5 reasons to buy a home during Akshaya Tritiya

This Akshaya Tritiya, it may make better sense to buy real estate, instead of other assets. Here are the reasons why

As Akshaya Tritiya is considered an auspicious time to invest in property, every year, prospective home buyers hope to finalise their purchase during this period and also look for lucrative offers to sweeten the deal.

Over the past two to three years, property prices in most places have not increased and in certain cases, they have even gone down. Consequently, home buyers today, can get houses for a lesser amount, as compared to those who purchased around four years back, by around 30%-40%, adjusting for the interest paid on the investment. Moreover, the property market is now relatively stable, with a favourable risk-reward ratio.

“Festivals and auspicious days have always been preferred for making important purchase decisions. Most home buyers wait for such favourable days like Akshaya Tritiya, to invest or buy their dream home. Several developers give out exclusive offers and flexible payment plans during this period, which makes this occasion even better, especially if you are an aspiring home buyer. Overall, it is not only the festive spirit but also the market momentum that is poised to be in favour of the home buyers,” says Prashin Jhobalia, vice-president – marketing, House of Hiranandani.

A matter of timing

Investing in real estate at this point of time makes sense, as the market is positive due to recent policy changes such as the cuts in GST rates and repo rates. Home loans have become cheaper, as a few banks have passed on the benefits of lower interest rate to the buyers. “Policy initiatives, like RERA and GST  over the last few years, have boosted sentiments of the buyers which is a positive sign for us. On the whole, it looks like Akshaya Tritiya, might overshadow the slowdown in the property market. Buyers who have been holding on to their plans, might change their decision and go ahead with their decision to buy a home on this auspicious occasion,” says Avneesh Sood, director, EROS Group.

See also: The 3-step guide to buying a home during Akshaya Tritiya

5 reasons to buy a home during Akshaya Tritiya, over other asset classes

Experts point out several reasons to justify why it makes sense to opt for real estate over other asset classes:

  1. Property prices are at their lowest point. Moreover, the market is less volatile now and prices are bound to increase gradually but steadily.
  2. It is easy to mortgage property and generate liquidity immediately, in times of need.
  3. Real estate can generate steady income, in the form of rent.
  4. Investing in property also has several income tax benefits.
  5. Gold, shares and other similar investment assets, are actually more volatile in terms of their market prices, in comparison to realty.

Cities that are attractive for property investment during this Akshaya Tritiya

Buyers should explore options, based on the size of their investment, expected returns and risk capacity. Big cities and metropolitan regions, require large investment and the returns are relatively lower, in comparison to emerging cities, where the investment corpus required is low and the returns are relatively higher.

The most attractive cities for investment in property during this period, are Mumbai’s peripheral areas, Pune, NCR, Vadodara, Jaipur and all the emerging locations where large projects, such as the Delhi-Mumbai Industrial Corridor (DMIC), are making a big impact. These cities are also attractive, because of the faster uptake of commercial real estate in these markets. This gives clear signs for firming up of demand for residential real estate, which typically lags the commercial segment by around one to two years.