Property Prices Likely To Rise Across The Country
The highly dynamic real estate market had seen a quiet downturn during the COVID pandemic and the months following it. However, experts believe this trend is likely to change in the coming year with property prices likely to rise.
The unprecedented global impact of the pandemic had massively cooled the property market. Be it luxury housing or affordable flats in Thane, individuals went from looking to purchase a house to focussing on making ends meet.
However, with things returning to normal, people are once again looking at ongoing projects in Thane to invest.
Property prices to rise pan-India
According to a Reuters poll, property prices in India are expected to increase 7.5% across the country this year which is the fastest growth in five years.
As per the poll, the prices in Mumbai and Delhi, including its surrounding National Capital Region, are expected to rise between 4% and 5% this year and next. Additionally, cities such as Bengaluru and Chennai may witness an increase of as much as 5.5%-6.5% over the next two years.
For those looking to purchase luxury 2 BHK homes In Thane and other prominent locations, it is advisable to purchase sooner than later. As the property market continues to grow, buyers may land up spending a lot more in the next couple of years for the same property.
Reasons for increasing property rates
Several factors have contributed to the price increase of real estate projects in Thane. Some of these include:
Increase in demand
As the workforce and job security have stabilised again, buyers are once again looking to invest in property. From affordable flats to luxury homes, the overall demand for property is on the rise contributing to the price elevation.
Rise in building material cost
The disruption in supply chain since the pandemic has contributed significantly to the price gain of various raw materials. In addition, political uncertainties in certain parts of the world along with the Russia-Ukraine war have led to an increase in various input materials which has further elevated property prices.
Rise in repo rate
The Reserve Bank of India hiked the benchmark repo rate to 4.40% (up by 40 basis points). The repo rate is the rate at which the Reserve Bank of India lends money to banks. This rise after four years is likely to further translate to the customers by means of higher interest rates on loans and EMIs, all of which are likely to make the final cost higher.
Even with all these factors contributing to an uptrend in the property markets, experts are confident that the trend will continue. This is because most people are actively looking to purchase a home. For some, the elevated prices may act as a deterrent for purchasing a home causing them to look at rental properties. However, the elevated price trend is likely to transfer to the rental market as well with rents expected to increase significantly in the coming years.
For buyers looking to enter the real estate market at the current affordable markets, it is advisable to finalise their purchase in the next few months and not delay for much longer.