The upcoming festive quarter will be a gala event for those willing to buy a property. With home loan interest rates at an all-time low and top banks competing with one another to provide attractive offers, this period is bound to witness the highest sales in 2021.
Low home loan interest rates have always had a significant impact on buyers. This, when amalgamated with the auspicious festive season, sets high prospects for the real estate sector, especially the residential segment. The historic low-interest rates have immensely supported the realty industry in dodging the pandemic shocks and staying resilient. Resultantly, the housing sector has performed phenomenally well, and the sales volume has grown by over 90 percent in the Jul-Sep quarter of 2021. According to the latest report by Knight Frank India, the Q3 2021 quarter saw a notable sale of 64,010 units compared to 27,450 units during the corresponding period last year. A record improvement has also been witnessed in the new launches of residential units, which increased by 90 percent to 58,970 units in Q3 (Jul-Sep) 2021 when compared to 27,230 units in Q3 (Jul-Sep) 2020.
Amid the pandemic, people have realised the importance of owning a home as it ensures a sense of security, stability and comfort. The millennials have also acknowledged the benefits of home ownership. Another crucial factor behind the growth is the Reserve Bank of India's (RBIs) firm stand on keeping the repo rate unchanged. This stand has allowed various banks to cut rates, playing a pivotal role in further encouraging the fence-sitters. The rates currently stand between 6.5 percent and seven percent, which is likely to have an important role in people's home-buying decisions. The banks have even stepped ahead to waive the processing and service charges, which is a welcome step.
Furthermore, loan seekers are always searching for high-value loans for a very long period; thus, even minute changes in rates can protect them from unwanted risks or expenses. It is unlikely that rates will increase soon, and customers can consider it an opportunity to make the best bet. This is probably the most suitable time for buyers, mainly the fence-sitters, to go ahead with their purchase decisions. Additionally, many are also considering upgrading from renting a property to owning a home or even bigger homes, and low rates are creating a conducive environment for them.
Lastly, the current scenario has also brought opportunities for investors to invest in long-term assets for a secured future, higher returns, and attractive rental yields in residential projects. Precisely, it would not be wrong to say that with the world bouncing back to normal, the real estate sector is expected to soon achieve the pre-COVID-19 growth levels. The revival in the economy, low interest rates, increased hiring activity and higher purchasing power enable buyers to go ahead with their home-buying decisions. The market is growing, with developers offering better and customised housing units and the Government providing buyer-friendly policies. Hence, those who are willing to buy property now is the time to take the plunge.