In the backdrop of the lower home loan interest rates and reduced property prices, now is the most suitable time for potential buyers to invest in residential real estate.
The property purchase process involves two aspects- the cost of acquisition and the prevailing home loan interest rates. Given the market scenario post-COVID-19, the Reserve Bank of India (RBI) has reduced the repo rates a couple of times since the last year and adopted a stable stance thereafter to maintain the repo rates at four percent and reverse repo rate at 3.5 percent. This has made the home loan interest rates extremely lucrative, i.e. around 6.05 percent.
Apart from lower interest rates, property prices have also crashed post the COVID-19 outbreak. This presents a unique opportunity for investors to buy real estate assets. In the long run, for a country like India, which is highly populated, the residential demand will always supersede supply. This will significantly drive the property prices. Infact, in 4-7 years, people will again witness high home loan interest rates and increased residential values, which would soar the overall home acquisition cost.