If you are a prospective homebuyer and have been waiting to buy your dream home for sometime now, then you need to hurry up. For, this may be the most suitable time to own a piece of property for self use or for investment purposes.
Various studies conducted recently suggest that homebuying sentiment has already gone up substantially as most people are looking for a roof over their head or a bigger home in times of the pandemic. Housing.com’s ‘IRIS index’, for instance, has revealed that online searches for residential properties touched an all-time high in September 2021, with Delhi-NCR topping the chart. “This was on the back of positive consumer outlook amid easing concerns on the Covid-19 front, historically-low home loan interest rates and flexible payment plans being offered by realtors to attract homebuyers,” the study noted.
The 30th Edition of Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q3 2021 (July – September 2021) has also cited that both the current and future sentiments of real estate sector have improved across all parameters in Q3 2021, on account of the economic recovery in the making. In Q3 2021, the Current Sentiment Index score rose to 63 – the best ever, after the dismal score of 35 recorded in Q2 2021, while the Future Sentiment Index score rose from 56 in Q2 2021 to 72 in Q3 2021, which is also the highest ever in the history of the Index.
In fact, stable property prices and cheaper home loans, along with many other reasons, provide incentive enough to go for one’s own home. Here we are taking a look at some of the top reasons to buy your dream home this festive season or in the near future.
1. Stable property prices
Hit hard by the pandemic and influenced by some other factors, property prices in India have been subdued for a couple of years now, which makes it a good time to buy or invest in a housing unit.
According to a recent report by Knight Frank India, for instance, housing sales rose by 67% YoY in H1 2021, however, housing prices remained mostly contained during the same period with a reduction of -1% to -2% year on year (YoY).
Some other reports have also highlighted this fact. However, property prices may not remain at the current level forever and are bound to rise going ahead. This means that one may have to pay more for the same property in the months to come.
2. Property prices may go up in near term
Property prices in the nation’s top cities are stable for a long time. However, the situation may change in the coming months as the demand for housing is rising fast and the cost of raw materials is also going up substantially, which may force a majority of developers to hike the prices of residential units.
“Expectations that the pandemic would cause property prices to crash were dashed by the fact that demand for housing is so strong. This demand coupled with the increased construction input costs to developers will cause the prices to rise sooner rather than later. Property prices are at their lowest best currently. While costs to developers have gone up, they have managed to keep the prices down in order to harness the demand from the festive season – and even added lucrative discounts and offers,” says Santhosh Kumar, Vice Chairman, ANAROCK Group.
3. Ample housing options
The market has more than sufficient options to choose from this festive season. More importantly, buyers can opt for ready-to-move-in homes from the country’s most reputed developers. The festive season is the right time to scout the market and make the most of offers on some of the best projects because there is such a tempting choice range, at low prices during the most auspicious time of the year to invest in homes.
4. Cheapest home loans
Home loan interest rates are at an all-time low currently, making it an opportune time for potential home seekers.
“Several banks and housing finance companies are offering favourable interest rates starting from as low as 6.4 per cent to encourage end users. Such low interest rates provide a lucrative advantage to those seriously planning to make a home purchase, thus pushing the overall housing demand across key markets in the country,” says Shveta Jain, MD, Residential Services, Savills India.
Kumar adds, “We do not expect the RBI to keep the repo rate reined in much longer. But currently, home loan interest rates are at the lowest we’ve seen in 15 years or more. Many banks have reduced their rates to coincide with the festive season. Therefore, locking in the most advantageous interest rate during this period makes complete sense.”
5. Lucrative offers from developers
Post COVID-19, most of the developers have rationalised their prices, thereby improving affordability for the homebuyers. Besides, many of them have also come up with attractive deals and discounts to lure the prospective buyers.
“As the festive season is currently on, developers are further providing deals, discounts and offers which include cash discounts, freebies, flexible payment options, incentives such as short-rental return, offers on floor rise, etc to incentivise the purchasing process. The festive season coupled with lucrative offers from developers comes as an attractive period to invest in property,” says Jain.