Realty market may turn the corner in Q4FY22
The pandemic has highlighted the deep cost of procrastination, and many aspiring homeowners now wish they had made a decision earlier. Most Indians don’t need much convincing to buy a home.
The pandemic has highlighted the deep cost of procrastination, and many aspiring homeowners now wish they had made a decision earlier. Most Indians don't need much convincing to buy a home. The desire for homeowner ship is hard-wired into the Indian psyche and is also the basis of most families' financial planning. For such people, who represent a clear majority, the question is not if to buy a house, but when. So - why now, instead of later?
It is true that end-users shouldn't try to 'time' the real estate market, but it is quite evident that property prices are at their lowest best. There have been no changes in pricing on the primary (purchased new from developers) market for over a year. Even the pandemic hasn't caused them to reduce significantly as anticipated. Buying now equals buying at the lowest possible price.
There are a lot of options on the market, even in ready-to-move properties. Moreover, prices of RTM properties are almost at par with under-construction homes in many areas. This has never happened before - and since developers have curtailed new supply, it is unlikely to happen again. Never have homebuyers had such a tempting choice range, at such low prices.
Developers have pulled out all the stops to attract buyers. Extremely lucrative offers have been rolled out for the festive season, many of which result in an actual reduction in the cost of acquisition. These offers come with an expiry date - when the housing market regains enough momentum, they will be withdrawn.
Home loan interest rates are at a 15-year low. Coupled with the bottomed-out property prices and additional discounts and offers by developers, there are very real savings to be secured on life's most cost-intensive investment.
Far from being a temporary phenomenon, the Covid-19-induced work from home culture has become a mainstay for many companies who have discovered that employees can be as productive from home - if not more so - than in offices. Buying a home now, while the cost of acquisition is so low, allows buyers to secure larger homes into which home offices can be incorporated.
( The author is vice-chairman, Anarock Property Consultants)