under the RERA Act, upto 5% of the total project cost can be levied to a registered Agent (channel partners) if wrong information is shared with prospective home buyers. This has brought about transparency in the sector and has improved buyer confidence. This will inturn boost the sector and strengthen the economy further.

Channel partners are looked up as professionals who are adept with current trends & have indepth knowledge of the local markets, customer demands and the builder profiles, there by offering quality service and consultations. There role is way beyond just referring clients, to arranging for property purchase loans, property registration & finally post sales documentation.

In the current scenario, the Role of Channel partners is more that it was ever before!


Property Purchase Checklist

Buying a piece of land or plot is a dream for everyone as land is considered to be a safe and most appreciating asset class. The purpose could be for occupation, to secure a family’s future, children’s education, marriage or just an investment. Unlike countries like Australia or USA, where buying a property is as easy as buying any other product or commodity, it is quite cumbersome and a time consuming process in India. As India does not have a UNIFIED CIVIL CODE, land laws are governed by different statutes. There are no standard checklists to verify the property documents as land in India is a state subject and local laws are also to be studied in addition to the centrally governed acts.

Due Diligence checklist before buying a plot in the state of Karnataka :

Mother Deeds
Chain of title flow
RTC and revenue documents
Is the property an ancestral property or self acquired?
Family tree of the sellers issued by the local Village Accountant to be verified
Absolute sale deed & Khata in the present sellers name
Latest tax paid receipt
If there are any encumbrances / loan on the property and how the same will be cleared?
If it is an ancestral property, has a partition deed, release deed etc been executed between the family members?
As per Supreme Court judgement, all children, be it a son or a daughter, have an equal share in any ancestral property. Hence, are all coparceners a party to the sale deed?
Verification of original documents
Conversion order for change of land use from agricultural to residential
Approved layout plan
Unique Property ID / E-Khata in the name of the seller. In the state of Karnataka, sale of revenue sites (B Khata / a piece of land that does not have all requisite approvals) are banned. Hence ensure that the proposed site is not a “B” Khata plot.
It is advisable to check if loans are available for the land / plot purchase. That way risk can be mitigated.
If the plot is part of a plotted development project, check for registration with the Real Estate Regulation & Development Act and respective state rules and the compliance there of


It is also advised to go with a reputed land developer with a good track record to entrust your hard earned money. A second opinion with an expert will also help.

Be Diligent, invest safe & build wealth!