Buying a Dream Home This Festive Season: Opportunities and Experts' Insights

Strategic Insights -

As Indians consider this festive season a revered time to invest in their future, the real estate market presents a unique opportunity for cautious buyers to make informed decisions. With prices stagnating or dropping in various markets over the past five to six years, interest rates at an all-time low, and attractive schemes being offered by builders, the stage is set for homebuyers to strike bargains.

Key Takeaways:

  • Real estate has provided a healthy return to investors over the years, with a combination of rental yield and capital appreciation.
  • Prime properties are now cheaper than they were in the last year due to demand-supply dynamics, making it an attractive time to buy.
  • Interest rates have fallen to decade lows, and with the cost of owning a home being highly affordable, it is wise to take a loan for self-use during this crisis.
  • Real estate has proven to be more resilient and less volatile compared to public equities, offering a strong hedge against returns from equities in times of crisis.
  • Experts believe that having one's own home provides safety, security, and investment benefits, making it an attractive long-term asset for Indians.
  • The festive season is a time when discounts and innovative schemes help to attract potential property buyers, driving growth in sales.

Statistics:

  • Interest rates have dropped to sub-seven percent levels, making real estate buying attractive.
  • A three percent rental yield and a basic five percent price increase make real estate a profitable investment.
  • Over the past five to six years, prices have stagnated or dropped in various real estate markets.
  • Real estate has proven to be more resilient and less volatile compared to public equities over the last few months.

Sources:

  • Sharad Mittal, CEO of a capital market company
  • Ravindra Sudhalkar, CEO of a finance service company
  • Girish Shah, Executive Director, Residential Sales at a real estate agency
  • Nimish Gupta, Managing Director of a realty association