Hello home buyers, hunting on and off to invest in housing properties? Here the blog says it all. Ever wondered how and why the real estate market encounters inflation? Take a quick read to make the right decision and make a wise investment.
Interest rates in housing properties are comparatively less compared to other investment options. There is an abundance of buyers and sellers in the housing market, so prices are increasing rapidly. This makes now an ideal time to invest in housing properties, as there is a good prospect for a higher return on investment. Despite lower-interest rates, buyers stay active in the real estate market, which shows the demand for properties remains high so that prices haven’t decreased yet! To be precise, investing now gives you a reasonable opportunity. As a result, housing prices have been rising for a long time, indicating that the market is in good condition.
A drastic rise in the raw material
The aftermath of the pandemic has left a massive impact on Indian real estate. In a promising market, the developers are not up to raising the price. However, if the cost of the raw materials rises, the builders will be stranded with no option but eventually pass it to the end users, the buyers. However, the developers are already struggling with a labor deficit, and further leaps in raw material prices will be the final result. However, even such developers will be incapable of giving extra discounts and offers. Due to the escalating price of raw materials, the overall construction cost has been increased to Rs. 400 – Rs. 600 per sq. ft.
Probability of inflation in future
Inflation is an increase in property costs and results in a decrease in purchasing power. According to Zillow market research firm, home prices in India increased by an average of 8% per year from 2000-2017 – which is the super fastest global inflation rate, which is a clear indication that real estate inflation will continue in the future as well. This could result in significant price hikes in property variants, including residential, commercial, and farmland properties. Even the slightest price increase would influence housing affordability in India, leading to overall discontent among probable buyers.
Invest Now. Save More. Escape Inflation
As the saying goes, time and tide wait for none. Therefore, now is the ideal time to invest in housing properties.
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