Buying a house is likely to become very difficult in the years to come. It is attributed to the fact that the prices of properties are likely to increase in the country. At the same time, the affordability of the intending home buyers is likely to decrease, making the dream of owning a roof over their heads more burdensome, according to an analysis from Reuters Property.
As of late, the RBI has finally kept the repo rate at 6.5. But with a stable economy and strong demand for housing units, the indigenous property market continued its rally rather strongly. However, it is predicted that the average price of housing units will increase by at least 7% this year.
During the pandemic situation, the prices of housing units have gone up by 50%. Many opined that prices would go down once the pandemic situation eased. They predicted that the prices would remain neutral or decrease.
However, the demand for houses has increased after the pandemic situation. With the increase in demand, the prices have also increased. Because of this phenomenon, the property analysts felt that buying property would be a difficult proposition.
It is attributed to the strong economy of the country, positive market sentiment, the prevalence of higher GDP, fiscal diversity, and the regulation of inflation.
Moreover, the availability of affordable houses on the market has become harder.
Moreover, the demand-supply mismatch in the country is a cause for great concern, Reuters Property said.
It predicted that the affordability of first-time home buyers would decrease further. The rents on the houses are also likely to increase further, they said.
