During unpredictable and tumultuous times, the one place that offers support and safety is ‘home’. With job losses and economic disruption, paying home rents suddenly becomes a financial burden. Home loan borrowers had an option to take benefit of the EMI halt, making it advantageous over rental payouts. Not only during the Covid pandemic, but real estate is considered as a stable asset class and a preferred investment option especially in a volatile market scenario. Therefore, there is a sudden rise in demand for property for sale in Panchkula.
Just like any other investment, what operates real growth are strong fundamentals, and real estate is no exception. Niti Aayog shows a shortage of nearly 25 million houses, which indicates the vast underlying demand. Also, increasing urbanization, growing incomes, and large middle-class households – all contribute significantly to drive demand in the sector.
Niti Aayog predicts the Indian real estate sector to reach $650 billion by 2040 from the current levels of $120 billion. Being a long-term investment option, any cyclical downturn does not impact the investment compared to other investments.
Reduced Real Estate Prices: Golden Opportunity
The one investment philosophy every advisor swears to buy is “buy low, sell high”. With realty prices falling, real estate today offers a smart investment option. Being a buyer’s market, not only are the prices low but there are enormous discounts on offer as builders look to sell unsold inventory. Also, RBI’s reduction of repo rate brought home loan interest rates down, the extension of benefits under Section 80EEA till March 2021, and the reduction in stamp duty rates by various states.
Just like every investment asset class, real estate comes with its pros and cons. The biggest factor in real estate investments is the need for proper due diligence, as not all properties in all locations may offer similar returns. For example, as per RBI’s India House Price Index from June 2010 to June 2020, property in Indore offered returns of 16.1% per annum compared to only 6.1% for Jaipur.
Apart from location and the city, opting for ready-to-move-in properties is by and large a safer bet than under-construction properties or land acquisition. Price drops have made ready-to-move-in projects in Panchkula budget-friendly with facilities like complimentary car parking space, pre-EMI payments by builders, etc. Also, do not let the discount be the sole criteria-reputation and track record of builders should remain one of the fundamental criteria when investing in real estate.
Real estate can be a great tangible investment option, especially in the long term. The current price dip, low-interest rates, and stamp duty cut all make it a viable option albeit with some strong fundamental research required before purchasing. Now is the right time to make the right move and buy property for sale in Ujjain.