With lower prices, now is the best time to buy a house in India: HDFC chief – News
Although real estate prices in major Indian cities have more or less stayed the same, people’s income levels have increased
Now is the best time to buy your dream home in India and people shouldn’t postpone their decision because the prices won’t go down, said a top industry leader.
HDFC Vice President and CEO Keki M. Mistry noted that with low interest rates, stable property prices, higher annual incomes, government subsidies and incentives, and reductions in stamp duty , the accessibility factor improved during the pandemic.
âReally, I think this is the best time to buy a house. Interest rates won’t go down, house prices certainly won’t go down. If anything, they will go higher over a period of time. As for the various government benefits, every conceivable benefit has been given, there is a subsidy scheme, CLSS (Credit Linked Subsidy Scheme), home loan interest deduction, home loan principal deduction. Whichever way you look at it, now is the best time to buy a home, âMistry said. Khaleej weather on the sidelines of the 33rd annual international seminar of the Abu Dhabi Chapter of ICAI on the theme: âBuilding a stronger emerging resilienceâ.
Although real estate prices in major Indian cities have more or less stayed the same, people’s income levels have increased, he noted. Each year, income has increased by at least 7 to 8 percent.
âSo over the past four years, incomes have increased by almost 30%, and house prices are where they were four years ago. So in terms of the cost of a house as a multiple of the annual income to the customer, that The multiple has gone down so much, which means it’s the best time in terms of affordability to buy a house, âhe said. Mistry said.
This “attractive” buying period has not been observed for the past 20-30 years, he added. But over the past 14 months, the growth momentum has accelerated considerably from the Middle East.
âWe have seen growth in the NRI belt, particularly in the Middle East. Many people buy homes, first, second, or third homes on the subways. NRIs see a lot of growth potential in India and are investing in homes in India. Many NRIs buy houses in Mumbai. If you see four years ago and today, the number of applications for Mumbai would be 30-40% higher, âhe said.
Mistry pointed out that contrary to popular perception, there is no oversupply and with increasing demand, prices can rise.
âThere is still a belief that the prices would go down. Now that the demand has grown so much in the last 14 to 15 months, people are realizing that there is no oversupply at all. So for everyone sitting on the sidelines and waiting, they realize that the offer isn’t that big.
âAt some point, who knows, if this demand continues, prices may even start to increase, which has not happened in the past 4 years. So in that sense, this is really the best time. to buy a house. ” he said.
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And with improving affordability, he noted that demand for housing has picked up across the country.
âPositively, over the last 14 months or so we have seen very clearly a surge in demand for residential housing across India, including metropolitan cities,â he said.
Mistry added that the housing and real estate industry has grown structurally stronger over the years.
âIn India, a person does not buy a house when they are 20 years old. The average age of a first-time home buyer in India is between 38 and 39 years old. With two-thirds of the population under 35, in three to ten years, all of these young people will reach an age where they will necessarily buy a house. There will be a structural increase in housing demand in India over the next few years. I remain optimistic about the future of the housing sector, âhe said.