Luxury Real Estate is Selling Fast in 2021
Pune is one of the fastest-growing metro cities in India. The weather, the proximity to Mumbai, and the young IT crowd make the city extremely attractive for real estate investment. However, Covid19 had brought the real estate sector to its knees last year. Though, things have started looking up now. In fact, as per reports by real estate observer Knight Frank, Mumbai and Pune led housing sales in the first half of 2021. The reports suggest that the Pune housing market evolved towards the mid and premium property segments during this period.
The Rise & Rise in Sales of Premium Properties in Pune
Let us explore what has led to the spike in sales of premium properties in Pune.
- Low Home loan interest rates
Cheaper credit is available now resulting in home loan interest rates plummeting to sub-7% levels. At 15 record year lows, the lending rates are extremely enticing for home-buyers, if they have the necessary margin money.
So, a year ago when home loans were in the range of 8-9%, a Rs 50 lakh loan for 20 years at 8.5% p.a. would have meant an EMI of Rs 43,391. But you now might get the same loan at 7%, which would mean your EMIs could go down by Rs 4626 to Rs 38,765, resulting in savings of over Rs 11 lakh in total interest payable.
Low EMIs also means that you may buy a bigger home or a premium property that was earlier unaffordable.
- Stamp Duty Cuts
The two-phase stamp duty reduction in Maharashtra has further led to decreased costs for home buyers.
Suggested Read: https://www.nirmandevelopers.in/blog/stamp-duty-reduction-in-pune-gives-a-boost-to-real-estate-investments/
- Demand for larger homes, better Disposable Income
Covid 19 got everyone working at home. So the children were home-schooling, adults were working from home creating a need for larger spaces. Besides, with nowhere to go out and spend, there are huge savings & cash reserves. People are now looking at investing in luxury and premium properties given that Covid19 is here to stay and they need a more comfortable environment when working from home.
- Better Deals
The kinds of offers and deals which homebuyers are getting now were usually seen only during festive periods. There is more supply than demand pushing developers to launch special finance options & schemes, discounts, and freebies when selling their projects. This makes home-buying more alluring than ever. Good projects may not offer a direct lucrative discount, however, buyers might get complimentary car parking or waiver of charges or staggered easy payment plans. In many projects, electrical fittings are being given free.
Also Read: https://www.nirmandevelopers.in/what-you-need-to-know-before-buying-premium-luxury-properties-in-pune/
Conclusion
Despite the closure of the stamp duty window and the second lockdown, homebuyers have been active from April to June 2021. Developers are willing to absorb the burden of increased stamp duty which is eventually leading to the closure of transactions.
The biggest gainers in this scenario are projects offering luxury flats in Pune. Nirman Developers is one such prominent builder in Pune renowned for building luxury and premium apartments. Increasing disposable income and low interest rates are pushing the market towards buying luxury apartments. This is a golden time to invest in real estate; if you have not done it already, take the plunge.
