NEW DELHI: If sliding real estate prices weren’t compelling enough a reason to purchase your dream home last year, market analysts have placed their bet on residential real estate as a top asset class for this year too. Almost decade-low real estate prices coupled with low interest rates, analysts note, are ideal for anyone looking to purchase a home.
The real estate market was among the worst hit during the pandemic, and the fiscal measures announced by the government aimed at increasing demand for affordable housing and other measures such as the stamp duty waivers now being offered by top developers are poised to benefit buyers in the affordable housing segment (priced up to Rs 45 lakh).
Another reason for the declining prices in the housing segment, according to a recent from PropTiger report, is the unsold inventory from last year, which is pushing realtors to first selling existing stock.
“I was actually surprised to find so many options for ready-to-move apartments this year compared to last year. There are multiple choices in the market right now. We know that investing in an unfinished project is risky considering market uncertainty and delays on the part of builders. Ready-to-move properties are far better that way,” said Priya Jain, a software engineer working in Bengaluru.
In many markets, negotiations with agents or builders may even lead to discounts to the tune of 10-15 per cent, but some warn that buyers should be cautious about later price adjustments made in stamp duty and other taxes. A 3-5 per cent commision taken by agents earlier is also reduced currently, market sources say. Additionally, builders have also leveraged digital platforms to directly connect with potential buyers and provide a real-time house-hunting experience without stepping out during the pandemic.
Financial planners, however, say that before deciding to go for your final house purchase, one should consider the budget required in the long term if there is a mortgage involved. It is always advisable to reduce your reliance on a home loan for your purchase and put down as large a down payment as affordable, they add.
“Although a 20 per cent down-payment is ideal, many first-time home-buyers may find that a difficult task. In such cases, one should try to pay at least 5-10 per cent of the total purchase at the earliest and the rest can be availed in the form of a loan,” said Sudheer Singh, a real estate consultant. Home buyers should also keep an eye on other factors, such as the credibility of the builder, required certifications from RERA, verification of documents required, and personal preferences before finalising a home purchase.