Buying the house of your dreams always proves to be among the toughest of decisions. People want to own a home for various reasons, with an important one being homeownership pride. But, is this the right time?
As the clock struck 12 on December 31st, the world bade goodbye to an extremely tumultuous year and readily ushered in a new beginning. In this context, taking the plunge and buying your dream home might be the fresh start that you are looking for. As news of volatile markets floods the media, most people are left with the impression that buying a house should be the last item on one’s agenda. However, a closer look indicates that 2021 might present an opportune moment to invest in a new home.
Low interest rates
With the stock market being volatile and the mutual funds underperforming, people have longed for a stable asset class that could give better returns in the mid to long run. In this context, is there a better option than a home? Easy liquidity by global central banks promise to keep interest rates low, and funds too will chase high yield investments. Easy home loan availability has further made a home among the best investment options in the present context. With the lower interest rates and the current period being a buyer’s market, there is no shortage of reasons for capitalising the benefits of the current time to buy one’s dream home.
The demand for housing has returned to pre-COVID levels, and despite the pandemic, the real estate market is at a good peak. With the long-awaited vaccine rolling out, the end of the pandemic is in sight, and there are grounds to hope for a return to normalcy soon. India is one of the fastest-growing economies, and government plans for mass vaccination set the seat on economic recovery within one of two quarters. As a result of these improved growth prospects, real estate pricing is predicted to remain stable, thereby contributing to an increasingly positive buyer’s sentiment across the country.
Time for good deals
While the pandemic has been associated with gloom and despair, times like these also bring good deals. Developers today often offer discounts up to 7%, and deals are further sweetened through complimentary car parking or easy payment plans. Moreover, good deals can be secured and negotiated in the primary market. According to a report, large volume markets like Bengaluru, Mumbai and Pune have seen year-on-year revisions of 1%, 3% and 5% respectively. The cumulative result of all these factors - real estate prices at the most attractive they have been in a long time!
New demands of work-from-home
While 2021 has served to be a much-needed fresh beginning, several characteristic features of 2020 appear to be here to stay, with work-from-home being one of them. Adapting to this new normal necessitates a range of changes, and a new home might be one of them. As the separation between home and work has become obsolete, people realise the dire need to own a home conducive to their work needs. In this context, the need of the hour is bigger homes, especially for families with children attending online classes and adults working from home.
In recent months, surveys by property consultants have indicated that housing inquiries have
bounced back to about 50 per cent of pre-COVID-19 levels in the big cities. From favorable
prices to an increasing need for bigger homes, there is no shortage of reasons.