“It is a major concern and we feel construction costs have risen by about 25-30%, which may have a bearing on apartment prices over some time. Over the next 3-6 months, we expect property prices to go up by 10-15%. For the last 5-6 years prices have not risen,” CREDAI national president, Harsh Vardhan Patodia told FE.
After remaining steady movement for the past 6-7 years, real estate prices are beginning to recover in selected projects. Domestic real estate market is showing signs of steady recovery with both residential and commercial property segments recording healthy growth in the July-September quarter. Prices are expected to rise 1.3-1.4x from current levels over the next 4-5 years, or 4-5% on a CAGR basis.
One of the main reasons that led to this sharp recovery is attributed to affordability seen in property prices due to multiple factors such as discounts offered by developers, lower stamp duty and low interest rate offered by financial institutions. However, this has been observed to have reduced in the recently concluded September quarter. Few prime residential markets such as Chennai, Bhiwadi, Pune, Jaipur, Jamshedpur, Jodhpur and Gurgaon have seen marginal price increase in recent months.
Price growth: City-wise break-up
|City||Annual growth in %|
Source: Makaan Real Insight (Residential) – July-September (Q3)2021
For areas analysis of the growth trend, please check out – https://www.ashianahousing.com/real-estate-blog/are-property-prices-going-up-in-future-2021-and-2022
The silver lining in all this price hike of raw material and appreciation in the Real Estate Industry is that the investors or buyers looking to buy a house later on i.e. after Q3 or in Q4, 2021, can buy/invest in the properties right now, to avoid the increased pricing of the same properties.
Property values are seeing an appreciation and the trend is likely to continue over a few years, starting this month itself. Also on the buyer’s part, the consumer affordability is at peak high due to steady income, lowest ever interest rates & low registry cost with benefits in many states. Adding on to the favours on the buyer’s side, the real estate industry hasn’t actually seen a price increase in over 4-5 years, making it the best time to buy.
It’s the perfect time to invest in real estate. Every month of delay could lead to depreciation in investment value as the property value will keep on increasing. One of the key factors of any investment is to channelize the funds at the right time and for real estate, THIS IS THE RIGHT TIME TO INVEST!
For many consumers, real estate investments are usually once in a lifetime investment. Buying property from genuine developers ensures high returns on your investment. It’s important to not fall into the trap of sham deals and over-discounted properties but instead to invest money in safe hands. Better constructed homes, lifetime maintenance, on-time deliveries, and much more with a reliable brand are deemed to give better property appreciation than just another discounted property in the long run.
Investing in Real Estate can be really fruitful right now as overall inflation in the property rates is bound to happen following the price hike in the raw materials. Be it for saving yourself to spend the extra money after the hike or benefiting from the increased price of real estate, NOW IS THE TIME YOU INVEST IN BUYING YOURSELF A HOME!
Ashiana, Ashiana Housing build homes. Homes surrounded by vast green spaces and fresh breeze. Homes cocooned in secured gated complexes. Homes where futures are forged and there are opportunities to grow. And Homes in environments brimming with healthy activity, trust and respect. At heart, we build communities with care.
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