Month: May 2024

Technological innovation at a breakneck clip has transformed the way we buy, sell, market or manage properties, and the Kolkata market is no exception. Emerging property technology (proptech) solutions like virtual/augmented reality, artificial intelligence, blockchain, big data analytics and Internet of Things (IoT) have collectively been a gamechanger, having a profound influence on the city’s real estate industry.

Not only are these innovations enhancing customer experience, smart tech is helping in streamlining operations, while augmenting efficiency across the value chain in the property segment. From identification of land and planning, to pre-sales marketing and post-sales service – real estate developers are using cutting-edge tech in every sphere to save time and costs, while boosting transparency.

Through immersive 3D virtual tours, home buyers can get a clear idea of the spatial layout and detailing of under-construction projects so that they can reasonably accurately visualize the end product before they commit to a transaction. Some augmented reality apps even enable you to virtually furnish your future home, thus positively impacting decision-making.

Realtors are also making use of AI and ML (machine learning) by way of using chatbots to handle customer posers 24×7 remotely, while AI algorithms help analyze erstwhile sales data and customer trends to help in planning new project launches and fixing pricing. Blockchain tech, on its part, is contributing to enhanced security and more efficient management of land records.

Here are some of the smart tech solutions transforming Kolkata’s realty segment:

# Digital property search: The days of trudging around town to find the perfect property solution are over, thanks to the digital revolution. The online real estate platforms have made property searches so much more convenient, as with just a few clicks, you can locate a clutch of properties in your preferred location that suit your budget. You can also converse online with property agents or the realtors directly.

# Virtual tours: The integration of virtual reality (VR) and 3D tours into the real estate domain has made property searches a breeze. From the comfort of your home, you can take an immersive virtual walkthrough of your dream home. The technology gives you a near-perfect sense of actual dimensions of under-construction projects.

# Data analytics: Thanks to the emergence of big data and predictive analytics, mountains of information on key subjects like property pricing and customer preferences can all be stitched together cogently for deriving key understandings. For the real estate industry, this is a boon since developers and marketing professionals can now adopt a largely foolproof data-driven approach to devise product-mix and pricing, thus minimizing risks and optimizing returns on investment.

# Smart homes: Thanks to the use of IoT (Internet of Things) devices, our homes are getting smarter by the day. Today, contraptions like thermostats, automated security systems, controlled lighting, etc. are transforming the way we utilize our living spaces. Use of such technology has also enabled the real estate industry to offer home-buyers greater energy efficiency, convenience and better security protocols. Needless to say, use of IoT devices hugely enhances the market value of any property.

# Blockchain tech: If there is one particular technological advancement that has improved a key attribute of the real estate industry in Kolkata, it is blockchain and smart contracts. Secure, transparent and tamper-proof transactions are what customers always seek, and is an element of constant anxiety. This technology can now enable automated, self-executing agreements between buyers and sellers, often negating the need for traditional intermediaries, thus cutting costs and reducing fear of fraud.

A leave and licence agreement is a legal document that gives the licensee permission to occupy the property of the licensor. As opposed to a rental arrangement, a leave and licence agreement gives the landlord greater power and does not transfer right of enjoyment of the property to the tenant. The licensee or tenant can only use the property for a certain period of time, adhering to some terms and conditions and the right of possession remains with the owner. Also, unlike leases, a leave and license agreement is not transferable.

Salient features of a leave and licence agreement:

# Owner-to-tenant transfer of interest is not mandated

# There are no property rights created

# The licensor and licensee can mutually agree on licence fee, deposit amount and other applicable levies

# The most common practice is to create a contract of 11 months’ duration

# The powers are skewed towards the owner when it comes to cancellation of the agreement or eviction of the tenant

How is a leave and licence agreement different from a lease?

# A leave and licence agreement doesn’t create an interest in property unlike a lease

# In a lease, the tenant gets exclusive possession of an immovable property while a leave and licence agreement simply allows the licensee to occupy a certain property

# A leave and licence agreement is not transferable like a lease

# The licensor can cancel a licence in a leave and licence agreement, but a lessor can’t revoke a lease

# While licences are determined by the grantor, leases are not

# A lease agreement creates heritable rights, but licences don’t

What are the pluses of a leave and licence agreement?

# It gives more power to the owner and makes eviction easier

# It doesn’t confer rights to the property, simply permission to occupy

# Property rights are not created in favour of the lessee

# Doesn’t involve any transfer of interest

# Falls under Indian Contract Act and not the Rent Control Act, since it’s not a tenancy

Points to remember before signing an L&L agreement:

# Party clause: The names of the owner and tenant, along with their respective addresses and proof of identity, are mandatorily required. If the deed is commercial in nature, the name of the firm as well as the corporate identification number (CIN) are necessary

# Definitions clause: This spells out all the terms and conditions of the agreement

# Premise clause: This must incorporate the situation, space, price and built-up areas of the rental property

# Responsibilities: The obligations and responsibilities of both parties must be clearly mentioned and those conditions must be legally binding

# Dispute resolution: The agreement must lay down modalities of resolving disputes, like arbitration, conciliation or moving court

Gone are the days when fixed deposits and gold were the only instruments of investment preferred by women. A recent market analysis reveals that nearly 68% of Indian women today are choosing real estate as a reliable and profitable avenue of investment over FDs and gold. While the risk appetite has surely increased, a clutch of tax benefits offered by the government also make this route more lucrative for women.

Here are some of the tax reliefs women enjoy:

# On home loan interest: Women can avail tax deduction on home loan interest payments under Section 24(b) of the Income Tax Act, going up to Rs 2 lakh per year. This can lead to substantial savings over the years.

# On home loan principal: Women investing in real estate can also claim tax cuts on the repayment of the principal amount of their home loan. This benefit can be claimed under Section 80C of the Income Tax Act, and is capped at Rs 1.5 lakh per financial year. Taxable income is significantly reduced, whittling down tax obligation.

# Benefits of joint ownership: When women opt for joint ownership of a property with a spouse or any other family member, both the parties can claim tax deduction benefits on both interest and principal components of their home loan.

# On capital gains: Selling any real estate property entails substantial capital gains tax. But women enjoy considerable slack in this regard. Under Section 54 of the Income Tax Act, a woman can claim total exemption from capital gains tax if she reinvests the proceeds from the sale of one residential property into another one within two years or builds a new property within three years.

# Lower stamp duty: In some states, women can enjoy a discounted rate of stamp duty for property registration if the property is in the name of a woman or co-owned by her. This rebate eases the burden of initial investment.

# Bonanza for first-timers: A few state governments offer supplementary benefits for women purchasing a residential property for the first time in the shape of extra rebate on stamp duty and registration fees, thus smoothening the entry process for them.

# Depreciation benefit: Women who live in rental properties can avail of tax deduction due to wear and tear by way of depreciation. Even when the property is not generating positive cash flow, it can provide a tax rebate.

In today’s scenario, women have emerged as a prominent segment of real estate buyer across the country, and are influencing market trends as well, more so in metros and large cities. So much so, that developers are heeding their preferences with utmost alacrity and planning their fresh portfolio of products as per the preferences of women buyers.

Several government schemes are also contributing towards women’s home ownership. A case in point is the Pradhan Mantri Awas Yojana (PMAY), which ordains that to qualify for the scheme, homes must be registered in the name of a woman or by making a woman joint owner. This has also provided a shot in the arm for women from the poorer sections of society. So, at both ends of the property-buying spectrum, women are playing an increasingly active role.