Real Estate News

Is 2018 The Best Year to Buy A House?

Best Year To buy a house
Written by Team Urban Tree


Deciding on the proper time to invest in real estate can be a daunting task. Buying a house brings with it not only joy but also comes as an investment. With such a huge monetary investment on the cards, even the most confident people can have double thoughts. With every New Year there is a recurring question raised by the home buyers and property investors – is this the best year to buy a house? Setting the perfect timing for your real estate investment can be very beneficial in the long run. And this is why people want to invest when the environ is ripe! As 2018 is still quite young, home buyers and property investors are trying to figure out the potential for this year. Well, let us tell you that the first two quarters of 2018 would be a conducive time to invest in the real estate sector. With friendly norms and low-interest rates, there could not be a better time to own a house. If you are looking for some more reasons, here they come…

#1: Buyer Friendly Real Estate Reforms

Even in the last quarter of 2017, the positive effects of real estate reforms could be witnessed. In the bygone year, the real estate sector underwent massive changes on the back of some reforms such as Real Estate Regulatory Act (RERA) and Goods & Services Tax (GST). Both these regulatory frameworks will lead the sector towards a new path of prosperity. Under the provisions of RERA, all the real estate projects have to adhere to certain norms. RERA has made sure that the real estate projects would now be completed and delivered on time. It also assures that the money paid by the home buyers is not used for any other purpose, but for the construction of their homes. RERA would curb the fly-by-night operators and make sure that committed players solely exist in the real estate sector.

Conclusion: Home buyers can expect quicker project deliveries and fewer cases of duping and delaying in 2018!

#2: The Demand and Supply Gap is Bridging

Largely due to excess supply (which came at a high price bracket) and low buying capacity of Indians, there was a huge mismatch noticed between the demand and supply. The buying capacity was also impacted by the economic reforms such as demonetization and the expectancies from the GST bill. This created a pro-buyer real estate market. Buyers had a chance to land high-value properties at affordable rates. But the RERA is set to change all that. The new home launches are expected to go down by as much as 75% in the first quarter of 2018. This will mean equilibrium would be reached between demand and supply. But the effects would ripple through after the first two quarters of 2018.

Conclusion: The real estate rates would climb upwards within the next couple of quarters. So, this is the best time to start looking for property. You might still get a lavish property at unbelievable rates.

#3: Interest Rates for Home Loans are at their all-time low!

Some months earlier, RBI reduced their lending rates to counter the excess liquidity existing in the banking system. As a result of this reform, the interest rates for home loans which were recorded at 9.5% in 2016 are now languishing in the range of 8.3-8.4%. And the home loan rates are expected to remain low, at least over the next several quarters. This would lead to considerable EMI cost savings for the home buyers. Prospective home buyers would get low-cost home financing options. With the rental appraisals at around 5-6% (yearly), owning a home has become a lucrative proposition for the interested individuals.

Conclusion: Owning a home would become a better option than staying on rent. With lower than ever home loan interest rates, enthusiastic buyers are sure to make a lot of EMI cost savings.

#4: Renewed Interest from the Global Investors

The new reforms and regulatory structures that have been laid down by the government of India are showing positive signs in terms of global investments in the real estate sector. Today, the global investor’s fraternity is confident of investing in the Indian real estate sector. As the projections have it, India could receive Private Equity (PE) investments in the range of US$4 billion during 2018! Investors from the US, Singapore, and Canada would be the front-runners in this investment spree. Other countries such as China, Japan, Hong Kong, Qatar, and the Netherlands are also keen to invest in the Indian real estate sector. With more investments coming in, the real estate sector in India would remain very stable and grow exponentially.

Conclusion: Property buyers can expect great projects coming their way. Path-breaking properties with astounding amenities would become readily available on the back of such high foreign investments.

So, 2018 is THE year to buy a new home and start calling yourself a proud homeowner!

About the author

Team Urban Tree

Urban Tree are the creators of magnificent homes in Chennai. Urban Tree is committed to creating world-class homes featuring innovative new styles that are meticulously integrated into every aspect of modern day living.

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