Why it is the ideal time to invest in Mid-Budget Flats in Kolkata right now

Want to buy a home in your early thirties?
Are you looking for compact apartments in a metro city?

The industry experts suggest that investing in mid-budget flats in Kolkata can lead you to the throne. Research indicates that 80% of the young homebuyers consider property portals (esp video contents) while choosing an apartment. But there are other prime facts too which can return the maximum on your investment. One essential fact would be keeping yourself updated with the latest governmental announcements related to the residential realty segment. Keeping a close track on the institutional declarations is a pivotal fact to be considered while buying your home. If you miss out any, you could end up paying higher than the actual price.

Reportedly, the booking of mid-budget flats in Kolkata has increased over 20%-25% during the last fiscal. Want to know why?

Read on: In its recent announcement central government has allotted Credit Linked Subsidy System (CLSS) to the Middle-Income Group housing category coupled with an increased Floor Area Ratio (FAR).  It means middle-income group affordable housing (both MIG-I & MIG-II categories) are now eligible to claim the CLSS benefit provided by MIG-I category should have a carpet area of 160 sq meter or 1,722 sq ft and for MIG- II category it is 200 sq meter or 2,153 sq ft under the Pradhan Mantri Awas Yojana (PMAY-U) Urban. The CLSS for MIG scheme started gaining impetus in the last couple of quarters and the growth is indeed noticeable.

Since the affordable housing sector has turned out to be the newest sales outpouring source for the real estate sector in India, the Ministry of Housing & Urban Affairs (MHUPA) is absolutely leaving no stones unturned in order to give it a further boost.

It’s an open secret that the word ‘affordability’ varies from state-to-state based on several parameters such as- availability of land, socio-economic structure, cost of living, potential growth factors and lots more.
Buying flats in Kolkata meet all these said parameters successfully. And the best part is most of the top-level housing development of these days fit into the said CLSS beneficiary with ease.

Previously, there was an increment of carpet area for both MIG categories. It took the sales of affordable homes higher across the metros by 15%-17%.

Now under the revised rules, homebuyers with annual household income from Rs 6 lakh to Rs 12 lakh would be eligible for MIG I category, while MIG II for income needs to be above Rs 12 lakh up to Rs 18 lakh. Interest Subsidy for MIG I and II will be 4% and 3%, correspondingly for maximum loan tenure of 20 years.

The adequate home loan amount for interest subsidy will be Rs 9 lakh and 12 lakh for MIG I and MIG II category, in that order. Loan quantum above this limit will be at non-subsidized rates. In its recent release the ministry has declared that as on 11.06.2018, an amount of Rs.736.79 crore has been disbursed to 35,204 beneficiaries belonging to the MIG categories.

The range of the CLSS e was expanded to MIG category with the approval of the cabinet In February 2017. The scheme got its approval for implementation in the year 2017 has been stretched up to March 2019.

The recent home loan revision decision of Reserve Bank of India (RBI) foreshadowed the revised CLSS announcement by the housing ministry. As per the revised home loan structure of RBI, the housing loan limits for PSL eligibility from existing Rs 28 lakh to Rs 35 lakh in metropolitan centres (with population of 10 lakh and beyond), and from existing Rs 20 lakh to Rs 25 lakh in other centres, provided the by and large cost of the housing unit in the metropolitan centre and at other centres do not surpass Rs 45 lakh and Rs 30 lakh, respectively.

“Government’s decision to increase the carpet area further will expedite the construction part of affordable housing sector along with a close quality check. Since most of the mid-budget flats in Kolkata fall under the CLSS benefit scheme, the overall sales are expected to get a sizable augment in the coming years or so,”- says Mr. Mahesh Somani, Chairman- National RERA Committee, National Association of Realtors, India.

The increased construction activity in residential segment is about to reflect on the demand and supply chain of the core segments like- cement, steel, equipment and the other related segments. There will be a wider open horizon for the skilled and unskilled workers with the growing housing construction process across the urban areas of the country.

This is like a digging gold mine opportunity for the MIG flat buyers. People who have been in search of mid-budget flats in Kolkata, this should be the perfect time to plunge in.