Real-Estate Prices Surges as the Market Bounces!
The pandemic has put significant pressure on the real estate market. Also, the rising demands for housing and lower interest rates have put a tremendous impact on the housing market. However, if you are looking for a house under 50 Lakhs in Jaipur, there are not many choices available. According to developers, the surge in the price of raw materials has led to rising property prices. Also, high-rise apartment projects are offering multiple amenities like swimming pools, gyms, yoga rooms, etc. which add up the cost of the apartment.
As per Dhirendra Madan, President of Credai-Rajasthan, apartment projects are offering better lifestyles through amenities. Over the last couple of years, construction costing has increased significantly. These are the reasons why high-rise apartment projects are offering apartments that cost over Rs.50 Lakhs. With the rise in the price of construction materials, builders are struggling to finish their affordable apartment projects. Also, the builders do not get a decent margin over apartments if they sell them for under 50 Lakhs. It is a matter of margin that has set a trend for apartments over 50 Lakhs.
With a surge in demand for housing projects, there are many other reasons involved leading to more buyers coming to the market. As per Anand Mishra, the Vice President of Credai, some reasons why more buyers are coming to the market as the interest rates on home loans are very lucrative. Also, there has been a pent-up demand during the pandemic that rested idly which is coming to the market now. Also, due to constantly surging prices, people feel that if they don’t buy a property now, the price may further go up.
The property market has been on a low for about four to five years, after a long time it is on an upcycle. The market has a cyclic nature. The real estate market has come out of a slump of 4-5 years, that is why the uptrend is expected to last longer, Madan added.
The question that arises is who are the ones fueling the market? Developers are careful while answering this question. They say around 20% of the market is fueled by investors, while others believe it can be more. A large number of property buyers are end-users. However, no one can stop investors if they want to buy a property. After being subdued for so long, the real estate market is on a bounce now, resulting in investors entering the market. It is difficult to get the ratio between investors and end-users today.