The majority of real estate professionals would concur that the pandemic did not wholly suppress potential investors’ choice to purchase homes; rather, it just delayed it. Most first-time homebuyers put off the decision while they awaited the end of the pandemic. The coronavirus undoubtedly presented significant hurdles to the entire real estate industry, but the property market is optimistic once again and it will undoubtedly turn out to be a fruitful year for first-time homebuyers.
Below, we have explained why you must buy new home in 2022. Let’s understand the 2022 residential sector in India with the example of buying a new home in Mumbai.
Reasonable Real Estate Prices
Despite expectations of a sharp price increase, the beginning of the pandemic and the Russia-Ukraine conflict has destabilized the global investment environment once again. The price increase is most likely to be postponed until the end of the year. Even though real estate costs have gone up in some places, they are still reasonable and maintain the market’s accessibility to first-time buyers.
The pent-up inventory and the eagerness to clear the housing stocks are keeping the prices from rising because the real estate industry was unable to attain the necessary sales numbers in the past couple of years. What better moment than the current year to purchase a home for the first time?
Falling Returns in Other Instruments
With the epidemic as a backdrop and numerous international conflicts, classic financial instruments’ returns are steadily declining. The investors would typically put their excess funds in fixed deposits (FDs), gold, and post office savings plans. However, the meager returns of 4% to 5% per year have turned investors away from traditional securities and toward the real estate market.
On the plus side, it builds a strong asset for the investor and ensures a respectable return over time. Investing in property has never been easier for first-time investors, with a multiplicity of possibilities ranging from plots, commercial properties, and villas to flats.
Handsome ROI Opportunities
Investing in real estate necessitates both a significant financial and emotional commitment. In any case, even if a property is purchased for immediate occupancy, investors will always consider their return on investment and the potential for price growth. First-time investors are seizing this opportunity due to real estate pricing that is both attractive and reasonable. Property investors are aggressively looking into options in smaller cities as well as megacities like Delhi or Mumbai. The return-on-investment potential in these locations, where investing is reasonable, is luring investors in from all over.
In addition, real estate experts predict that by year’s end, real estate prices will have increased by an average of over 30%.
Government Push
The objective of housing for all by 2024 is consistently a point of focus for the Indian government. The government is working hard to make housing as affordable as possible via its flagship programs, including Pradhan Mantri Awas Yojana (PMAY) and affordable rental housing projects. The PMAY was extended to 2024 in the most recent budget. This demonstrates a persistent dedication to the affordable housing market.
First-time homebuyers might receive a sizable subsidy for their home purchase through programs like the Credit Linked Subsidy Scheme (CLSS). This subsidy gives the family’s female member ownership benefits and is classified according to the applicant’s income when a home loan is used to obtain a subsidy.
In a nutshell, above we have mentioned the prime reasons why it is the best time to buy property 2022; thus, you can consider them to buy a new apartment MMR or anywhere in India.
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