Budget 2024 and the Impact it Made on Real Estate
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Budget 2024 and the Impact it Made on Real Estate

The Union budget that was presented by Finance Minister Nirmala Seetharaman has a significant impact on the real estate sector in India. The Indian real estate sector is poised to make a major contribution to the country’s GDP in the coming years. It is also a prime employment generator employing thousands of people and securing their livelihood. The policies framed by the budget will have a significant impact on the economy in general.

Key announcements

1. In this budget the housing needs of 1 crore urban and rural middle-class families will be addressed. The government has allocated Rs 10 Lakh crore to create 3 crore additional houses under the Pradhan Mantri Awas Yojna (PMAY). This is expected to increase the demand in the mid-segment and affordable housing segment encouraging developers to construct more projects catering to affordable ready to occupy flats in Kochi.

2. The government will help develop “plug and play” industrial parks in 100 cities to attract investment and encourage industrial growth. These parks will attract industries with ready-to-use facilities reducing their operational costs and time. The government intends to support regional development in strategic locations for increased economic benefit. All these initiatives are set to increase real estate activity in these locations to meet the housing and commercial demands.

3. One of the significant announcements of the budget was the withdrawal of indexation benefits on long-term capital gains. This means that the purchase of the property can no longer be adjusted for inflation while calculating taxes on after-sale income. The tax on the long-term capital gains has been reduced to 12.5 % from 20% but the removal of indexation benefits will increase the tax bills by a significant margin, especially for properties purchased many years ago. The returns on investment will be reduced for long-term property investors due to this move. This is expected to stabilize the property prices due to reduced speculative investments benefiting the first-time home buyer.

Another consequence of this policy will be the slowdown of the luxury real estate market like the 4 BHK flats in Kochi, while the urban rental markets will witness increased demand. Also, the affordable housing segment is expected to grow.

4. The budget has reduced stamp duty charges for women home buyers promoting inclusive home ownership. A progressive move that will motivate real estate developers to target women home buyers with specifications catering to their needs.

These are the key announcements and the impact they are expected to have on the real estate industry impacting builders and developers in Kochi.

The Rise of Luxury Apartments in Kochi
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The Rise of Luxury Apartments in Kochi

Luxury living in Kochi is an ever-evolving phenomenon as builders in Kerala are upping their game to win the hearts of luxury home buyers. The residential landscape is changing fast in Kochi as the number of luxury flats in Kochi rises. Aspiring professionals, entrepreneurs, and expatriates have embraced sophisticated living in luxury residences like never before. Kochi offers an ideal mix for luxury connoisseurs with its natural beauty and growing urban lifestyle.

This blog provides a glimpse into the factors influencing this trend:

1. Economic Affluence

The Kochi economy has seen a steep growth trajectory in recent years driven by the IT, tourism, and healthcare sectors that have contributed greatly to the prosperity of its residents. The rising affluence has empowered residents to invest in luxury apartments in Kochi to upgrade their lifestyles. The new-age home buyer demands world-class opulent residences, amenities, and facilities.

2. Aspirational Lifestyle

We are aware that Kerala has one of the highest NRIs living and traveling abroad. The modern homebuyer is exposed to world-class luxury living and won’t waste time in fulfilling the aspiration of living an opulent lifestyle. Luxurious homes, premium amenities, and a thriving social life are the expectations of these home buyers. Builders and developers in Kerala are leaving no stone unturned in alluring them with premium apartments in Kochi.

3. Exclusive Branding

Branded developers collaborate with high-end consumer and hospitality brands in their projects to offer the residents an elite lifestyle. These projects are complemented by high-end amenities like concierge services, high-end security systems, and personalized home services which complement the lifestyle of high-net-worth individuals.

4. Smart Home Technology

Luxury residences are now adorned with high-end technology features like home automation systems, enhanced security features and remote-controlled systems. The luxury experience is taken to the next level by the convenience and automation provided by these systems which can create an automatic ambiance by recording the customer’s preferences. Controlling temperature. lightning and programmed operation of electronic devices are other features of automation systems.

5. Sustainability

An added advantage of home automation is their contribution of enhancing sustainability and eco-friendly features in modern luxury residences. Automated systems help in conserving natural non-renewable resources fulfilling the sustainability aspirations of the new age homebuyers. Green and eco-friendly features are essential attributes of luxury projects.

These are the distinguishing features of luxury projects in Kochi that are transforming the residential real estate landscape.

Future of Real Estate Emerging Trends and Technologies
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Future of Real Estate: Emerging Trends and Technologies

The fast-growing real estate industry is undergoing rapid transformation powered by technology. The way property is bought, sold, and used is changing quickly with each passing year and is changing fast. Property builders in Kochi must keep up with these changes to meet buyer’s demands. By understanding emerging technologies and changing buyer preferences, builders and developers in Kerala build projects that boast comfort, convenience, and luxury like never before.

This blog discusses emerging trends and technologies in the real estate landscape:

1. Demand For Luxury Real Estate

The rise of disposable incomes and shifting consumer preferences are influencing homebuyer preferences, especially millennials. They are gravitating towards luxury real estate due to the growing affluence and changing urban lifestyle. They aspire to live in exclusive residential projects with high-end amenities. The potential for high return on investment and increased rental incomes are also pushing investors towards luxury apartments in Kochi. These factors have resulted in a significant rise in the sale of luxury properties all over.

2. Rise of Low-density Housing

Low-density housing options like villas, townhouses, and plotted developments are in demand. These properties with less population use fewer natural resources like water, power, and air. Residents of these properties want to live sustainably by preserving resources like land and water to be in harmony with nature. The land is largely unused in these projects reducing the need for infrastructure and staying away from crowded cities. Builders in Kerala are responding to these trends by introducing well-planned low-density projects emphasizing open spaces, lush greenery, and exclusivity.

3. Smart Homes

Smart homes are built to make residences convenient for the owners by using technology to automate various activities within the home. Smart thermostats, efficient lighting, and the use of solar energy have helped in conserving power and reducing utility bills. Enhanced security features, remote control of home appliances and devices, and automatic control features are changing the living experience in the new age of smart homes.

4. Virtual and Augmented Reality

Prospective buyers can now take virtual tours of properties from the comfort of their homes. Virtual reality tours give buyers a seamless experience with property details in real time. They can have a good understanding of the properties, examine the details closely, and get a good understanding to make their decisions without having to visit the property. Augmented reality enhances the property experience by overlaying digital information onto the physical surroundings to envision their future home.

These are the trends and technologies being adopted by property developers in upcoming locations like flats in Vytilla. Combining technology and emerging trends in real estate most residential projects will keep evolving to meet the demands of the discerning customer.

Step-by-Step Guide to Under Construction Projects in Kerala
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Step-by-Step Guide to Under Construction Projects in Kerala

In Kerala, where the real estate market is flourishing, opting for an under-construction project comes with numerous advantages for potential buyers. Builders in Ernakulam employ various strategies, such as enticing brochures, attractive offers, flexible payment options, and competitive prices, to attract a wide range of buyers. Despite the alluring offers, home buyers must exercise caution and conduct thorough due diligence before finalizing any deal.

Below, we explore crucial steps to ensure a seamless process when purchasing an under-construction property in Kerala:

1. Extensive Research

In the many projects in Kerala, developers offer diverse properties at varying price points. Extensive research of under-construction projects in Kerala forms the foundation for shortlisting potential properties that align with your expectations. Consider factors like location, price, configuration, and provided facilities when narrowing down your choices while selecting apartments in Ernakulam.

2. Legal Due Diligence

After shortlisting suitable projects, the next step involves ensuring clear titles and proper paperwork related to land and government approvals. The selected property should be free from legal disputes. The builder must possess all necessary permissions and certificates from authorities allowing the construction work to proceed.

3. Approvals and Permissions

Confirm that the builder has obtained project plan approval, outlining essential details such as project layout, the number of units, and building floors. Ensure the builder adheres to the approved plan of the flats for sale in Ernakulam without engaging in any unauthorized construction that may compromise the project’s designated open spaces.

4. Developer’s Track Record

Assessing the reputation of the builder becomes paramount when considering an under-construction property. Since judging builders solely on future promises is challenging, examining their track records and reviewing feedback from previously constructed flats for sale in Ernakulam is a good strategy for gauging their credibility.

5. RERA Compliance

According to the RERA Act, the selected projects in Kochi should be registered under RERA. Cross-check the developer’s claims and promises on the RERA website using the provided RERA number. RERA ensures adherence to strict timelines and provides a redressal procedure for buyers in case of grievances or disputes.

6. Property Pricing

Homebuyers should be informed about property prices in different locations in Kochi. Evaluate the project’s property prices based on its locality, considering the potential savings associated with booking under-construction projects in Kerala. This stage also allows for negotiations, providing additional benefits to buyers.

7. Payment Schedules

Developers typically offer flexible payment options for under-construction properties. Understanding the payment schedule, which often involves a 10% (may vary) initial deposit and subsequent payments spread over several years, is crucial to managing the financial burden effectively. Studying the payment schedule in detail helps avoid surprises later.

Approaching the purchase of an under-construction property in Kochi with diligence and care can lead to a rewarding investment. By conducting thorough research, ensuring the credibility of the developer and project, and being well-informed, homebuyers can confidently invest in a property that aligns with their aspirations.

Impact of Smart Home Technology On Property Value
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Impact of Smart Home Technology On Property Value

Smart home technology integrates various home functions to control, automate, and monitor them remotely using technology. The technologies include smart thermostats, lighting, security systems, voice assistants, and appliances. As these devices integrate the home functions to give a seamless experience to the resident enhancing their comfort and convenience many folds, their impact on property value has been significant.

This blog explores how smart home technology is impacting property values:

1. Increased Demand

The tech-savvy millennials and younger home buyers seek the latest technology when they invest in their homes. The convenience, luxury, energy efficiency, and enhanced security features attract them. They are ready to pay more for these futuristic features improving their quality of life. Ready-to-occupy flats in Kochi have all the features pre-installed before the residents can get possession of their homes.

2. Energy Efficiency

Efficient systems that reduce utility bills lure the new-age home buyer as they achieve dual goals of savings and sustainability. Smart thermostats can reduce utility bills by understanding the heating and cooling preferences of the residents. Smart lighting can save power by optimizing the usage depending on the patterns. The new-age home buyer is ready to pay a premium for these efficient systems.

3. Enhanced Security

Smart security features like remote monitoring, app-based locking, and unlocking, instant alerts, and doorbell cameras enhance the safety and security of the homeowner. These features play a role in enhancing property value, especially for high-net-worth individuals. Many apartments for sale in Kochi come with these advanced security features.

4. Convenience

Smart homes offer the ultimate convenience to home buyers. From controlling home devices remotely to giving voice commands, comfort and convenience is an exclusive experience. 3 BHK flats in Kochi command a premium to offer these conveniences. These are highly attractive to younger home buyers who are willing to pay a premium.

5. Investment

Smart homes are future-ready and will not require significant updates after some years. These homes are more appealing to the homebuyer who may use their home as an asset. These homes have higher market value with a good demand from future home buyers. They can also earn a higher rental return if the buyer decides to rent it out.

Smart homes are here to stay and most homes will be equipped with at least the basic smart home features if not the advanced ones. The convenience offered by these homes and the status of living in an automated residence lure more home buyers to invest in smart homes.

Understanding the Real Estate Market in Kochi, Kochi Real Estate
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Understanding The Real Estate Market in Kochi

Kochi is the Queen of the Arabian Sea for its natural beauty, scenic views, and rich cultural heritage. It is a top choice for domestic and international tourists and has been ranked sixth among the top tourist destinations of India by Nielson. According to McKinsey Global Institute, Kochi is one of the top 28 Indian cities that will be a part of 440 global cities, making up 50% of the world’s GDP by 2025.

Infrastructure

Kochi has been identified as one of the 20 smart cities by the Ministry of Urban Development, Government of India through a competitive selection process. This means that the city will get a special focus on developing planned and improved infrastructure. The focus will be on E-Governance, water management, power supply, sanitation, solid waste management, efficient urban transportation, and IT

Connectivity.

The city is well connected to the rest of the country and world by air, road, and rail. The domestic and international airports, state and national highways passing through it, and railways give access to all major hubs and cities within the state and country. The network of roads in the city is the principal mode of movement of transport within the city.

Economy

The Kochi Refineries, Kochi Shipping Yard, Eloor Industrial Estate, Kakkanad technological cluster, and the Special Economic Zones are the major hubs for industrial activity in the region. These regions are responsible for major economic development in the city and account for more than 450 IT companies and 250 companies from other industries. The demand for housing and commercial real estate is fuelled by these developments forecasted to keep growing in the future too.

Real Estate Scenario

There are several reasons that the Kochi flats for sale are preferred. The city is rated as one of the safest cities to live in India. The booming IT industry is attracting many professionals to migrate to the city as living in Kochi is affordable. These factors are responsible for the rapid development of the real estate sector.

The builders in Kochi are developing residential and commercial real estate to meet the growing demand. From budget to luxury apartments, independent houses, and villas in Kochi, the home buyer and investor have a range of choices offered by leading developers. Most of the ready-to-occupy flats in Kochi have the best amenities and facilities that meet international standards. 2 and 3 BHK flats in Kochi are the preferred configurations by home buyers and investors.

The pricing for residential homes ranges from ₹2000 to ₹9000 per square feet depending on the locality and type of projects. Some of the major locations are Kakkanad, Edapally, Kaloor, Thevara, Aluva, Panampilly Nagar etc. Kochi is a major hub for real estate and is poised for growth in the coming years.

NRI Real Estate Investment Guide For Buying Property in Kerala
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NRI Real Estate Investment Guide For Buying Property in Kerala

Kerala has one of the highest numbers of expatriates in the country who live in many parts of the world including the Middle East, Europe, and the Americas. Kerala also has very high remittances from abroad compared to most other regions in India. As the real estate market is booming here, many NRIs are investing to increase their assets and earn lucrative returns. Before investing, there are certain important aspects that the NRI investors should consider.

We will discuss these in this blog.

1. Legalities

The real estate transactions for NRIs fall in FEMA – Foreign Exchange Management Act has laid out the guidelines. As per these, NRIs are allowed to buy and rent property in India and transfer the earnings into their NRO or NRE accounts. NRO and NRE accounts are bank accounts that NRIs are allowed to manage their earnings in India and abroad.

NRIs are allowed to take loans from banks to fund their real estate investments and use rental income to repay these loans. They can repay these loans through the NRI and NRE accounts.

2. Research

NRIs should have an investment plan to make outlining their investment objectives clearly. This will help them decide the quantum of investment and the properties they should invest in. Builders in Kerala offer many options for real estate investments. For instance, Kochi flats for sale fall under the luxury, mid-segment, and affordable category. Investing in properties that meet the goals and objectives of the investor makes more sense than following a blanket rule for investment.

3. Residential and Commercial properties

NRIs can choose to invest in residential or commercial properties depending on their investment objectives. Although commercial properties give higher returns, they are difficult to rent out or sell. Residential properties are easily rented or sold due to rapid urbanization across cities in Kerala that have a high demand for housing. Luxury properties are in demand amongst home buyers as they can afford them due to rising incomes. Renting these out or selling them will earn higher returns for NRIs investing in them. Investing in villas, luxury apartments, and similar properties that have high market value are good options for NRIs. New projects offering flats in Vytilla can yield better returns than those in the older suburbs of Kochi.

4. Locations

Most cities in Kerala are growing at a rapid pace. Cities like Kochi, Trivandrum, and Kozhikode have an ideal balance of urban living and natural surroundings. Choosing to invest in these cities can ensure growth in returns every year. Smaller cities like Thrissur and Kottayam are also good destinations for investing with many luxury properties to choose from. Flats for sale in Thiruvalla can be good options for NRIs who want to retire in the calm areas.

Investment in Kerala can fetch NRIs good returns. They must hire local lawyers specializing in property investments who will help them with the policies and procedures laid out by RBI and the government.

Kochi The Ultimate Destination for Real Estate Investment
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Kochi: The Ultimate Destination For Real Estate Investment

Kochi, the burgeoning Tier II city of India and the economic hub of Kerala is experiencing an unprecedented surge in growth. This boom, fueled by rapid infrastructure and industrial development, has catapulted the real estate market into a realm of immense demand for both residential and commercial properties. With escalating incomes and elevated living standards, the city is witnessing a burgeoning desire for luxury living, making it an alluring destination for investors seeking the perfect fusion of traditional and modern cultural lifestyles.

Let’s delve into some pivotal trends shaping Kochi’s property market:

1. Prime Locations

Flats in Ernakulam are predominantly found in prime locales such as Edappally, Cheranalloor, Providence Road, Kollamkudimugal, Kakkanad, Vyttila, and Kadavanthra. These areas boast elite neighborhoods, waterfront views, and easy access to educational institutions, hospitals, malls, cafes, and restaurants. Additionally, they house some of the city’s premier commercial real estate. The demand for real estate in these areas is high and investments here will yield high returns.

2. Design and Architecture

The luxury flats in Kadavanthra and similar locations showcase a harmonious blend of modern and traditional architecture, catering to the discerning tastes of home buyers. Whether it’s luxe apartments, bungalows, or villas, each property boasts elegant designs and contemporary layouts, exuding a refined aesthetic. High-end interiors featuring premium materials, fixtures, and fittings further enhance the allure for elite investors.

3. Amenities and Facilities

Flats in Ernakulam are equipped with world-class amenities catering to the affluent lifestyle. From swimming pools, fitness centers, and clubhouses to spa and wellness centers, multi-car parking, 24×7 security, and concierge services, these facilities align with the expectations of an opulent living experience. Flats in Vytilla are good examples of residents with the best amenities and facilities.

4. Privacy and Security

Distinguishing themselves in terms of security and privacy, flats for sale in Kochi’s luxury segment are often situated within gated communities with restricted access and round-the-clock surveillance by security personnel. Some complexes go the extra mile with advanced security features such as video intercoms, CCTV surveillance systems, and automatic fire-combating systems.

5. Sustainability

Embracing green and sustainable living, many flats for sale in Kochi incorporate features like rainwater harvesting systems, solar panels for electricity generation, energy-efficient appliances, and landscaping that prioritizes native plants and conservation. Investing in such futuristic projects ensures long-term benefits for investors.

6. Builders and Developers

Renowned builders in Kochi continuously innovate to meet the demands of discerning homebuyers. They offer modern, luxurious flats that stand out in the competitive market. Luxurious gated villas, deck-style apartments, personalized services, and advanced security systems are some of the innovative features that adhere to international standards, setting them apart from the rest.

Investing in Kochi’s real estate can be highly rewarding. Conducting thorough research on locations, and property markets, and seeking advice from industry experts is crucial. Given the high demand for reputable projects in the city, acting swiftly and vigilantly in property investment is paramount.

Tips For Investing in High-Return Rental Properties
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Tips For Investing in High-Return Rental Properties

Investing in the Kochi real estate market is a wise decision. The city is one of the fastest-growing cities in India and it is also a top real estate market. The demand for rental properties is expected to be high in the coming years due to the influx of professionals demanded by the rapidly growing IT and allied industries. However, one cannot just invest in any property in Kochi. A property that will generate high rental returns must be carefully chosen by following certain tips.

Let us discuss these below:

1. Property location

The location of the property will determine the rentals it will earn. For high-return rental properties, one must look for localities that are already established as main hubs or those that have high growth potential. Investors can search for flats in Kochi in hubs of Kochi like Kakkanad or explore new locations like Edappally which have a potential for future growth. Tenants will usually choose locations that are easily accessible and have all the basic amenities and facilities.

2. Connectivity

The property should be well-connected to different parts of the city by road or rail using personal or public transport. Tenants usually look for a property that is easily reachable to and from their workplaces. The property should be close to or easily accessible from business districts, IT hubs, and important office locations. If they are not close, they should be easily reachable using public transportation.

3. Reputation of the developer

The Kerala real estate market is growing with many developers and builders wanting to make their mark. Choosing a reputed builder is the best way of safeguarding your investment. A reputed developer will have the best construction quality, facilities, and amenities. An investor cannot be spending money on repairs and maintenance within a short span of investing in the property. A tenant will always look for a property that is of good quality and is well maintained.

4. Social infrastructure

Educational institutes, schools, colleges, hospitals, and supermarkets are necessities tenants look for. The presence of these in close vicinity of the property increases the chances of tenants choosing the property. Owners can also charge a premium for the convenience of these properties ensuring a better quality of life.

5. Future growth and appreciation

With the growth of real estate investment in Kochi, many new micro-markets are being formed on the outskirts of the city. Nettoor and Maradu are such micro markets that are poised for development in the future due to their rapid urbanization. The properties in these upcoming locations are cheaper than those in the heart of Kochi. With the growth in physical and social infrastructure, the property prices and the rentals these markets command keep appreciating. By identifying and investing in reputed projects in Nettoor and Maradu early on, one can earn good returns in future.

High-return rental properties give a regular source of income. By identifying good properties at the right location investors can enjoy the benefits of additional income which will keep appreciating with time.

Understanding Property Management Tips for Homeowners
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Understanding Property Management: Tips for Homeowners

Investing in property is one of the most lucrative means of increasing your net worth today. Especially in one of the fastest-growing real estate markets, buying property is a smart decision as it not only provides appreciation on the investment but also regular rental returns. However, like any asset, property too needs to be managed effectively to maximize the returns it generates. Homeowners should follow a strategy to maximize rental returns on their property.

Important property management tips are discussed below:

1. Setting competitive rental rates

A thorough market research will give an idea of the prevailing rental rates for the property in Kerala. Factors like location, property size, amenities, and facilities need to be considered. By offering competitive rates you can expect your property to be rented faster without having long gaps in between tenants. Although tenants try to negotiate the rental rates it is always best to not allow too much leverage. This may make the tenant doubt the property’s condition or if there are any issues with the property.

2. Screening tenants

A thorough screening process of the tenants becomes necessary to ensure that the tenant does not create problems in the future. Background checks, credit checks, employment references, and supporting documents should be verified for the authenticity of the prospective tenant. Valid identity proofs like Aadhar card, PAN card, police verification, etc should be collected during the tenant registration process. This will ensure that the tenant does not default on the rent, damage the property, or threaten eviction.

3. Lease Agreement

The lease agreement is an important document that spells out the terms and conditions of the contract between the owner and the tenant. The lease agreement should be clear, concise, and easily enforceable without any ambiguity. The agreement should protect the interests of the property owner with provisions for the rent increase, late payment penalties, maintenance of the property, and renewal terms. It is mandatory to register the agreement with the authorities for it to be valid and enforceable. By avoiding potential disputes, the homeowners can ensure that the rental income is protected and there are no unnecessary expenses.

4. Maintenance of the property

A well-maintained property will attract the best tenants and ensure competitive rentals. Regular inspection of the property making sure there are no repairs, damages, or leakages, and performing necessary maintenance will justify the rent and a good relationship with the tenant. A well-cared property leaves a good impression of the owner amongst the tenants and brokers.

By setting competitive rentals, screening tenants, maintenance of the property, and having all the legal documentation and process in place, homeowners can rest assured of the expected returns on their property.

Get in touch

ABAD BUILDERS PVT. LTD. Kochi Office
8th Floor, Nucleus Mall & Office,
N.H.85 (Kundannoor – Petta Road),
Maradu. P.O, Kochi – 682 304.
Ph: +91 0484-4105000,
GSM: +91 9072349966

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about us

ABAD Builders, set up in 1995, is Kerala’s first CRISIL-rated builder and has also acquired ISO 9001. The ABAD group, with a legacy that goes back to 1931, also has interests in seafood processing, hospitality services, facility & project management services and retail.

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