Price Hike In The Real Estate Industry: A Glimpse
The post-pandemic demand for quality housing has been unprecedented. With prolonged periods of working from home and the high possibility of that continuing to be the norm, more people are looking for affordable housing options that do not compromise comfort and convenience. However, the price situation could look better for homebuyers than in 2021.
Homebuyers had it the best in 2021 with the lowest interest rate in the longest time and government initiatives like registration fee waivers, stamp duty cuts, etc. Moreover, property prices were also relatively stable or cost-efficient during that time as the real estate sector was trying to overcome the impact of the pandemic. In a nutshell, the conditions were favourable to homebuyers to invest in a home while at the same time offering a badly needed push and consolation to real estate builders. However, now, coming to 2023, the dynamics have changed significantly. With the rise in consumer demand, the market is experiencing a noticeable price hike. Regardless, 2023 is expected to sustain the momentum of the upbeat sales in 2022.
Since the beginning of 2022, property prices have been on the rise. However, 2022 was a good year for both homebuyers and builders. The housing market grew 40% in the first nine months of 2022. According to a survey by independent property consultant Knight Frank India, many major cities of India marked the highest unit sales so far in the third quarter of 2022. Amidst market volatility, the Indian real estate market is still emerging as one of the most preferred investment avenues. The primary reason behind this is the attractive rental yields and potential for further price appreciation.
The increase in the price of houses is a direct reflection of the surge in the cost of raw materials and overall construction. However, the most interesting fact is that, despite the hike in repo rate, increasing home loan interest rates, and appreciation in real estate prices, the housing demand is expected to remain strong in 2023 as well. A recent survey shows 59% lean towards investing in real estate over other Indian equity markets.
In short, property prices are also expected to rise in the year 2023. However, real estate is still one of India’s most feasible investment avenues to guarantee profitable returns without risks. Real estate experts believe that the demand for quality housing options is going nowhere, at least not as long as the interest rates remain in single digits. They also think this trend change wouldn’t significantly change demand for high-rise luxury homes.
Alembic Kiara is one of the most prestigious projects by the Alembic Real Estate Group, India’s leading real estate builder. It has spacious and luxurious 4 BHK luxury apartments in Vadodara, perfect for people looking for homes that complement their lifestyles. These 4 BHK apartments in Chhani Nizampura come with extra space, finesse, exclusivity, security, fresh air, ambience, and much more and are designed explicitly for people who deserve extra. As long as the Indian real estate market is on the rise, an excellent real estate investment like Alembic Kiara will never be a plan gone awry.