If you have been sitting on the fence about buying a home, it is good time to take the plunge and put your money in real estate.
A number of good things have happened over the last six months in the real estate industry which gives strong reasons to buy homes now. The enforcement of RERA Act 2016 will enhance the buyer sentiment. Due to stagnating property prices too, investors are exiting the housing market, bringing golden opportunity for end users.
A number of factors make this a great time to buy property.
- Increased customer protection: With the enforcement of RERA Act 2016, industry experts say it will increase interests of genuine buyers. Now it is believed that the strict obligations on quality, material and timely delivery coupled with heightened liability for realty developers will put India’s realty market into a new era of quality and buyers satisfaction.
- Bargain hard for discounts (prices are dropping): Rising inventory of unsold flats has led to price correction in Delhi-NCR. According to the latest report by ASSOCHAM, Delhi NCR has the highest number of unsold inventory in real estate with 250,000 units, followed by Mumbai metropolitan region at 98,000 units. The ticket price of 2BHK, 3BHK and 1 BHK flats has seen correction by 35% in Noida and 30% in Gurgaon. This situation may be beneficial for end users and can get their deal closed at an attractive price.
- The market is about to become extravagant: The realty market will be entering a growth period and prices will possibly go up. There are many positive signs that confirm the hope for realty market recovery. With the government’s pushing housing for all by 2022, the market will witness a pickup in sales with an improvement in the number of unsold inventories. So, it’s smart time to buy.
This is what experts say
“Potential home hunters looking for homes should take full benefit of the present scenario and invest in properties as prices are stable at this point of time and interest rates are also less. Not only this, buyers may be able to get good discounts as developers have been trying to woo home buyers in order to pump up their sales,” said Deepak Kapoor, president, CREDAI Western UP.
“RERA will further ease the process of buying properties. There are key features of the bill like maintaining an escrow account by developers, barring developers from making changes in the construction plans etc which are in the interest of customers. The regulator will also bring some consolidation between organised and unorganised players in the market. As far as home values are concerned, yes they would definitely start going up in near future not just because rental values are shooting up but also because the last couple of years have laid solid foundation for the times to come in terms of growth and development for realty sector,” he said.
“Various policies and amendments have been announced in past few years as a consistent dose to the sector which has witnessed slowdown in past few years and is now undergoing recovery phase steadily. Interest rates have been slashed, property prices are stable, loan portfolios have increased, focus on affordable housing are some factors which signals that this is the perfect time to invest in properties,” says Gaurav Gupta, General Secretary, CREDAI RNE.