Mani Rangarajan, Group COO of Housing.com in Machan, said: .com and PropTiger.com.
“In addition to these factors, the growing need for homeowners in the pandemic has also boosted housing demand over the past six months,” said Rahul Purohit, Head of Sales for India at Square Yards.
Due to these factors, homebuyers sitting on the fence took the plunge. Sales in the second half of fiscal 2009 reached approximately 80% of the same period of the previous year. However, the Maharashtra government has not extended a temporary reduction in stamp duty, and the Gurgaon administration has raised the pi in several places since April 8. Mortgage rates have bottomed out (SBI withdrew its limited-time offer and raised interest rates from 6.70% to 6.95%). In addition, there are other waves that can affect construction activities.
Will we continue to provide homebuyers with a comfortable working environment in 2010? Understand some factors to consider if you are planning to buy a home.
May be ready for supply
Over the last few years, the demand for ready-to-move homes has increased significantly. According to the Real Insight Residential Annual Roundup 2020 report by PropTiger.com, the share of ready-to-move properties in total revenue increased from 7% in 2015 to 21% in 2020.
However, experts say the supply of such units may be limited. Samir Jasuja, CEO and Founder of Prop Equity, said:
Ramesh Nair, a real estate expert and former CEO of JLL India, said: It may be affected in the future. “
People’s tastes also changed after covid, as most of them were forced to work from home. This has increased the demand for larger homes.
New sales in FY2009 decreased by about 30% compared to FY2008. Therefore, the overall supply may be affected in the future. This can lead to higher prices in some segments, especially in occupying properties.
Purchase costs may increase
The Maharashtra government has decided not to extend the stamp duty reduction. However, the yen rate or the lady reconnaissance rate has not changed in FY2010. The August 2020 stamp duty cut has greatly supported demand. Jay Goenka, director of the real estate company Dynamix Group, said:
However, homebuyers may no longer be able to take advantage of the reduced stamp duty. Reviving the old stamp duty rate will increase the purchase cost to the pre-offer price. Farshid Cooper, MD of Builder Spenta Corporation, said: “Currently, we hope that the 5% stamp duty revival will not slow down the momentum of buying and launching new projects.”
Increasing stamp duty increases costs.If you were paying ￡Rs 30,000 as stamp duty until March 31 ￡100 million rupees, now need to bombard ￡50,000 rupees.
Prices are unlikely to rise significantly, according to Nair, but developers may not offer the same discounts and giveaways they saw in 2020, especially in ready-to-occupy segments. There is.
Aditya Mishra, Founder and CEO of Amorqa, a fintech real estate platform, agrees: Maharashtra. Such discounts and giveaways may not be available in the future. While in the segment under construction, developers are offering attractive discounts. “
Prices have bottomed out
Mortgage rates have bottomed out and are at their lowest levels in almost 10 years. SBI recently regained its promotional offer and raised the rate to 6.95%. According to experts, interest rates may rise in 2010.
“Currently, it shows that interest rates may not fall any further. The lowest rates are certainly behind us. We’ve seen things like HDFC raise deposit rates, Mortgage rates could rise, “said Madan Sabnavis, Chief Economist at Care Ratings Ltd.
Adhil Shetty, CEO of BankBazaar.com, said: As a result, it puts pressure on the banking sector, which can push up borrowing costs altogether. Therefore, interest rates are likely to rise. “
Should I buy it now?
Interest rates are still at historically low levels and prices have been stable for the past few years, so it’s a good time to buy a home if you plan to live. However, residential real estate may not look attractive to investment, as it may not see significant price increases in the near future. Also, rental yields in the housing sector are fairly low. If you are planning to invest in real estate, you can consider investing in a real estate investment trust (REIT). REITs are listed on the stock exchange and are therefore highly liquid. REITs allow you to invest in commercial real estate with good rental yields.
What are you preparing for homebuyers in 2010?
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