Is this the right time to buy your dream home?

Coronavirus has given a hard time to almost every industry, is this the right time to buy a home or invest in property?

Real estate is booming because of coronavirus, can you believe it? but it is truly

the reason is whoever staying in a rental home, had faced many problems from their homeowners, Tenet can not go out without homeowner permission during lockdown

most of the tent have gone to their native place more than 3 or 4 months homeowners did not reduce the rental amount, some of them did, of course, many of them did not

the people who have money simply did think to buy a home but not shown much interest to buy a home. after corona lockdown they will understand how much is important to buy an own home for each every family basic requirement

Real estate sales have decreased during lockdown investors did not like to spend any money in this industry but after corona lockdown prices did not drop much in this field, in fact, many new projects were launched in the major city in real estate.

Positively influencing the market

if we go back to 2008 on a time machine when the world has faced a crisis like a dot-com crash, or the oil crisis, or the global financial crisis (GFC) of 2008, the economic health and financial position of the residential real estate market is relatively better currently.

During the GFC the residential market valuations were facing huge problems if we compare now it is more realistic now. Unlike 2008, the nature of the markets has also changed. While in the past it was a seller’s market, now it is a buyer’s market. We have also seen a significant reduction in home loan rates. They are much lower than the rates in 2008-09. At the same time, our banks are in a better position to lend now compared to the past. The speculative fear is much less compared to the market scenario during 2008 and 2009,

The Home loan interest rates a record low

India"s home loan market is anticipated to grow at a brisk rate of around 22% during 2021 - 2026 on account of increasing urbanization and affordable mortgage rates. The Housing loan rate is low in India when compared with developing economies, presenting opportunities for the growth of the home loan market in the country. Moreover, The government push towards affordable housing coupled with an acute shortage of housing is further expected to drive Indian home loans over the next five years.

Most of the banks reduced bank interest rates as per RBI rules and regulations.

there has been a rise in home loan applications by 25-40 percent across cities. Industry experts say with people looking to shift to bigger homes due to the prolonged work from home, has led to an increase in demand for home loans. as per home loans department centers

According to the data, Chennai and Hyderabad have seen 40 percent growth in the average home loan ticket size; while Mumbai and Pune are also showing an increase of 30 percent.

Amit Agarwal, CEO, NoBroker, says, " important things is that government and bank initiatives such as reduced stamp duty and rock bottom interest rates. Therefore, homebuyers can get a bigger house on the same budget. This combined with attractive discounts from buyers has resulted in expanding the buyers’ budget.” Such reasons have pushed the buyers to borrow for more home loans and commit free capital to other investments.

Post-pandemic, there has been a renewed demand for buying homes, leading to higher sanctions and disbursals of home loans. the portal has witnessed an increase in disbursals of the loans by 200 percent during the December 2020 – January 2021 period compared to YoY and has seen a growth of 250-300 percent in cities like Mumbai and Bangalore.

Faster recovery cities at the same times fighting with pandemic

As Indian cities breathe back to life after a once-in-a-lifetime event, they are trying to reclaim what they once took for granted. Much of our urban life revolves around work and commutes. The pandemic-induced lockdown upturned both. Even as workplace mobility gradually recovers across the country, many offices in India’s biggest cities have institutionalized work-from-home norms to ensure business continuity.

and this is quite evident in the recovery that’s being witnessed currently. Bengaluru, followed by Pune, Hyderabad, and Chennai, is actually doing better compared to other cities. As noted above, we are in the midst of a very benevolent interest rate regime with the repo rate being the lowest compared to the 2008 levels. So are the other benchmark rates.

it is a buyer market after a long time

This is the right time to buy your dream home because the price is very reasonable. many developers are ready to discuss the price factor. it can not be a fixed price for any property nowadays.

“In fact, it is probably the best of times for end-users to buy property because prices are as low as they will get and some developers are willing to negotiate further. End-users have a wide selection of options to choose from in almost all locations and budget bandwidths, and can buy ready-to-move-in properties at prices which were previously seen only in under-construction projects,” says Anuj Puri, Chairman, ANAROCK Property Consultants.

Good deals

Those kinds of offers and realty deals which homebuyers are getting now are usually seen only during the brief festive period. Thus, because of the above-mentioned reasons, it surely seems to be an ideal time to buy a piece of property. However, it may not be an optimal time to buy property for investment if the view is on capital appreciation unless one has a really generous investment horizon. “An investment property can nevertheless generate steady rental income, but this aspect needs to be thoroughly researched before making a purchase,” advises Puri.