Affordability has considerably gone up in comparison to the pre-pandemic levels observed in 2019, as per reports. According to reports, the proportion of the monthly income required to fund the housing monthly loan EMI has improved in almost all leading cities. For example, this was at 93% in 2010 for Mumbai and 52% in 2021. It has now come down to 51% in 2023. In the same way, Delhi-NCR has seen the figures come down from 53% in 2010 to 28% and 27% in 2021 and 2023 respectively.
There is now higher demand for bigger homes after the pandemic, with 38% of home sales concentrated in the segment between Rs. 50 lakh and Rs. 1 crore. Rising incomes have also led to larger home loans. With the rises in input costs, developers are now attempting to keep price rises at moderate levels according to industry experts. This is a reason why offers and freebies to incentivize buyers are not as frequently observed in the current scenario.
According to the Principal Partner & Sales Director, Square Yards, Deepanshu Chhabra, going by the present interest of investors and demand dynamics, projects, particularly from branded real estate developers have an advantage, since they are being sold at a premium. Even though it is no longer a buyers’ market with supply being swiftly absorbed, there is still room for smart negotiations according to industry experts. Chhabra also states that buyers should compare similar properties in the same area and do an analysis of property prices to strengthen their negotiating positions.
The near-completion and resale categories of homes are also witnessing a boom. Yet, preference among buyers for resale units has led to a major spike in pricing. Chhabra states that there has been a dynamic shift in recent times owing to the preference for immediate occupancy and limited ready-to-move (RTM) supply after the pandemic. Hence, he feels that resale units in projects with good maintenance and amenities are now witnessing prices which are almost close to new ones, especially in prime locations. For those considering resale properties, there should be a thorough evaluation done of the property conditions and age to leverage these factors in negotiations.
It is always an opportune moment to purchase real estate, especially since the market is still inclined towards buyers with increasing affordability and relatively modest appreciation in prices. Chhabra feels that the buying decision ultimately depends on credit capacity, financial readiness and housing requirements.
For a detailed report on this read the articles we were featured in:
Economictimes Indiatimes – https://bit.ly/3yXg1AW
Published Date: 10 June, 2024
