If there is anything that Indians love investing in after gold, then it is house (property). Indians love good schemes and waste no time in investing in them. This world pandemic might have provided them such an opportunity where they can save lots of money while buying houses. Not only have the property rates gone down but the home loans rates can be said to be at their lowest. There cannot be a better news for our fellow nationals.

What is in store for Indians in post Covid-19 residential market?

The property prices had been on a constant rise since 2014. The only time it ever took a dip was in 2016 and 2018 when the builders had an off season but price dip in Covid times is worse. Since no one is ready to buy home, the prices have fallen quite a lot since no one knows when everything will resume. With a very weak demand and excess supply case, the prices will have to drop to make sales. With all the workers gone back to their homes in a totally different state, the builders have very less man power to even try and resume their construction activities. With no end in sight to this virus, the delay in completing of constructions will be huge and this means the builders will have to incur huge losses.

Whether to wait or to buy?

According to statistics, the sales have gone down by massive 81% in metropolitan cities. A consumer survey shows that 70% of the consumers are interested in buying properties but are waiting for the right time while less than half of them have no issues buying it instantaneously. In fact, millennials who prefer renting houses are looking to invest in homes by buying them. Even so the demand has fallen. So if there is no job insecurity and you are financially stable and have money to invest in then this is an opportunity for you to invest.

The major concern right now is whether investing in under-construction projects safe. With most workers gone back to their homes, it is slightly risky to opt to invest in an under-construction project. The delay caused due to the pandemic is unknown. A few projects have been thrown off their schedule by as much as a year in these past four months because now the season has changed and it is very difficult to construct anything during rainy season. It might be safe to buy ready to move in houses instead of under-construction even though the profits in under-construction projects are higher.

The rate of interest on loans has been reduced by the Reserve Bank of India (RBI) and the lowest rate of interests are under 7% p.a. contrary to the >8.5% p.a. as seen at this time last year.  Further note that Pradhan Mantri Aawas Yojana offers interest rate subsidy, the rates could go even lower depending on your income level. This definitely is golden opportunity for those looking to buy homes and it wouldn’t be surprising to see pouncing at this opportunity.