By Rishabh Chamoli | 2023-03-18
Luxury Real Estate Market
A renowned developer was recently in the headlines when a video became viral on social media claiming that its yet to be launched luxury property in Gurugram was a hit with purchasers. Within a few days, the business expects to have sold 1,137 apartments. The 3,900 square foot flats were being sold for Rs 18,000 per square foot.
That isnt everything. Customers have besieged a broker that visited Noida with requests for luxury projects that are being discussed in Whatsapp groups but have not yet been offered on the market. The market is buzzing with the prospect of a premium developer launching a luxury product in Sector 128, as well as another developer in Sector 94, and one in Sector 115. The majority of these are projected to be priced between Rs 10,000 and Rs 20,000 per sq ft. According to real estate analysts, the advent of branded developers is likely to disrupt the landscape of the city, which has always been an inexpensive market.
This price includes fully equipped apartments with separate clubs, spas, Italian flooring, concierge services, and, most importantly, a guarantee of much needed after sales maintenance. Clients include high net worth people, CXOs, CEOs, and those looking to enhance their homes. Investors are also taking an active role in the market.
There Is No Longer An Affordable Market
The number of luxury launches by branded developers has grown due to a restricted supply of land, for which the builder is obliged to pay the price upfront. Formerly, developers in Noida could pay only 10% up front and the rest in installments.
A Developer purchased a 13 Acre plot of property in Noida via auction in November 2022 for Rs 827.41 crore. The overall acquisition cost, including leasing rent and registration fees, will be Rs 1,200 crore.
Another bought a 28 acre plot of land in Noida for around Rs 450 crore in December 2022 as part of its growth strategy. It purchased the property tract that was previously owned by the real estate development firm
The Tax Angle
Theres also the March 31 capital gains tax deadline. To restrict the exemptions available for earnings from extremely high-value transactions, the finance minister recommended in Budget 2023 that the exemptions available under Sections 54 and 54 F be limited to Rs 10 crore.
Presently, all capital gains derived from the sale of long term assets, including housing units, are excluded from tax if the profits are reinvested in another residential property, and there is no limit to the amount that may be deducted. Nevertheless, under the revised regulations, capital gains subject to deduction would be limited to Rs 10 crore.
The Modus Operandi
According to brokers, the method of selling luxury flats that have gained traction in recent months is an Expression of Interest. A few brokers inform their customers of the forthcoming luxury launch via Whatsapp messages and phone calls, and they respond with an expression of interest.
This is an informal procedure through which a homebuyer announces his desire to purchase a housing unit in the proposed project. This unit may be launched on the market once all regulatory clearances have been obtained. The customer is simply given a tentative launch price and location. Buyers must fill out a preliminary application and provide basic information such as their preferences and a check expressing their interest in the project.
These purchasers are not given the choice to select the apartment and are expressing interest at their own risk, they claim, adding that if the response is poor, the developer may decide to lower the price and notify the consumer that a discount is being provided to him.
While the price may appear appealing, legal experts advise purchasers to avoid such transactions.
Save your money,
contact Owners directly
Become an Ratnkunj Prime member now.
Support from Relationship Manager.
Call upto 35 Owner directly
Get accessed by over 1 Lakh buyers .
Hassel-free site visits with us
Your EMI Per Month will be