Introduction
Unforeseen | The value of real estate is increasing exponentially. This is the current trend across the country. In Hyderabad, the average price per square foot for apartments is between Rs. 6,500 – 7,000. Prices have increased from a minimum of 15 percent to a maximum of 25 percent compared to last year. On the other hand, the RBI is trying hard to reduce interest rates. Therefore, it is better to buy a house or land now.
Table of Contents
Common People Dream
Everyone’s life takes a significant leap when they own a home. However, common people are losing their dreams due to unexpected changes in the real estate market. If the middle class sits on the throne of hope, prices will fall, and interest on loans will fall.
But looking at the current market trend, it is not that easy. The RBI insists that interest rates will come down only if the brakes are put on inflation. As a result, house rates and interest rates on home loans are gradually becoming burdensome. In this context, if the consumer is in a wait-and-watch mode, the loss is greater than the gain.
Programs Undertaken by the State
The development programs undertaken by the state government in the past ten years and the infrastructure provided. Real estate has made a run for the market, especially in Hyderabad and its surrounding areas. As a result, prices have increased by 24% compared to last year.
Increase in Cost
Even though many people believe that real estate prices will go down in the future, industry sources say that in reality, it will be difficult. The crisis has resulted in a significant increase in labour costs. In addition, the prices of other construction materials, including cement and steel, have also increased drastically.
Furthermore, house prices are increasing further due to regulations such as RERA and Goods and Services Tax (GST). Buyers must bear the burden, as there is no scope for deviations or defects.
According to experts, there is a risk that our aspirations will remain a dream if we decide to purchase during a period of low interest rates or when the price of houses and apartments is low. So it is better to buy houses and plots early.
This is because the cost of construction will always be higher as soon as construction costs rise. Calculations show that a flat bought for Rs. 50 lakh this year will have to be bought for Rs. 55–58 lakh next year. The RBI is not thinking about interest rates now.
The home loan we take is not less than 20 years. It is a normal process for interest rates to rise and fall over this long period. Interest rates increased by 2.50 percent during the year. Most will gradually decrease in the coming period. There will also be regrowth. It would be better to buy a house if possible.
Also read: Why are residential projects in Mulund getting more popular?