Home buying is something that should be done carefully and with a lot of thought behind the same. While sales volumes for the best real estate deals came down immediately after the impact of COVID-19, as per data released by multiple real estate reports, sales of residential units have already started their march towards steady recovery. In the third quarter of this year, average housing unit sales figures have increased by 10% throughout major cities as compared to the second quarter of 2020.
Delhi NCR real estate sales and other countrywide trends
The Delhi NCR real estate market has been highly resilient in light of the changing situation. Mumbai real estate and Pune property markets have also rebounded positively in terms of sales volumes along with the Hyderabad real estate and Bengaluru real estate markets as per the Founder and COO at Square Yards, Kanika Gupta Shori. The Mumbai Metropolitan Region (MMR) was one of the best places to find real estate deals owing to a pick-up in demand after the cut of 2-3 percentage points in stamp duty and enticing discounts for buyers offered by real estate developers.
India real estate prices have remained largely stable and this also helped in reviving overall demand. Lower home loan interest rates are another factor propelling overall demand as per experts. Residential real estate sales figures have improved considerably since the month of August, touching almost pre-COVID levels in the month of September, majorly for Pune and the MMR (Mumbai Metropolitan Region). The festive season should also witness a pick-up in overall demand.
Top real estate deals and other emerging trends
Developers are offering discounts to attract buyers while some are searching for how to find real estate deals off-market. Leading online property platforms are offering real estate deal finders with attractive discounts while people are also looking to cash in on distress property deals in Gurgaon and other major metropolises after the impact of COVID-19. People are looking to own a home even more after the pandemic as a measure of future stability and for hedging against uncertainty in the future. However, you should not simply rush into scouring real estate deals near me at this time or rush to buy luxury apartments if you have the moolah.
Remember that a good deal or discount should not be all it takes to get you on-board with a new project or apartment. Buyers are also being encouraged by a general perception of a drop in real estate prices owing to muted sales throughout the COVID-19 pandemic. However, this drop is temporary and fuelled majorly by discounts and reductions offered by developers. The overall property acquisition cost may come down by 10-12% for buyers at present. Average home prices have come down by approximately 4-5% for the quarter between July-September, 2020 for Mumbai, Delhi-NCR, Pune, Chennai, Ahmedabad and Kolkata due to the pandemic although they have gone up by 3-4% in the same period for Hyderabad and Bangalore.
You should keep your own affordability strongly in mind without getting lured by festive discounts and surpassing your budget. There is a considerable gap between the rentals paid for a property and the EMIs for the same. This does not account for other costs linked to real estate ownership. So do the math before rushing into any decision. Account for other financial goals and investments since you should always assess the impact of a big financial commitment like home ownership on other goals later in life. The EMI should be lower than 30% of net take home income is possible. Carefully assess the location before buying including distance from economic hubs or activity centres, access to proper social infrastructure and future growth prospects.
Published Date: 20 October 2020
