V Nagarajan

Defying the second wave of Covid-19 pandemic, end users across India are rushing in to buy readily built homes to take advantage of the multiple sops offered in the market.

The reasons are twofold. There is a supply side constraint with minimal project launches for the past three years. Lack of adequate government support and piecemeal gestures did not encourage property developers to improve supply level.

The unsold inventory, all time low home loan lending rates, stable prices, and flexibility in payment terms have all boosted the housing sales during Q1. A few states like Maharashtra have even reduced the stamp duty in the interim to boost the housing sector.

 According to Anarock first quarter survey, mid-segment housing saw the maximum new launches in the first quarter with a 43 per cent overall share, with the affordable housing segment accounting for 30 per cent. The supply of luxury housing (priced INR 1.5 crore) also rose by 31 per cent in Q1 2021 against the corresponding period in 2020.

 Luxury housing sales across major cities have gone up by 21 per cent in February this year, says PropEquity data.

 Anarock survey reveals that as many as 58,290 homes were sold in the top seven cities in Q1 2021 in comparison to 45,200 units in Q1 2020. MMR and Pune together accounted for 53 per cent of housing sales in the quarter - MMR sales increasing by 46 per cent annually, and Pune by 47 per cent. With approximately 8,670 units sold, Bengaluru was the only city in the top seven cities to not record a major yearly change in total sales numbers in this quarter. In Chennai, approximately. 2,850 units were sold - an increase of 30 per cent over Q1 2020. The city added approximately 4,620 units in Q1 2021, a Y-o-Y increase of 25 per cent over Q1 2020.

 New launches in the top seven cities yielded 62,130 units in Q1 2021, against 41,220 units in Q1 2020. Again, Bengaluru was the only city to see a 11 per cent yearly drop in new launches. MMR, Pune, and Hyderabad together contributed 66 per cent of the total new supply in the quarter.

 Average property prices in the top seven cities saw some movement in Q1 2021, with most cities recording a rise of 1-2 per cent over Q1 2020 - except Kolkata, where prices remained stagnant. NCR and Bengaluru saw property prices rise by 2 per cent during the year.

 In a related development, foreign portfolio investors (FPIs) parked $497 million in the Indian real estate sector in March. Investor sentiment has improved due to a combination of factors like declining inventory, improving sales and the initial public offering by realty companies like Macrotech Developers.

 I am living in the Gulf and invested in Bengaluru property. I would like to settle the property in favour of two children. What is the option to execute this? Please clarify. Shine Jose, Sharjah.

The ideal way is to write a Will and transfer the self-acquired property in favour of your children in India. It is only after your demise, the children can acquire the property. They are at their will to reside or sell the property. However, if there are any loans outstanding with any financial institution, your children will be liable to clear it before acquiring the property in their names.

As regards registration, a Will does not compulsorily require registration. However, a registered Will is certainly a safer option in order to avoid needless controversy in the family. A Will may be presented for registration or deposited at any time.

It does not require registration within four months of execution as is required in cases of other documents.

The Will may be presented for registration by the testator during his lifetime or by any person claiming as executor or otherwise under a Will, after the death of the testator.

I have been living in the Gulf for the past three years and recently received an immovable property by way of gift from my relative in India. Can I dispose of the gifted property and repatriate sale proceeds to my foreign account? Satish, Dubai.

You can repatriate the immovable property received by way of gift from your relative in India. The sale proceeds of the immovable property should be credited to NRO account only.

From the balance held in the NRO account, you may remit upto US$1 million, per financial year, subject to the satisfaction of the authorised dealer and payment of applicable taxes. You may be required to file tax return for property sale income and taxes paid on it.