I was delighted, though not surprised, to read a report the other day that mentioned a huge rise in #property sales in the first 20 days of September. The study noted that during this period, the number of sale documents registered stood at 2,717, as compared to 2,642 in the 31 days of August. This, despite the fact it was Pitru Paksha between September 2 and September 17 – a time when many people pay homage to their ancestors and traditionally refrain from buying property.
As the festive season progresses, towards Dassera, Diwali, and then Christmas, I expect more people to be buying homes, ushering in a market revival that is long overdue. The pandemic may have halted property buying for a while, but the latent demand is bound to bubble over. At Supreme Universal, certainly, we have seen no drop in demand; in fact, inquiries have doubled across all our projects.
Now, more than ever, people have recognised the safety and security of owning properties rather than renting them. And this festive season is genuinely the best time to buy – not just because you will want to to move in during the auspicious time of Dassera, but also because there are good deals in the market; plus supply, especially of Grade A properties, will shrivel up in the near future, with so few launches taking place. #Homebuying is one of the most important purchases for most individuals, and this is a rare occasion when you can take advantage of the opportunities available to get the best deal.
Let’s look at some of the reasons that smart investors have recognised when it comes to buying a home:
Low Property Prices: Real estate prices today are at their lowest, similar to what they were six years ago. “Major property markets in India have seen only a marginal price increase since 2015,” a Proptiger report in March 2020 said. While it attributed this to low consumer sentiment, wise homebuyers have always known that when the market is down, that is the time to get the best deals. As the legendary investor Warren Buffet once remarked:
Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down’. Certainly, this holds good for #realestate too.
Reduced home loan rates: Thanks to repo rate cuts by the Reserve Bank of India, home loan interest rates are at their lowest ever, in the region of 7%, and in the case of some banks, even less. In January this year, I remember reading a Financial Express report that said that for the first time in over 15 years, home loan rates had fallen below 8%; the last time they had fallen to that extent was in 2003-04! Women borrowers can also take advantage of special discounted schemes if they are the primary applicant or co-applicant.
Properties of your choice: Make no mistake about it; supply of Grade A properties is shrinking. If you want a home you would be proud to own, now is the time to go for it. While at Supreme Universal, we have announced three new premium properties – a commercial project ‘Supreme Headquarters’ in Bandra and two residential offerings, ‘Supreme Melange’ in Mumbai’s Matunga and ‘Supreme Estia’ in Pune’s Baner – the fact is, there have been very few launches in the last year or so. Thanks to various reasons such as a credit crunch, and now the pandemic, there were no launches at all during the April to June 2020 quarter; as I read somewhere, property launches took such a hit that they stood at their lowest since 2013. Today, there is a supply of Grade A inventory in the market for the buyer to get a property of his or her choice. In two years’ time, you can be sure that supply will reduce and it will become a sellers’ market. And if you buy now, not only will you get a good deal, but the value of your property is certain to rise as supply goes down.
Lower stamp duty: The cost of owning a home has also reduced. In August this year, the Maharashtra government decided to cut #stampduty charges on sale deed documents by 3% up to December 31, and then by 2% from January 1 to March 31 next year. This is only a temporary relief by the Government, so it is best to take advantage while you can!
Superb choices, reasonable prices, low home loan rates, and reduced stamp duty – what a combination! Property buyers have never had it so good and fence-sitters should move as quickly as they can because this will not last for too long.
This #festiveseason is that golden period in Indian real estate when the smart buyers will thank themselves forever!