Property

How has Buying a Home Become Easier in 2021?

The COVID-19 pandemic has sent shockwaves across the entire world’s markets, and the real estate industry is no exception. It has had an impact on the economic conditions of most of the population, leading to a slowdown in demand. The housing industry in India witnessed a weakening of demand since the pandemic hit the entire nation. As per various surveys, the sales of housing properties have been relatively low since 2020, with only 12,730 units being sold in Q1 of 2020. This has made home buying easier in 2021, with the industry still gradually returning to pre-pandemic normalcy.

Buying a Home

In this scenario, the following factors are making home buying easier.

1. Interest rates at an all-time low:

Investing in a home means availing of a home loan for most people. The reason for worry always seems to be high home loan interest rates. But after the pandemic, it is not necessarily so. In the last two years, we have seen a decline in interest rates which is yet to be followed by a rise in rates. Unless the RBI decides to alter the situation, interest rates are likely to continue at their current low for some time. This has made home loans affordable for most home buyers.

2. Incentives to the homebuyers:

Some sellers are offering schemes like “No equated monthly instalments (EMIs) until possession.” While this doesn’t mean ignoring a home loan EMI calculator, it certainly makes the entire process more pleasant. For instance, stamp duty was temporarily removed in two phases in Maharashtra to further encourage the real estate market. With such incentives, it would mean additional savings and ease for people planning to invest in real estate.

3. Remote residential projects have taken over:

With the increase in working remotely in 2020, people have gained the confidence to own or expand their present home to a bigger one. It has been observed that the demand for 3BHK units has risen since the pandemic. This is a response to the “stay at home” situation prevailing in recent times.

4. Women have added benefits:

If the buyer is a woman, there is an added benefit of paying a percentage point less in stamp duty in 2021. This is applicable in states like Maharashtra, Uttar Pradesh, Bihar, Haryana, Punjab, and Delhi. Most lenders have also reduced the home loan interest rates in the case of female borrowers. These benefits continue to ease the availing of home loans.

5. Expanded network of RERA:

RERA stands to protect the interest of buyers and help them proceed with the purchase of their dream home with confidence. With every passing year, more and more developers are coming under RERA compliance. So, the reliability of projects has increased, making it easier for a homebuyer to make a decision.

Buying a home is an important decision, and personal preparedness is crucial for it. However, keeping the above factors in mind, it may be a profitable deal to buy a home in 2021. So if you have always wanted to buy your dream home, there’s no time like the present to do so.

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