Buying your first home can be quite an emotional decision for many. But you cannot forget that this would be one of the biggest legal transactions of your life, and stay vigilant to protect yourself from undue stress.
Whether you are a first-time home buyer or looking to purchase a resale property, the legal process for buying a residential property includes the following steps:
• Property search
• Legal due diligence and documentation
• Negotiation and agreement
• Home loan approval
• Registration
• Possession and handover
Although the specifics of these steps may vary, you will be following this process in general; and you cannot afford any missteps – especially when it comes to legal due diligence and documentation.
So what are some of the key legal aspects and requirements you must understand to safeguard your investment and ensure a clear title on your residential property?
The first and most important step is to verify the property title with the necessary documents going back at least 30 years (minimum 12 years if previous documents are not available). These documents can help you verify:
• The title documents (indicating the transfer of title over the years)
• Nature of the title
• Development agreement or power of attorney
• Pending and past litigations against the property
This can help you ensure the nature and marketability of the title and establish a clear title free from encumbrance.
The next – and equally important step – is to identify the seller and their ability to convey the property. This includes information like:
• Residential status of the seller (in case you may need special government authorization for the sale)
• Identity and consent of all owners (in case of jointly held properties)
• Court order authorizing the sale and appointing a guardian (in case of property held by a minor or an individual of unsound mind)
Documents like Aadhaar numbers, PAN, passports, or income tax returns can help you ascertain the identity(s) of the seller(s) and establish they have the proper authority to sell the property.
Many state and national laws restrict the ways land can be used, making ascertaining the type of land the property is on – residential, commercial, industrial, or non-agricultural – essential. So ensuring the property stands on non-agricultural residential land is essential as non-agriculturists may get in trouble for purchasing agricultural property.
Additionally, you must ensure that the property complies with the zoning plan. If the actual land use differs from the zoning plan, getting the necessary approval from the Town Planning Authority for a change of land use is mandatory.
In case you are buying an apartment or a constructed building, validating the construction plan and necessary approvals from relevant authorities is crucial. This includes approval and NOCs from different departments – like the Pollution Board, Environment Department, Traffic and Coordination Department, and many more – to ensure access to infrastructure facilities – like water, electricity, sewage, environmental clearance, fire safety, and more.
Occupancy certificate – indicating the property meets all regulatory and statutory requirements and is fit to occupy – from the competent authority is mandatory. Use – or sale – of property without such approval leaves buyers vulnerable to penalties and risk of demolition.
Non-payment of taxes can affect the marketability of a property. So ensuring the seller has cleared all their dues – tax and utilities – is crucial. Otherwise, the buyer will be liable to clear all pending dues against the property.
Be sure to check any registered encumbrance on the property before buying the property. You can search at the jurisdictional sub-registrar office, the website of the Ministry of Corporate Affairs (in case of a corporate seller), or issue a public notice to find any third-party claims against the property.
It is advisable that a buyer undertakes a physical survey to confirm the extent and measurement of the property against the information provided by the seller.
Especially when purchasing land, identifying the boundaries, access, and any other physical attributes can help ensure you can enjoy your property properly.
Any project falling under the scope of the Real Estate (Regulation and Development) Act, 2016 (RERA) has to be registered with the RERA authority. So be sure to check the RERA registration of the property – and the real estate broker – before purchasing the property to establish the credibility of the project and the seller.
In case you are buying a resale property, be sure to verify whether there is a loan outstanding against the property. You can ask the seller to clear the outstanding loan amount to get the original property documents from the bank and register the property in your name to get a loan of your own. Or you can apply to transfer the loan from the seller’s name to yours and continue to make payments. In any case, be sure to get copies of the title documents, loan outstanding statement, and no dues certificate from the bank to ensure a clear title.
This is a general legal checklist you must consider before buying a property in India. However, it is advisable to work with a skilled legal expert to conduct proper due diligence, examine every small legal facet, and ensure the safety of your investment.
Need help to understand the legal requirements when buying a property? Squarea expert team can direct you to the right resources and help safeguard your real estate investment. Get in touch with us today to find the home of your dreams.
For more details on this subject, please email hello@squarea.io
PUNE, MAHARASHTRA, INDIA, February 13, 2025 / EINPresswire.com / -- This Sunday, 16th February, SQUAREA presents GIME 2025, Pune’s first-of-its-kind Global Investments, Mobility & Education Roadshow, in partnership with Henley & Partners at Hyatt Pune, Kalyani Nagar. This exclusive event is designed for investors, entrepreneurs, and families looking to secure global residency and citizenship through investment-led routes. As economic landscapes evolve and international mobility becomes increasingly valuable, GIME 2025 will host global experts and offer strategic guidance into International Golden Visa, Permanent Residency, and Citizenship Programs, through cross-border wealth planning, investment, and business expansion routes.
The event will host programs and country experts from the United States, United Kingdom, Canada, Greece, Portugal, and Latvia. Key programs up for discussion will include the U.S. EB-5 Immigrant Investor Visa, which offers an expedited route to the U.S. Green Card; Portugal’s Golden Residence Permit, a preferred option for those looking to secure Schengen residency through investment; and Canada’s Start-Up Visa Program, designed for tech entrepreneurs aiming to establish and scale businesses in North America. The event will also offer Greece’s Golden Visa, the United Kingdom’s Business Investment and Citizenship Program, and Latvia’s Residency by Investment Program. Alongside, UAE’s Golden Visa Program will also be present.
In an era where investment migration is increasingly becoming a critical component of growth and lifestyle planning, GIME 2025 aims to bridge the gap between investors and global opportunities.
Investing in real estate is a pivotal decision, one that hinges significantly on the choice of location. Whether you are buying property for the first time or adding to your investment portfolio, the question often comes down to this: Should you invest in the vibrant heart of the city or explore the expansive suburban regions? In 2024, India's real estate landscape continues to evolve, with significant developments in both urban and suburban areas. In such a scenario, understanding the best real estate investment areas has become essential for both investors and homebuyers.
The Indian real estate sector is projected to reach an estimated value of $1.5 trillion by 2030, with a compound annual growth rate (CAGR) of about 9.2% from 2023 to 2028. The first half of 2024 saw a continued surge in residential sales, reaching 173,241 units, an impressive 11% year-on-year growth. This positive trend indicates a strong demand for housing in the market.
This blog delves into the key considerations, the pros and cons of each option, and the latest market insights to help you make a well-informed decision.
Before diving into detailed insights, it’s essential to understand the key factors that distinguish urban and suburban real estate investment areas:
Alt text: A comparative glance at the key differences between city and suburban real estate investments.
Urban centers across India remain hotspots for real estate investment due to high demand, robust infrastructure, and proximity to key amenities. Cities like Mumbai, Pune, Bengaluru, and Delhi are well-known for their vibrant job markets and advanced infrastructure, making them some of the best real estate investment areas.
1. High Demand and Fast Appreciation : Urban properties often see quicker appreciation. Mumbai's prime localities like Bandra and Powai saw an average price increase of 7-9% in 2023-2024 (Knight Frank India's Prime Residential Index). While in Pune, Koregaon Park has seen consistent appreciation of 6-8% annually, making them ideal for short-term investments in the best real estate investment areas.
2. Proximity to Amenities : Cities offer a wealth of amenities such as hospitals, schools, restaurants, and entertainment venues. Pune is renowned for its educational hubs, adding to its appeal as one of the best real estate investment areas in India.
3.Job Opportunities: Major cities house industries across sectors like IT, finance, and manufacturing. For instance, Pune’s IT hubs and tech parks attract a large workforce, making it a strong contender for real estate investment areas in India.
Public Transportation : Urban transport systems, like Mumbai’s local trains or Delhi’s metro, including Pune’s ongoing metro project, boost property values around transport hubs, solidifying their status as the best real estate investment areas.
Longer Commutes: Suburbs can be farther from major job centers, increasing travel time. However, with improved transport networks such as the Pune Metro Extension, connectivity to suburban areas is gradually improving.
Limited Social Infrastructure: While development is ongoing, many suburban areas still lack the robust social infrastructure found in cities. This can be a drawback for those who value proximity to shopping malls, entertainment centers, and restaurants.
In 2024, both urban and suburban markets in India are poised for growth, driven by government initiatives, economic recovery, and rising demand. Programs like PMAY and RERA have improved transparency, making suburban regions particularly appealing. The ARHC scheme also enhances suburban areas by providing affordable housing near industrial hubs. Meanwhile, smart city projects are revitalizing urban centers, boosting livability and sustainability.
Urban investments offer faster appreciation and proximity to job markets, while suburban areas provide affordability and space. Your choice depends on your financial goals and lifestyle preferences.
If you still find it difficult to decide, contacting a real estate expert like Squarea can help you navigate the complexities of property buying and investment in India.
Primary Keyword: Factors Affecting Property Prices in India
Secondary Keywords: Real Estate Market in India, Property Price Trends
Investing in real estate is a significant decision for homebuyers in India. Real estate constitutes an appreciable percentage of most people’s wealth. The real estate market in India is influenced by various dynamic factors that drive property price fluctuations. All these factors affecting property prices in India are very important for home buyers and investors to understand to navigate this complex scenario and make the right decisions. It attracts as well as creates huge opportunities for investors because of the size and scale of this real estate market.
In this article, we will discuss and analyze the main factors affecting property prices in India.
Experts predict moderate growth for the Indian real estate market. ICRA and Colliers suggest a shift from last year's rapid expansion to steadier progress. ICRA anticipates price stabilization, while Colliers highlights infrastructure projects and economic recovery as key drivers of resilience.
The seven major metros—Mumbai, Delhi NCR, Bangalore, Chennai, Pune, Hyderabad, and Kerala—are set to experience varied growth:
Mumbai: 5-8% rise, driven by metro expansion and coastal projects.
Bangalore & Hyderabad: Increases of 6-9% and 7-10%, respectively, due to the IT boom.
Chennai & Pune: Expected gains of 5-7% and 6-8%, aided by residential demand and metro expansions.
Kerala: 3-5% growth from NRI investments and tourism.
(Sources: CBRE India, JLL India, Colliers).The nexus between economic growth and property prices is well-established. India's real GDP expanded by 7.2% in FY23, the highest among major economies, fueling real estate demand. Q1 2024 saw record residential sales with 74,486 units sold, driven by large-scale projects, smart city initiatives, and urban renewal programs
Interest rates are a key determinant of property prices. Lower rates reduce borrowing costs, boosting demand, while higher rates may curb it. RBI's 2024-25 monetary policy aims to balance inflation and growth, shaping housing market trends accordingly.
Government policies directly impact the supply-demand curve of the real estate market in India. Policies like the Real Estate (Regulation and Development) Act (RERA), 2016 have increased transparency, boosting buyer confidence. The Pradhan Mantri Awas Yojana (PMAY) and GST reductions on under-construction properties enhance affordability, stimulating investments in new developments.
With 600 million people expected to live in cities by 2030 (40% of India’s population), housing demand is on a continuous rise. Bangalore, Hyderabad, and Pune are key beneficiaries, driven by industrial growth and skilled professional inflows.
The quality of infrastructure is another factor that determines values in properties. Areas well connected with transport, educational institutions, and health facilities attract a premium. Infrastructure projects like the Mumbai Trans Harbour Link and Bangalore's Namma Metro are expected to raise property prices by 20-30% in adjacent areas, highlighting the importance of connectivity for real estate appreciation.
The balance between housing supply and demand significantly impacts prices. In markets with high demand but limited supply, prices rise due to scarcity. Conversely, areas with abundant supply may experience stable or declining prices. For instance, the luxury housing segment in cities like Delhi NCR is seeing higher demand, driving prices up. In contrast, markets with substantial affordable housing inventory show more consistent rates.
Building material costs (steel, cement, labor) influence property prices. Developers often pass these increases to buyers, especially in high-cost cities like Mumbai, where land acquisition also inflates prices.
Job growth in IT and finance sectors, especially in Bangalore, Hyderabad, and Pune, increases housing demand. The Indian IT market is expected to reach $19.93 billion by 2025, further boosting residential real estate.
Industrial corridors like the Delhi-Mumbai and Chennai-Bangalore are enhancing property values in surrounding areas, supported by job creation and infrastructure improvements
Property price trends vary significantly across different regions, influenced by factors such as local economic activity, infrastructure development, and regulatory environment. Pune’s residential market claimed a substantial 16% of new residential launches across India’s top cities in Q2 2024 – adding around 18,900 units and marking a steady 1% quarterly increase.
Understanding the several factors affecting property prices in India is very important for home buyers and investors planning to invest in the real estate market in India. Staying informed about these factors is key to capitalizing on opportunities and navigating potential challenges.
For those looking to deepen their understanding and make informed decisions in this dynamic environment, consulting with experts in the field can be invaluable. SQUAREA offers insights that can help you navigate these complexities and align your investments with market trends.