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Is 2021 the right time to buy the property

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Drink Zoik

Is 2021 the right time to buy the property

The unseen benefit

Not all is gloom and doom for the sector. In fact, residential real estate has been reviving from the third quarter of 2020 as the economy opened. In the first quarter of 2021, total units sold in the top eight Indian cities went up by 44% to 71,963 compared to a year back. This surge in demand has also spurred launches by developers—total launches for these eight cities went up by 38% during this period, although launches declined in Bengaluru and Chennai.

Advantages of buying a house in 2021

If you are a first-time homebuyer or are planning to upgrade your lifestyle, this may be an ideal time to take the big step. From a purely financial standpoint, there are two key factors in favor of home buyers—subdued home prices and lower cost of credit to purchase a home.

To begin with, home prices are likely to remain under pressure in 2021. According to a poll by Reuters of 12 analysts between May 11 and May 19, average house prices this year are expected to remain unchanged from 2020, a downgrade from a previous poll in January that had estimated a 1.3% rise. Data from a report by real estate consultancy Knight Frank shows that average home prices fell in six out of eight major cities in the first quarter of this year compared to a year before—even before the second wave of COVID-19 hit the country.

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