The dream of homeownership resonates deeply in the Indian psyche. It signifies stability, security, and a tangible expression of personal progress. In the realm of Indian real estate, the present time emerges as the right moment for prospective property buyers, both for end-consumption and investment purposes. The rising property prices, anticipated to ascend further in the future, underscores the urgency of seizing the current market dynamics. With projections indicating an upward trend in property values, acting now ensures advantageous move, safeguarding against more future inflation.
A compelling tool of investment
Time and again, the real estate sector has stood the test of time and is the most bankable and trustworthy investment avenue, as compared to the other more volatile investment options. The rental yield in India has witnessed a steady upward trajectory over time. 2023 has been a landmark year for rental surge. Average rent across cities has increased by 17%. But in areas around IT parks and commercial complexes, it has increased by over 30-40% as well, making real estate a favourable investment option.
This rise is likely to continue, fueled by opening of offices which have led to an influx of more people for work. This increased demand has outpaced the supply of properties, pushing up the rents. Rental income can potentially offset mortgage payments, making investment-driven purchases even more enticing.
Homeownership as an inflation hedge in a dynamic market
In addition to the potential for long-term value appreciation and strong rental yields, homeownership offers a crucial advantage in uncertain economic times: it acts as a powerful hedge against inflation. With inflation hovering around 5-6%, owning a home offers a valuable shield. Your monthly mortgage payment remains fixed, while the value of your property grows faster than inflation, protecting your wealth and ensuring its real value doesn’t diminish over time. This provides peace of mind and financial security, especially for individuals planning for retirement or long-term investments.
Buying now, even with a slightly higher initial investment, secures a valuable asset at a potentially lower entry point compared to future costs. With various home loan options and government initiatives catering to first-time buyers, homeownership is more accessible than ever.
Co-founder & Chief Business Officer
NoBroker.com.
Incentives, Rates, and Regulations Supporting Homeownership
Beyond the compelling potential for long-term investment and inflation protection, various key factors within the current Indian market paint a particularly encouraging picture for potential homebuyers.
Firstly, supportive government policies actively incentivize ownership. Schemes like the Pradhan Mantri Awas Yojana (PMAY) offer attractive interest rate subsidies and tax benefits, particularly tailored towards first-time buyers and individuals from economically weaker sections. Additionally, state-level initiatives offering stamp duty reductions and subsidies further enhance affordability.
Secondly, recent reductions in lending rates by the RBI translate to lower monthly mortgage payments, making homeownership more accessible and financially feasible. Moreover, it is expected that the lending rates will keep going down from the current levels.
Thirdly, the establishment of the Real Estate Regulatory Authority (RERA) has significantly bolstered market stability and buyer protection. RERA enforces strict regulations on developers, ensuring timely project completion, fair pricing, and adherence to construction standards. This increased transparency and accountability minimise risks and instil confidence in buyers, making homeownership a more secure proposition.
While affordability concerns remain valid, particularly in major cities, it’s crucial to consider the long-term perspective. Experts predict further price hikes in the future, and buying now allows you to potentially lock into a lower entry point compared to future costs.
Conclusion
While uncertainties linger, the Indian real estate market presents a unique confluence of opportunities for aspiring homeowners. Capitalise on the long-term potential of appreciating property values and inflation protection. Seize lowering-interest rates, government incentives, and enhanced market transparency through RERA.
Even if affordability seems like a hurdle, explore diverse options and remember, buying now secures a potentially lower entry point compared to future costs. Also, you can get under-construction properties with staggered payments rather than making the entire payment now. With expert guidance and strategic planning, navigate the market confidently and unlock the doors to your dream – owning your piece of the future. Remember, the potential rewards far outweigh the initial challenges. So, take the first step today and embark on your enriching journey to homeownership.
