Does festive season 2021 ring a bell for home-buying?

Home-buying in India has transformed from simple shelter hunting to seeking a way of lifestyle that promotes well-being; and isn’t well-being what is paramount in a pandemic struck world? The homebuyers are inclined on choosing sustainable developments over four-walled single unit in some group residential society. 

What is more interesting to observe is the democratizing of information by the Internet!

This has armed the homebuyers with an array of experiential information available right at the click of their fingers, and more so it is helping them make smarter decisions. This generation of homebuyers are fearless when it comes to making decisions like home buying, gone are the days when it is kept as a plan for late 40s. The new-age buyers are ready to take on the financial barrage of this meaningful life-changing decision in their 30s. It is majorly due to the fact that pandemic has helped them save a lot, and realize the value of long-term assets like property investment. 

• Discounts/offers are in full swing

Adding on to it, the developers are coming forward and competing with other playerrs in the market for introducing unseen offers that pushes end-users for taking out a big chunk of their savings. The buyer must analyse the flexibility for a lump sum principal payment which is required to be paid as a booking amount/down payment in some case, then comes the ratio of EMI to monthly income, and thereafter the amount of savings play a major role as a buffer to offset any future risks on employment.

• Festive season exudes positivity 

According to the JLL’s Homebuyer Preference Survey 2021, more than 80% of the prospective homebuyers surveyed are likely to make a purchase within the next three months. Further, nearly 80% of the prospective homebuyers indicated a preference for properties in the sub-INR-75 lakh category. The prospective buyers are seen placing greater emphasis on the layout of apartments, presence of balconies and an additional small room for work/online classes. This sentiment to seek more exudes positivity in the festive times when economy is on a path to recovery, common perception to make new beginnings during festivals is considered auspicious and buyers are looking to put a good use to their savings.

• Home Loans and tax saving

Delhi NCR being one of the most expensive real estate market in India, is burgeoning currently with opportunities. Recently as per the Knight Frank global report, it has also been declared one of the greenest real estate markets in India. The commercial real estate avenues in India have also evinced strong global investor interest in segments led by office and warehouse.

Home loan interest rates are at their record low in past 15 years, adding more to it SBI the largest lending bank of nation is currently offering credit score linked home loans at just 6.70%, irrespective of the loan amount. To boost the market sentiments, the bank has also waived off the complete processing fees and is open to offering attractive interest concessions based on the credit score of the borrower. Following the similar pursuit private banks have also significantly reduced the interest rates, and are actively and smartly pushing the millennial customers to take the big step.

• Hike in Raw material prices may reverse opportune time

This entire phase of positivity may soon be heading towards the dark side full of trials and tribulations, if raw material price hike is not contained. Steel and cement prices have started witnessing an uptick post the second wave of pandemic, along with insulation and piping materials. With the possible coal crunch that our country is staring at, the power supply will be disrupted and supply chain would also enter a challenging phase as predicted by the experts. This will directly translate its effects on the real estate sector, as raw material, labour cost, procurement and supply chain charges will simultaneously rise putting the heavy capital charges on developers. As of for now, the way millennials are approaching and treating the home buying process in an entirely new, modern way, the fact could also not be denied that this process can have implications across the economy in the future.