Why Is Now a Good Time to Invest in Residential Real Estate?

Kishan Thakkar K

“Be fearful when others are greedy and greedy when others are fearful.”

Warren Buffet

When we hear the investment, we Indians have two popular options, Real Estate and Gold. Both are considered as a favorite among the populace. Both give higher returns in the long run.

The pandemic has made a negative impact on the real estate market in the first and second quarters. Many companies encourage remote work, the demand for housing has risen.

According to NITI Aayog , the sector will reach $650 billion by 2040, up from its current figure of $120 billion. The supply of homes is higher than the demand at present. Additionally, the initiatives from the government are encouraging a variety of development programs to address the urban housing shortage.

Reserve Bank of India’s Housing Price Index Track shows a yearly increase of 11.6% in housing returns from the past 10 years, which is more return on investment than the equity market or gold.

With the introduction of the vaccines and the revelation in lockdowns, the workforce is expected to be coming back to the city. With the introduction of SEZ in cities like Chennai, Bangalore, etc, the demand for housing will rise, either for renting or purchase.

Top Reasons to Invest in Residential Real Estate

Prices Are All-time Low

The developers are offering affordable costs and attractive discounts along with a variety of payment options. The pandemic has been one of the main economic turning events. The government’s measures on loan rates, stamp duty, credit-linked subsidy schemes, tax holidays for developers of affordable housing projects, and so on have made the real estate sector very affordable.

Low ticket prices and better financing terms have kept the residential real estate market in good shape.

Government Initiatives

Unlike in the past, the government has been proactive in announcing packages. They have implemented several policy measures targeted at increasing investment activity in the real estate sector as well as other industries.

The finance minister has announced that the deadline for claiming the advantages of the purchase of affordable housing has been extended until March 31, 2022. The Rs 1.5 lakh deduction benefit will now be accessible before March 31, 2022.

The government’s Housing for All initiative, known as the PMAY (Pradhan Mantri Aawas Yojana)[KT6] , would revitalize the residential real estate sector.[KT7] 

Mortgages Are Low

The Reserve Bank of India (RBI) has recently decreased the repo rate, resulting in house loan interest rates falling below 7%. Investors should take advantage of the record-low mortgage rates by putting down the necessary margin money.

A year ago, the home loan interest rate was at the 8-9 percent level; a Rs 25 lakh loan for 20 years at 9 percent would imply EMIs of Rs 22493. However, you could now secure the same loan for 6.5 percent, which would reduce your EMI by Rs. 18639, resulting in savings of nearly Rs 9,24,920 in total interest payable.

Offers From the Developers

Home loan interest rates have historically been low, and this, combined with the affordable rate and other discounts and advantages provided by the developer, has resulted in historically low prices. The developers are making a variety of offers and discounts to buyers, which, when combined with the government, results in a significant reduction in overall acquisition costs.

You must have heard the term ’10:90′ plan multiple times if you are buying a new property.

In a simple explanation, on the 10:90 plan, you have to pay only 10% amount of the total cost of the property at the time of the booking and pay 90% of the amount at the time of possessions. This is the ideal plan for real investment in India.

There are other options on the market. The fact that investors have such an attractive array of options at such low prices is unlikely to occur again.

If this is your first investment, make a list of any unexpected expenses that you may have forgotten to account for. Click here to read the article Buying Your First Home – Some Unexpected Expenses You Might Forget About

Buyers may have a misperception about purchasing a property. Click here to read about the common misunderstandings that home buyers have.

On a Final Note

We have discussed a few reasons for investing in residential properties now. The residential real estate sector is currently a buyer’s market. It is without question the right time to invest in residential property and we advise the prospective buyers to invest in such assets. However, investors are also advised to do homework on the developer and study their finances carefully while making the investments.

Staying informed and discussing with experienced & experts while making a decision is an ideal way of making a great deal. All you have to do is contact RoodLand, which provides the best real estate services. For any queries and suggestions, contact us at info@roodland.com and discuss all of your options with us!

RoodLand is a business solution and advisory organization for the Real Estate sector. It is founded by young professionals with experience in management, marketing, finance, and digital technologies. With their innovative marketing concepts and out-of-the-box methods, RoodLand has successfully delivered amazing results across the region.

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Thank you for reading! 🙂


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