SME Times News Bureau | 01 Feb, 2016
Gurgaon has been preferred as the most attractive and
emerging real estate investment destination, followed by Delhi, Noida,
Faridabad and Alwar, according to a recent study on Determinants of real
estate: A survey of Delhi NCR undertaken by PHD Research Bureau of PHD Chamber
of Commerce and Industry.
Good transport connectivity, existence of employment opportunities and
availability of social infrastructure including schools, colleges, hospitals,
etc have made these destinations attractive for real estate investments.
According to the study, development of metro has resulted in widening choices
for investments in real estate nearby metro stations. The study revealed that
metro construction has not only boosted investment sentiments, but has resulted
in increase in nearby property prices.
According to the survey, price is the most important factor while considering
investment in real estate followed by construction quality, proximity to metro,
gated community, brand name of the builder, corner plots, availability of loan,
power and utility back, vaastu compliance, locality, legal payments, future
prospects of the place and rent receivables.
The study stated that source of information about real estate investment
avenues is largely through personal contacts such as family members, relatives,
friends, colleagues, etc. Further, real estate brokers, agents or dealers,
newspapers or magazines or hoardings and SMS alerts have also resulted in
widening publicity of investment opportunities.
Gradually other means of marketing are also increasing for generating awareness
and publicity regarding real estate projects such as online social networking,
internet, television, etc, said the study.
The key reason revealed in the survey for buying properties in the Delhi NCR is
for residential purpose, followed by earning decent returns on investments,
buying commercial space, rent or lease, retailing, gifting and warehousing,
said the study.
The study highlighted the key factors affecting real estate investment
sentiments which includes high rate of interest on loan followed by
inflationary pressures in the economy, lack of demand and economic uncertainties.
Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry urges
Government of India for a deduction of up to Rs 5 lakh from the current level
of Rs. 2 lakhs for interest paid on a home loan on a self-occupied house while
calculating the taxable income in the forthcoming Union Budget 2016-17 to give
boost to the demand in housing sector.
Enhanced deduction to the level of Rs. 5 lakhs would provide a significant
fillip to the economy and enhance India's GDP by another 2 percentage points
and so will be the level of enhanced revenues of government, said Dr. Mahesh
Further, decelerating prices of international commodities such as crude oil,
steel and cement can be capitalized to give a boost to the construction sector
and to build a strong India, added Dr. Mahesh Gupta.