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When Is the Right Time to Invest in Real Estate?

Real Estate

The global coronavirus outbreak is no longer a top concern. People are starting to shift their focus to the top choices now. In particular, the real estate sector and residential real estate have boomed in the previous two years due to pent-up demand, historically low-interest rates, and innovative and flexible financing options from banks and HFCs.
The demand from NRIs living abroad has been hampered by the dropping value of the rupee since 2018. Real estate has surpassed gold, equities, mutual funds, savings accounts, and bonds as the safest choice in light of the current economic climate and market volatility.
About 7–8 per cent of India’s GDP growth is attributable to the real estate industry, making it the country’s second-largest employer after agriculture.

Some facts about it

1. Along with RERA and GST, tax exemptions for potential buyers and their push to boost the Indian real estate sector over the last two years are expected to increase transparency and homebuyer confidence.

2. The Indian real estate industry is unaffected by external disruptors like currency changes and stock market upheavals, it is a stable investment for the typical Indian. The Indian real estate market is incredibly liquid and provides investors with a continuous source of income and the opportunity to diversify their portfolios, protecting them from economic volatility.

3. It’s plain to see that Indians of all socioeconomic backgrounds are optimistic about the future value of their homes. This is contributing to rising property values in India’s largest cities, which in turn is increasing the demand for housing.

4. Rental income is also a fantastic source of passive income and a terrific method to enhance one’s current income. As a result, potential investors can be assured that prices across India’s real estate market will remain stable and predictable.

The Right Time to Buy Real Estate

Values of homes in India’s nine most populated cities (Mumbai, Delhi, Bengaluru, Kolkata, Hyderabad, Chennai, Surat, Pune, and Ahmedabad) have risen by double digits over the past few years. Increasing numbers of would-be homeowners attribute this shift in perspective to the unpredictability of the pandemic.

However, this has also resulted in a dramatic rise in construction prices, which have risen by as much as 12% in the National Capital Area. This will negatively affect the Developer’s future ability to sell the product at the current pricing.

Consistent demand in India’s main cities has prompted builders to include all the latest conveniences and designs with eco-friendly features. All of this is done with a deliberate focus on satisfying the tastes of the next generation of homeowners. Property values are expected to rise steadily over the next few years, based on an extrapolation of current market trends. Ultimately, this will have a multiplicative impact on buyer confidence and become the future lynchpin for homebuyers.

Government incentives: The real estate market in India is the lifeblood of the country’s economy. Putting money into the real estate market has a direct impact on GDP. Recognising this, the government has developed several initiatives to promote affordable housing and make homebuying easier, such as the Pradhan Mantri Awas Yojana and the Credit Linked Subsidy Scheme.
A plethora of tax breaks has partially mitigated the expense of investing in various asset classes, reductions on stamp duty, and exemptions on the sale of a property. These programmes help millennials get a foot in the housing market by providing them with financial aid to purchase a home.

Interest rate increase: Buying property in India has typically yielded positive returns. After structural improvements in the years before the pandemic, the residential real estate market has had a strong run. The central bank has tightened the repo rate to combat the inflation that refuses to go away.

A higher interest rate and higher property construction costs have harmed product pricing. The approaching quarters’ lower interest rate swing will boost real estate market demand, making it hard for buyers to enter. Therefore, until the market dynamics alter, now is the time to take advantage of the competitive interest rates offered by Banks /HFCs this year.

Plenty of inventory: All major cities provide various high-calibre construction options from multiple developers. There is strong demand for ready-to-move and under-construction properties ranging from 2.5, 3.5, and 4.5 BHK flats across different price categories. Apartment buildings, high-rise independent floor condominiums, ultra-luxury townhouses and multi-purpose planned housing projects are all included in this broad category.


The real estate market showed remarkable resiliency in the wake of the epidemic. Consider the historic expansion of the residential and retail real estate markets as a prime illustration. Investors and purchasers now have more faith in the real estate market, as sales of properties in all price ranges and all nine of India’s largest cities are up by 40 per cent. Demand for real estate from domestic and foreign buyers has increased to levels not seen before the outbreak.
Because of this demand growth, home prices are predicted to increase dramatically in 2023 compared to the previous year. Property prices will rise next year due to inflation, economic uncertainty, and the unpredictability of input costs and global supply chains.

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