Many home buyers are wondering what’s next in the property market and how will it will affect the pricing. Read on to know how you can take a calculated homebuying decision
The big hike is yet to come
Industry insiders say that a major price hike is expected soon, and buying a home as soon as possible is the only way to benefit from pandemic-induced consolidated property prices. Atul Monga, founder, BASIC Home Loan, a fintech start-up, says, “Interest rates are at their lowest in India since 2020, but a hike is expected in the near future, probably around the beginning of the next financial year. So, now is the opportunity for home-buyers to get their home loans at the cheapest possible rates. Also, the cost of living has been going up in the past decade, and it is expected that this trend will continue. Therefore, buying a home at the earliest with low-interest rates could be a wise investment and a good bargain.”
According to Knight Frank India, property prices have already begun hiking by about 3 to 5 percent from Q4 2021. Potential homebuyers fear that the upcoming hike would put their dream homes way out of their budget. However, developers have maintained that the hike would be gradual and will take a few years for full impact.
Mohit Malhotra, managing director of a real estate company, says, “The price rise would not be so aggressive that it would derail the market. At the end of the day, the end consumer will need to buy a home, and most developers have kept this as their priority while deciding price hikes.”
Prop-Tech driven prices
All new-age progress in property-tech has led many to believe that this will help developers drive down costs by managing rising construction costs, which is currently 18 percent higher than two years ago. This advantage will be passed on to the buyer and will eventually lead to improved project deliveries.
Mark Taylor from Mace India, a prop-tech firm, says, “The use of technology has been picking up pace; Covid-19 has helped India and other countries in Asia to scale up the use of technology in construction. In the future, the use of technology in logistics through 24-hour and 360-degree monitoring of a project will be completely driven by tech. Technology empowers developers with detailed analysis, thereby helping them avoid costly construction errors. This will enable faster project delivery and reduce the need for manpower, thereby driving down construction costs.”Attachments area