The COVID-19 pandemic has already impacted 185 countries with more than 2. 5 million cases of infection. The pandemic has crippled industries, markets and economies all over the world, and the real estate industry is no exception. Due to the lockdown implemented across the country, ongoing constructions and visits to sites have completely stopped, bringing down housing sales and leaving developers deferring on their new project launches. The pandemic has also reduced investments from home buyers and real estate investors.
In these difficult times, you might be wondering if it is advisable to invest in a home. While this may seem like an unreasonable time to invest, there are many unexpected benefits in buying a home right now.
Why it makes sense to invest in real estate right now
Lowest lending rates
The biggest incentive for homebuyers is the RBI’s decision to reduce repo rates to an all-time low of 4.4%. This brings down the interest rates for home loans because most banks in India have loans that are linked to external benchmarks such as repo rates. Hence, the interest on home loans is down by 7.20% – 8.05%, the lowest in over a decade. To give an example, when RBI passed the decision to reduce repo rates, the State Bank of India announced a reduction in repo-linked lending rates from 7.40% per annum to 6.65% per annum. Which means, EMIs on repo-linked home loan accounts get cheaper by roughly ₹52 per lakh, on a 30-year loan.
Attractive offers & negotiable prices
At present, developers across 9 cities are left with an inventory of over 4,00,000 unsold apartments, worth around ₹600,000 Cr. Facing a slowdown in home purchases, developers and builders are anxious to sell off their properties to maintain their cash flow and liquidity. So much so that, many developers are ready to offer refundable booking amounts with zero cancellation charges and additional cashbacks to attract more buyers. Besides the excellent offers on homes, a buyer is also in a great position to negotiate deals with their agents or builders. With the entire country under lockdown, developers are improving their online facilities, allowing you to check out under-construction properties through video walk-throughs, and also making online booking deals looks very attractive.
Once the lockdown comes to an end, experts believe, the real estate industry will bounce back with the price of properties returning to earlier rates. If you invest now, taking advantage of the current discounts and deals, you can expect very good returns on your investment post lockdown. Moreover, with the depreciation of the rupee close to 10% due to the slowdown in the global economy, this is the opportune time for NRI’s to invest in real estate in India.
Things to keep in mind
If you are convinced that investing in real estate right now is a wise choice, here are a few points to keep in mind before finalizing your decision.
Inevitable delays in delivery of projects: Demand and supply for new projects have reduced drastically due to the lockdown. A large number of construction workers are stuck at home. That is why, even if the lockdown is lifted, it will take a while before construction work resumes to normal.
You might have to decide without visiting the project: If you haven’t visited the project site before the lockdown, you will probably have to make a decision based on images and videos online. What you see online, may be a little different from what you get in the end, so scrutinize carefully before taking the decision.
Don’t settle for anything less than spectacular: Developers are desperate and the onus is on them to sell during this time. So, capitalize on the situation and choose only from the best deals at your disposal.
Pay through reputed payment gateways: The lockdown has also created doorways or rather windows of opportunities, for financial frauds online. Every day, we hear about people being scammed through fake payment gateways and methods. Be very careful and make sure that the payment is through a validated, authorised payment service.
Choose a reputed developer & project: It is always wise to go with developers who have been around for long and earned a name in the industry. Do read up on reviews of other buyers and their experience with developers before taking the plunge. Investing with reputed developers such as Salarpuria Sattva is always advisable.
If you’re looking to reap the benefits of this lockdown, Salarpuria Sattva’s Zero Lockdown Offers can help you avail the best deals as there are zero cancellation charges for 3 months on your dream home! Here is your chance to book a premium home from upscale residential developments, that are located in the fastest appreciating areas of Bengaluru, close to all the prominent hubs of the city. What’s more, you will also win ₹50,000 cashback upon booking and paying online, with zero cancellation charges and zero shifting charges. Hurry, offers valid only till the 3rd of May!