It fills our heart with pride and pleasure when we see a home that we own or an office from where we earn a living. The joy of seeing your real estate piece is unparalleled. Real estate investing continues to remain a tried, tested and reliable form of investing and indeed a secure and solid one. The properties we buy are either residential or commercial in nature.
Residential properties include apartments, villas, bungalows and farm houses. Though typically bought for the purpose of consumption, residential properties are also purchased for reasons of income creation by way of rent, lease and even estate planning. Real estate investments are normally led by emotions but more so in case of residential purchases. Buyers look at such properties as future securities and have increased attachment. Though the return on investment on such properties is normally less but it is easier to dispose them off when in need. With the recent measures taken by the government, the loan rates have reduced and it has thus become more favourable for people to buy their dream homes. The affordable housing regime has also brought about a positive wave in the buyer sentiments. What has definitely become better are the designs and amenities. People today are looking for much more than just four walls. The builders are responding well to the dynamic needs of the end users. Today we see buildings with extended amenities like play areas, jogging tracks, movie theatres, swimming pools and various other sports facilities. The quality of life is definitely getting better. Post pandemic we have witnessed a rise in the sale of residential sales because people have realised the importance of good, spacious and well-equipped homes. There are builders who are coming up with houses with work from home facilities. Where on the one hand, affordable housing schemes are on the high, weekend villas and high-end apartments are also in demand.
Investment in residential homes is a big contributor to tax saving too. Buyers today can claim deduction up to Rs. 2,00,000 under section 24B for interest paid on home loans for up to two owned homes. Apart from that the principal payment in the home loan is also available for exemption under section 80C. So, through home loan, a person can actually claim deduction of up to Rs. 3,50,000 under various sections of income tax.
Commercial properties build a beautiful skyline for any city. Elaborate structures, intricate designs and appealing elevations in commercial properties make home for offices of many. Long term appreciation is always better here as compared to residential. Property tax is on the higher side but the return on investment is also higher. Commercial properties are normally available for longer lease and also provide the buyers with stable income. The loan rates for commercial properties have also reduced as per the market movement but there are no specific perks from the side of the government or the regulator. Where the amenities provided by the builders are increasing in the residential sector, the same is also happening in commercial. Office buildings today are more user friendly than before. Many builders are offering features like conference rooms, cafeterias and even waiting lounges. The markets have witnessed a surge in the commercial real estate and we can see a huge supply of the same. The pandemic did hurt the sentiments of the commercial property buyers for sometime but we are already seeing the end users rising up to buy and use office spaces more than ever before. The appreciation might be limited and the new launches might be on the low, but in short time we are expecting the demand beating the supply and that’s when the returns as well as rental incomes will rise. The rates for the ready possession properties will increase in no time. Talking specifically about Ahmedabad and Gujarat real estate scenario, Vibrant Gujarat has given a major boost with head offices of major companies relocating here.
Residential or commercial, real estate is the sector that gives the greatest value of money, least risk and best satisfaction to the buyers.