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Should I buy a house now?

With a combination of demand revival, rising construction costs, and revision in the Ready Reckoner rates, up by 2.6% on an average, the real estate prices are witnessing a rise in the average capital values of flats in Mumbai.

The coronavirus pandemic had slowed down the pace of investment in the real estate market. Still, the reopening of the property markets has led to an increased interest of the uber-rich in the real estate sector.

The analysts believe that the property markets will resurge in 2022-2023, with high-end investors purchasing properties in the luxury segment, thus impacting the overall recovery cycle.

Metros like Delhi and Mumbai have seen a significant rise in property deals in the uber-rich localities. In Mumbai, the location of properties in and around the infrastructure development has seen a considerable surge.

According to a recent survey, the HNIs and the affluent investors have been very receptive to investing in the property market, especially in the properties segment of over ₹ 5 crores. The recent property news shows interest in 3 & 4 BHK sea-facing apartments in Worli has increased threefold due to the infrastructure development, especially the metro station and coastal roads. The 4.5-km-long Worli Sewri elevated corridor would connect the two sea links – Bandra Worli Sea Link and Coastal Road with the under-construction Mumbai Trans Harbour Link- to reduce travel time.

Considering the above factors, real estate in and around Worli has risen considerably, with the demand for 3 & 4 BHK Luxury Sea Facing apartments rising considerably. Homes with sea views and travel convenience have been major factors for the growing demand.

Homes like Vraj Tiara at Veer Nariman Marg, Worli, have proven to be one such project that is an investment-worthy property for its proximity to Worli metro, Coastal Road, and the upcoming Worli Sewri elevated corridor, and Bandra Worli Sea Link. The 270-degree 3 & 4 BHK sea-facing apartments have featured amenities like a kids’ play area, jogging track, cafeteria, sky lounge, barbecue area on the terrace, 8 level ramp car parking facilities, and a dedicated gym on the 24th floor for a decent lifestyle living.

Though most home buyers are in a dilemma about whether it is the right time to buy, a well-known realtor would say,” inflation is your friend when you own appreciating assets; while inflation may be high now, the market will see dips and corrections. Eventually, the real estate will rise in value.”

As per the department of registration and stamps, Government of Maharashtra, nearly 5,995 conveyance (sale) registrations were documented until April 16 this year. Last year, conveyance sale deeds for almost 10,000 homes were recorded in April because of the concession in stamp duty. On average, conveyance sales for 5,000 to 7,000 homes were recorded simultaneously from 2014 to 2021.
But many investors, realtors, and homebuyers disagree over whether or not we are in a so-called housing bubble.

What is a housing bubble?
Housing or a real estate bubble is a price build-up fueled by demand, assumption, and spending power. It usually begins with an increase in order followed by limited supply, and it takes a relatively extended period to replenish and increase.

Here are a few reasons to invest in properties
  • A shifting economy, a rise in remote work opportunities, and a desire to relocate to convenient and well-connected areas.
  • Interest Rates are still low compared to the expected rise in 2022.
  • The demand for rentals will increase. The rising home value will impact the rental market and the price. Until the real estate opens up and prices stabilize, the rentals will become expensive for many individuals.
Decide whatever Real Estate makes sense for you.
As a buyer, your decision to purchase or invest in the property would entirely depend on your choice of location and flexible work options, and lifestyle choices for the family.
However, if you wish to invest in real estate through rental properties, it would be an excellent practice to pen down the pros and cons and decide what type of property makes more sense.

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