India’s housing market has been faced by subdued homebuyers’ sentiments for the last couple of years. The good news is that the government has taken certain initiatives to boost investor’s interest by focusing on rejuvenating infrastructure and supporting large scale development of affordable housing across the country.
Additionally the RBI has also implemented monetary easing thrice last year and also this year by reducing base rate interest by 75 basis points. The real estate market has picked up in 2016, but there has been no phenomenal rise in prices. The prices have been stable by just a marginal rise in the market rate. This is a good time for the first time buyer to buy a home. By seeing a steady marginal rise the new home buyer can be assured that in future also his property will appreciate.
Another added boon for the new buyer is a deduction of an additional 50,000 on interest for a loan up to 35 lakhs. A home buyer in India is entitled to claim both the interest and principal components of home loan repayment for tax benefits. The buyer has also benefited after the RERA bill was passed and there is expected to be complete transparency in the real estate sector.
Pricing trends in real estate saw a stabilization of prices in the premium and mid-segment housing projects. The perfect time is the best time that can happen to you while investing. At present the property market looks dull, but as it is clear as we look towards the prevailing prices, the market rates haven’t gone down. This means that while most of the buyers’ populace is anticipating a price cut, those looking at end use are buying which is the right time to do so because with negligible price increase or decrease, you have the benefit of stable prices plus quality and enough choices.
Real estate prices have corrected in many parts of the country. As G.Anand of CREDAI said that prices had come down by 15-20% in the last one and a half years and there is no further scope for reduction. Hence the real estate prices have become stable, and this is a good time for new homebuyers to buy property, with the first time buyer getting additional deduction, the RBI lowering the interest rate, more favorable packages being offered by the builders and the Indian economy being at an all-time high. This is the buyer’s market and with the government coming up with schemes for affordable housing, it is the right time to buy.
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