- Rising prices causing concern among buyers
- Experts say buying a home isn’t difficult if you think wisely
Across the country, property prices are rising. With low inventory, real estate rates are touching the skies. In such times, many are unsure about how to buy the right property in the right location. The question of whether owning a home will ever be a reality lingers. However, experts believe that just because home prices aren’t dropping doesn’t mean one can’t buy a house. They suggest thinking wisely and making the right decisions. Here are their tips…
Prices have risen, right? Waiting for them to drop doesn’t work in the real estate sector. The idea of prices decreasing is simply not relevant here. When credible developers launch new projects, the flats in those projects are bound to sell like hotcakes. Moreover, the inventory in the market is relatively normal. According to the real estate data platform Prop Equity, unsold inventory is not a major concern. Even in Gurgaon, where real estate prices have doubled in the past two years, the supply remains relatively low. From 2019 onward, prices in Delhi have increased by 212%.
Inventory has dropped from 26 months to 11 months. In Mumbai, India’s most expensive market, prices have risen by 28% over the same period, with unsold inventory now standing at 14 months. In Bengaluru, prices have increased by 67%, and inventory has dropped to 13 months. While Hyderabad has had the highest unsold stock in the past 20 months, prices have remained stable. Land prices are not decreasing anywhere. However, developers are not slowing down. Yet, it is expected that sales of ultra-luxury homes (priced above Rs 5 crore) may decline in the future.
As land prices and construction costs rise, house prices automatically increase as well. While this may be a cause of concern for the average middle-class buyer who wishes to purchase a new home, fulfilling the dream of owning a house is not impossible. Considering the current market conditions, builders are coming up with convenient payment plans to make home buying easier for potential buyers. Some developers are offering plans like the 20:30:50 model, which is making the purchase more accessible. Even if developers don’t reduce prices, the availability of convenient payment plans is a positive aspect for those looking to buy a new home.
On the other hand, the resale market has become a powerful tool for many. While developers may not lower prices, investors might be more inclined to do so. In key markets of major cities, wealthy individuals often buy and sell homes. Identifying such properties can provide an opportunity to own a home at a slightly lower price.
In some projects, resale prices are already lower than the current builder rates. If you bring this up during negotiations with the developer, there might be some room for a price reduction. Setting the price aside, there is one crucial thing to do before purchasing a home – thoroughly checking all the documents. Visit the RERA website and review all the documents submitted by the developer. You should also check the project’s timeline. How much time is left for the project to be completed? Can you manage paying both rent and EMI until the completion? Some developers offer to cover EMI payments for a few months. It’s worth looking into if such offers exist.
Recently, the RBI gave a positive update for home buyers by reducing the repo rate by 25 basis points, which will ease the burden of home loan interest rates. In this scenario, fulfilling the dream of owning a house isn’t as difficult as it seems. Experts suggest that with careful thought, thorough examination, and wise decision-making, one can make an informed choice and turn the dream of owning a home into reality.
