Lower prices, lower interest rates and rising affordability have made it the best time to buy residential properties, say experts.
In a recent interview, Keki Mistry, chief executive at HDFC said it is the best time to buy a property.
” First, by virtue of the fact that interest rates are significantly low. Since 2008, e whave not seen rates as low as this. I don’t believe rates will go down any further.Second, property prices haven’t gone up in recent times so one would believe there is time correction of prices. Third, all incentives are provided by the government for people to buy houses,”Mistry said.
Mortgage rates have come down by 150 basis points in the last two years bringing them down to 12-year lows, and this is gradually improving affordability. Every 100 basis points mortgage-rate cut is equal to 5-6 per cent price cut, CLSA has noted.
Housing prices fell by 1.67 per cent to Rs 6,185 per sq ft in Q4 (January- March) from Rs 6,290 per sq ft in the December quarter in major cities such as Gurugram, Noida, Mumbai, Kolkata, Hyderabad, Bengaluru, Pune and Chennai, data analytics firm PropEquity has said.
According to international brokerage firm CLSA,the price of a mass-premium house located in a metro city suburb having a ticket price of Rs 60 lakh has remained flat on a year-on-year basis. Read More