The pandemic has made people value home over ever before and are now more particular about their choices. On the one hand, while property values have remained stable, average yearly income growth has been between 8% and 10%.
Property prices were, on average, roughly sixfold a buyer’s annual income in 2000. In 2021, the typical price of a home acquired by a person was fourfold their annual salary.
A pointy decrease within the cost of funding – average consumer credit rates reduced from around 8.9% in 2019 to below 7% now, over offset the adverse impact of lower incomes on affordability.
At the present house loan interest rates, someone could get an extra loan of around Rs 6.5 lakh. The EMI is reduced if the person decides to require out an identical loan amount.
The EMI would be roughly Rs 4,000 but it’d be before the house loan interest rates fell. On the opposite hand, reduced home equity credit interest rates are just one aspect of the affordability issue. To draw in the target market, the property came up with interesting offers and discounts to create assets cheaper for the buyers; this was the time to retain the clients.
Home buyers preferred completed apartments to avoid the risks related to under-construction properties. In 2021, the sale of RTM in Delhi-NCR rose to over 25% compared to around 15% in 2019
In the post-COVID scenario by 2022, the NRI investments within the Indian residential market also are expected to extend because of reduced uncertainty related to a pandemic, superior exchange conversion rates, and increased transparency thanks to stricter regulatory measures.
The sale of RTM in Delhi-NCR rose to over 25% compared to around 15% in 2019. However, by end of 2021, RTM properties will have limited supply; thus, in 2022 we’ll witness increased demand for newly launched properties for credible and established developers.
The value differential should fuel up the demand for under-construction property. The world understood this upcoming demand resulting in the rise in new launches, which grew by around 50% y-o-y in major property markets.
In 2021, we’ve learned that affordability has been a very important factor for the bulk of buyers.
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