Demand for houses has increased

Telangana Builders’ Association President Prabhakar Rao said that the demand for houses has increased following recovery of the real estate sector in post-Covid situation and the demand for properties from all income groups is on the rise. Talking to Real Estate Guru in connection with Diwali on Thursday, he said that the demand for buying properties from high income groups is on the rise. This is in spite of the fact that incomes of middle and lower income groups are on the rise gradually over the past one year.

There is demand for property in all segments. During 2017-2020, the demand for properties was less compared to the demand from middle and lower income groups. However, there was a sea change in the market demand since last year. In fact, the demand for properties from higher income group individuals is very high. There is good development in the property market of Hyderabad, Mumbai, Delhi, Pune and Chennai. The average loan availed by property buyers last year was Rs 27 lakh. Now it has increased to Rs 32 lakh.

In a decade, now is the time to buy property due to low rates of interest on housing loans. The other important reason is the increase in purchasing power of the buyers. The income of the people has increased from 7.5 per cent to 8.5 per cent during 2017 to 2021. During the Covid period, their income has improved. Moreover, compared to the prices of properties in 2017, the prevailing prices of properties did not appreciate much. At the same time, the income of an individual has increased from 30 to 32 per cent. But the property prices remained constant more or less. He attributed it as the reason for the surge in demand for properties in the country. Because of Covid, many families waited to buy large homes.

If there would be no third wave of the Covid-19, the real estate situation would limp back to normalcy. The businessmen who faced problems in the first and second waves of the pandemic have been recovering. During the next three years, the economy of the country and business transactions would become normal, improving their purchasing power. He predicted restoration of normalcy in the real estate sector very soon.