Women are becoming a larger part of the workforce in India’s cities, and real estate is an asset class that represents protection, security, and a good return on investment for them. According to a recent poll, 77% of women are now purchasing homes for their own use, while 23% are investing. Women who invested in real estate did so after conducting due diligence, according to the research. This leads to the conclusion that the dual benefits of capital appreciation and rental income motivate women to invest in real estate.
Reduced house loan interest rates, reduced stamp duty, eligible tax benefits, and special women’s day deal sweeteners from developers are all elements that motivate this sector to take the plunge and purchase their own home.
It has also spurred authorities to propose incentives for female property purchasers. The CLSS interest subvention plans for first-time women house purchasers under the PMAY-U programme are an excellent example, as is the requirement that women be co-owners or sole owners of inexpensive homes.
According to recent media sources, 47 percent of women property house purchasers are between the ages of 25 and 35, with 41 percent between the ages of 35 and 45; both of these age groups are ideal for purchasing a home. Women’s migration to metropolitan areas appears to be smart, with careful diligence performed prior to closing a house purchase contract, with accessibility and community living as significant choice factors.
Real estate is the favoured asset type for as much as 62 percent of Indian women. In addition, at least 82 percent of women purchase a property for personal use. Furthermore, women’s choice for real estate has increased post-COVID-19, rising from 57 percent in the pre-COVID poll to 62 percent in the current edition.
Women will purchase a home for end-use 82 percent of the time and 18 percent for investment, while males will buy for end-use 68 percent of the time and 34 percent for investment.
Over 70% of female respondents believe that now is the best time to buy a home. According to the poll, at least 66 percent of women who want to purchase a property would do so in the inexpensive and mid-segment housing market (with a budget of less than Rs 90 lakh).As many as 5% voted for ultra-luxury real estate priced over Rs 2.5 crore, it said.
The survey also revealed that most polled women homebuyers prefer ready-to-move-in homes, reflecting a strong aversion to the perceived investment risk of under-construction properties. Nearly 71% of women respondents want to buy ready homes, followed by 11% each for homes that will be available for possession in the next 6 months, and newly-launched projects. If we consider the overall survey results for both genders, ready homes had 29% votes in their favour.
When it comes to purchasing a home, a woman considers practical usefulness and practicality. The woman house buyer seeks a property that provides security, likes mid-size apartments to accommodate numerous demands, and considers the long-term growth potential.
- To Improve One’s Quality Of Life
Over the previous few decades, the number of women working has steadily increased. Women’s purchasing power increases as their educational and career possibilities expand. Women are increasingly making their own financial decisions, which have resulted in an increase in the number of female homebuyers. Furthermore, having a home provides a sense of security, allowing you to construct a personal refuge, and eliminates the hassle of relocating every year.
The dual benefits of capital appreciation and rental income are driving more women to own homes. Integrated townships have also created ‘walk-to-work’ alternatives, allowing more Indian women to continue or restart employment. Work-from-home opportunities have further heightened the importance of owning or extending a house. There is a rising awareness that having a property protects children from exploitation and serves as an asset that may meet their needs at various phases of life.
- There are a lot of Incentives
Developers, regulatory authorities, and financial institutions are offering a slew of incentives to women who want to invest in real estate. Stamp duty fees, for example, are lower when property is registered in the name of a woman; however these fees vary by state. “In its Budget for 2021-2022, the Maharashtra government provided a 1% stamp duty rebate for female buyers of flats. So, instead of paying the standard stamp duty of 5% in Mumbai, a woman buying a home for herself would pay 4%. Home ownership is also encouraged in India by a variety of government measures.
Almost all lenders give women cheaper interest rates on house loans (in the range of five to ten basis points). While this may appear to be a minor figure, reduced policy rates have resulted in lower lending rates from banks and financial institutions. These lower rates translate to reduced EMIs for women borrowers, which might result in significant interest savings over the course of the loan.
Women’s Monetary Advantages
The government has made several unique offers, specifically for women house purchasers, in order to make women financially stable and independent, as well as to increase their participation in the real estate market. Some advantages of purchasing a house in the name of a female family member are as follows:
The Perks of PMAY
The government’s main initiative is the Pradhan Mantri Awas Yojana, or PMAY for short. Women applicants would be eligible for a subsidy of up to 2.67 lakhs under this plan, however there is a stipulation that the property on which the loan is obtained must be the first house in the applicant’s name. Only the first home purchased under the plan is eligible for the benefit. A residence must also be registered in the name of at least one woman in the household, according to the PMAY criteria.
The government has organised CLSS into four primary sections to provide advantages to various sorts of women:
1) Women from the Economically Weaker Section (EWS) would receive a 6.5 percent subsidy on housing loans up to Rs 6 lakhs if their yearly income is less than or equivalent to Rs 3 lakhs.
2) Low Income Group (LIG): Women with an annual income of less than or equal to Rs 6 lakhs would be eligible for the same benefits as EWS women.
3) Middle Income Group – 1 (MIG-I): women with an annual income of not more than Rs 12 lakhs would receive a 4% subsidy on a house loan of up to Rs 9 lakhs in this group.
4) Middle Income Group – 2 (MIG-II): This group would receive a 3% subsidy on house loans up to Rs 12 lakhs for women with an annual income of not more than Rs 18 lakhs.
Women house purchasers or those purchasing a property in their name would be eligible for an interest deduction of up to Rs 2 lakh each financial year. In addition, if a married couple owns a home together but earns separately (i.e., the husband and wife’s income is different), they can each claim a tax deduction.
Low stamp duty has the following advantages: In India, certain states charge less stamp duty to women house buyers than to males, or to those who register property in women’s names. In Delhi, for example, a woman house buyer must pay 4% stamp tax, but a man must pay 6% stamp duty on the identical property.
Benefits of getting Home Loans at a Lower Rate
As a lender, one hopes that the money he has given will be returned on time, and it is thought that money given as a loan to women is safer than money given to men because it is assumed that women will return the money with interest on time and have a lower risk of fraud. It is also assumed that women are more sincere, which is why leading banks and NBFCs provide home loans to women at lower interest rates, as well as with interesting schemes and offers to encourage them.
A look at Government Policies that support Women Homebuyers
In India, a number of government measures encourage and help women to become homeowners. For example, to qualify for homes under the government’s flagship initiative, the Pradhan Mantri Awas Yojana (PMAY), which was launched in 2015, residences must be registered in a woman’s name or with women as co-owners. This was done in order to empower low-income women.
Women also benefit from lower stamp duty when purchasing a home. Stamp duty fees are reduced when property is registered in the name of a woman, albeit these fees vary by state.
Women’s tax exemptions vary per state, ranging from 1% to 2%. It may even differ within a single state, depending on how ‘urban’ and ‘rural’ regions are classified. Women purchasers might get stamp duty exemptions in places like Delhi, Uttar Pradesh, Rajasthan, Punjab, and Haryana. Male and female homebuyers differ by 4% in Punjab.
When compared to men, many banks provide women with lower home loan rates. Again, this differs per bank, but it may be as much as 0.25 percent. The current cheap property rates, along with home loan rates that are at a 15-year low, are undoubtedly beneficial.
Given that employment has most of them nesting in houses distant from their family, it makes sense for this rising sector of ambitious female home buyers to buy homes in integrated townships, which would assure their comfort and convenience while enjoying the benefits of community life. Integrated township living incorporates everyday needs such as education, healthcare, high-street shopping, entertainment, and daily convenience, all of which are tailored to the individual’s lifestyle. It also has choices for ‘walk to work,’ ‘work from home,’ and’remote location work.’ Holistic living allows women house buyers to achieve a balance between work, life, and play while also improving their standard of living in a safe environment.
Their development quotient is shown by their eco-friendly and green ecology, which strikes the perfect balance between mental, emotional, and physical well-being. Industry wants increased power to this rising group on Women’s Day 2021, and welcomes them as new ‘Home Owners.’