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India Today
6 days ago
- Business
- India Today
Explained: Why buying flats on hefty EMIs may not be wise
For many Indians, buying a flat is more than just a transaction. It's an emotional milestone that symbolizes security, success, and ownership. But financial experts are now cautioning that this age-old aspiration may not always make sound financial sense, especially when the math tells a different Kodawar, Partner and President at Complete Circle Capital, recently sparked a conversation on LinkedIn by calling out what he termed 'the biggest personal finance mistake' Indians often make: purchasing a flat on EMIs at 8 to 9 percent interest, only to rent it out at a 3-4% maintenance and other charges, the real return may drop to just 2-3%,' Kodawar wrote. 'This is the real estate investment trap. Please don't fall into it. The real estate game is largely discovered and not that lucrative anymore.' His warning has resonated with a growing set of urban investors who are beginning to question the wisdom of real estate as an income-generating fact, data from Anarock Property Consultants shows that average rental yields in metro cities like Mumbai, Delhi, and Bengaluru remain stuck between 2 and 3 percent, far lower than prevailing home loan interest traditional belief that 'property never fails' is gradually losing ground to the rise of more efficient and liquid financial funds, equities, bonds, and annuity products are increasingly being seen as superior alternatives, delivering better post-tax returns with fewer hidden estate, by contrast, comes with its own baggage: illiquidity, legal complexities, prolonged holding periods, and mounting upkeep costs. Financial assets, on the other hand, can be aligned with one's risk profile, offer greater diversification, and are typically easier to shift is already visible in the data. According to SEBI, monthly Systematic Investment Plan (SIP) contributions crossed Rs 20,000 crore in early 2025, a strong sign of growing retail participation in market-linked investors, in particular, are exploring SIPs, Exchange Traded Funds (ETFs), and even annuity plans as practical, hands-off wealth is it time to rethink the ownership obsession?Despite the emotional weight attached to homeownership, financial advisors argue it's time to separate sentiment from interest costs are high, rental yields are stagnant, and property prices offer limited upside, the dream of owning a home can quietly morph into a long-term financial puts it bluntly: 'It's time we separate emotional fulfilment from financial sense.'(Disclaimer: This article is for general informational purposes only and does not constitute financial advice. Readers are encouraged to consult a certified financial advisor before making any investment or financial decisions. The views expressed are independent and do not reflect the official position of the India Today Group.)- Ends


Mint
01-07-2025
- Business
- Mint
Residential sales: Where have all the buyers gone?
The homebuying frenzy has ebbed with sales dropping sharply in the past three months. Rising home prices and geopolitical tensions played spoilsport after a four-year boom. Can softening mortgage rates and steady prices change the course of the downturn? How have home sales performed? After three years of growth in home sales, the April-June quarter this year saw a big drop—20% in the big seven cities compared with the year-ago quarter, said Anarock Property Consultants. With the exception of Chennai, all the other major property markets witnessed home sales go down. Mumbai Metropolitan Region (MMR) and Pune, the two best-selling markets in recent years, together accounted for nearly half of the total sales during the June-ended quarter. Pune and Hyderabad saw the biggest drops. Despite the year-on-year drop, sales saw a marginal 3% uptick compared with the January-March period. Why have home sales dropped so steeply? Generally, home prices have risen rapidly after the pandemic and a seven-year slowdown before that. Now, geopolitical tensions including Operation Sindoor and the Iran-Israel war have impacted sales. However, a slight weakening in sales started last year itself, after developers sold a record number of homes in 2023. A fall in home supplies or project launches is possibly another reason. Launches decelerated by 16% year-on-year during the period. Delayed project approvals also disrupted sales targets in 2024-25 for top developers such as Prestige Group. That bottleneck seems to have spilled over to this year as well. Which cities have seen home prices shoot up? The National Capital Region (NCR) saw the most year-on-year rise, up by 27% in the June-ended quarter. Bengaluru stood second. Mid-income and affordable homes saw a sharper increase in price than premium properties, as per Liases Foras Research. Experts believe that if prices are reined in, housing sales across major cities are likely to accelerate going forward. What are the developers' plans? Developers are still targeting higher sales in FY26 on the back of new project launches, existing inventory and a focus on premium projects that fetch higher margins. India's four leading developers—Godrej Properties, Prestige, DLF and Lodha Developers—together aim to cross ₹1 trillion in home sales in FY26, marking the strongest year yet for branded players. However, sales timelines for most projects have been extended, and mid-size and small developers are taking longer to sell than in the post-pandemic years. And the prospects of recovery? With mortgage rates softening and prices holding steady, sales could see an upswing in the coming quarters. Pankaj Kapoor, managing director of Liases Foras said project launches that have been subdued mainly due to delays in approvals may recover in the latter half of this year. However, sales are unlikely to see major growth over the last year, and will stay at par with last year, or even see a marginal decline. Higher sales may come in from beyond the metro cities, taking a bigger share in the overall sales pie.


Mint
09-06-2025
- Business
- Mint
Godrej scion Tanya Dubash's firm buys ₹226 cr duplex in Worli's super luxury tower Naman Xana
Bengaluru: Shaula Real Estates Pvt Ltd, which lists Tanya Arvind Dubash, executive director and chief brand officer of Godrej Industries Ltd, as one of its directors, has purchased a duplex apartment for ₹ 225.76 crore in Mumbai's super luxury tower, Naman Xana. This marks yet another record-breaking deal for the developer of Naman Xana in Worli in recent months. Chairperson of pharmaceutical firm USV Ltd Leena Gandhi Tiwari bought a 22,572 square feet space in the 40-storey under-construction tower for ₹ 639 crore this year. Shaula Real Estates' transaction was registered in May, as per registration documents accessed by Square Yards, a real estate data platform. The 11,485 sq ft apartment was a primary sale and was purchased from Naman Residency Pvt Ltd and Karp Estate Pvt Ltd. Based on the total transaction value of ₹ 225.76 crore, the per square foot rate works out to around ₹ 1.97 lakh per sq ft. Besides Dubash, the daughter of Adi Godrej, chairman emeritus of Godrej Group, Shaula Real Estates, has Clement George Pinto, chief financial officer and head of finance at Godrej Industries Ltd (chemicals), as a director. The firm was registered in March this year. A Godrej Industries spokesperson declined to comment on the matter. 'With average property prices in Worli hovering around ₹ 1.20 lakh per sq. ft. or higher, the 'Naman Xana' project commands a premium due to its sea-facing location, expansive layouts, and proximity to key infrastructure such as the Bandra-Worli Sea Link, and the newly operational Mumbai Coastal Road,' a Square Yards spokesperson told Mint. The 'Naman Xana' project, being developed by city builder Shree Naman Group, is spread over 0.64 acres and is scheduled for completion by 2027. In 2024, ten homes in Worli were sold for over ₹ 100 crore each, against four such transactions the year before. In total, 30 homes priced above ₹ 40 crore, worth ₹ 4,862 crore, were sold in Worli in 2023 and 2024, according to Anarock Property Consultants. In December, Seema Singh, part of the promoter group of Alkem Laboratories, bought an apartment in the under-construction 'Lodha Sea Face' project for ₹ 185 crore. 'Sea-facing, luxury residential projects such as 'Naman Xana', 'The Legacy' and 'Lodha Seaface' are creating a new billionaire's street in the heart of Worli,' said Fatima Saidi, head-luxury residential (Mumbai) at Anarock Property Consultants. 'Besides the prime location, high demand for such exclusive homes, and limited supply are driving up the prices, and developers can command a premium these projects.'


Time of India
03-06-2025
- Business
- Time of India
In Chennai city, the search for home gets pricey
1 2 The rental squeeze is no longer just a core-city story. In Velachery, a modest 1BHK in an apartment complex with elevators and other amenities now rents for 22,000, nearly double what it cost two years ago. In Sholinganallur, rents have crept past 30,000, and even suburbs like Pallavaram, Ambattur, and Perambur are no longer 'affordable'. Be it the traditional hotspots like Adyar and Anna Nagar, or the growing suburbs like Pallavaram, Perungudi, and Madhavaram, rents are surging across Chennai. With school admissions underway and offices demanding in-person attendance, families and professionals alike are scrambling for homes, only to find landlords upping the stakes mainly due to an increase in land value, a spike in property tax, and improved connectivity. "I moved into a 1BHK at T Nagar last year for a rent of 12,000. Since it is manageable, and close to work, I didn't mind the rent. A year later, my friend rented a house, and she is paying nearly 19,000 for a similar unit," explained Nisha Krishnan, who had moved to Chennai from Coimbatore. According to real estate consultants, rents in Chennai increased by 20%–25% over the past two years. Some localities witnessed a jump of 30% or more. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Promoções imperdíveis de voos baratos Voos | Anúncios de Pesquisa Saiba Mais Undo "Gated communities, in particular, are leading this surge, charging 7%–8% higher rents than standalone buildings," said Sanjay Chugh, city head, Chennai, Anarock Property Consultants. He said Chennai recorded the steepest rental growth among major Indian metros in Q3 2024 — a 22.2% quarter-on-quarter rise in per sqft rental values. "A major contributor for the hike was slowdown in new construction activity, largely stemming from pandemic-related disruptions. This limited supply, coupled with sustained demand, led to a sharp rise in rental prices. However, with fresh housing supply gradually entering the market, rental inflation has now eased to single digits after nearly three years of steep increases," said Saurabh Garg, co-founder and chief business officer of NoBroker. Another key factor is the shift in workplace dynamics. "As companies scale back remote work policies, many professionals are returning to Chennai. Furthermore, the city's emergence as a prominent hub for Global Capability Centres (GCCs) — with more than 250 centres employing more than 150,000 professionals — has significantly amplified the need for quality rental accommodations near these employment clusters," he added. Premium areas like T Nagar, Adyar, and Besant Nagar remain in high demand, but suburban pockets are seeing the sharpest rental inflation. In places like Pallavaram and Perambur, rents jumped 33%–40%. Along Old Mahabalipuram Road (OMR), Sholinganallur, and Velachery — where IT offices, coworking spaces, and colleges cluster — the rent for 1BHKs now ranges between 18,000–30,000. In Vadapalani, a 2BHK in the arterial area can cost upwards of 45,000. What's more, furnished flats and short-term leases are gaining popularity, especially among landlords who want flexibility to adjust rents more frequently. "There's high demand for move-in ready homes, and tenants are willing to pay a premium for convenience," said Giriraj, a broker based in T Nagar. S N Srikanth, a member of Chennai Real Estate Agents Association, said there is still demand for rental houses in the core city due to the presence of schools and colleges, but the supply is not matching. "This is also triggering a spike in rent. Besides, property tax has been increased, and this has a cascading effect on the rents too," he said. With rentals eating up a larger portion of monthly incomes, tenants are adapting. Many are moving further from the city centre in search of affordability. Students and single professionals increasingly prefer co-living or shared housing over hostels, expanding the tenant pool in places like Tambaram, Kolathur, and Chromepet. "Velachery has become a hub for co-living spaces. Apart from this, Pallavaram Radial Road, Pallavaram, and other suburban areas are also booming," said Suresh Rangarajan, founder of Coliv.