- Education And Career
- Companies & Markets
- Gadgets & Technology
- After Hours
- Banking & Finance
- Energy & Infra
- Case Study
- Web Exclusive
- Property Review
- Digital India
- Work Life Balance
- Test category by sumit
‘Real Estate Today 30-40% Cheaper Compared To What It’s Going To Be In Next 3 Years’
Silverline Group Chairman says real estate prices are going to rise steeply over the next few years and advises to buy right now when the prices are cheaper
Photo Credit :
Silverline Group Chairman and MD Farook Mahmood on Friday advised everyone to buy real estate right now as the prices are going to increase by 30 to 40 per cent in the next few of years.
Speaking at a Realty+ event, Mahmood said that right now is the right time to buy real estate because of the leftover inventory from the last two years. He believes buying real estate presently would mean acquiring it at a throwaway price.
He pointed to the fact that new launches in the real estate segment today are usually 25-30 per cent sold out on the very day of the launch. “People are wanting to buy property and they are wanting to get a piece of the action,” Mahmood emphasised.
He added that availability of home loans was a critical factor in making this happen.
The Silverline Chairman said everyone is interested in buying a property currently. “At one point of time, people were saying millennials are not interested in buying property. But I think today, the trend has changed. Not just the millennials, but everybody is wanting to buy property today,” he said.
Also present at the event, Ashwinder Singh, Chief Executive Officer, Residential -- Bhartiya Urban and Bestselling Author, said that he has seen buyers showing signs of FOMO (Fear of Missing Out) for the very first time.
“If there's a product which is getting launched by a good developer, it doesn't matter whether he is big, medium, or small, people don't want to lose out on the opportunity,” he said.
He said one of the key indicators of positivity in the sector is rental yield which is at 4-5 per cent. “People keep talking about rising interest rates and the rising interest rates having an impact on EMIs, but the beauty is that the rising rental for the first time is more than the rising EMI,” Singh added.
This means that for anybody who's staying on rent, the increase in the rent is far more than the increase the EMI.
“Look at the six-month rate of increase of 2 per cent of repo rate that has happened, where your EMIs would've gone up by 10 per cent. This means that capital values are going up and investors are back.
Singh said he was optimistic about sustainable and consistent growth of demand in the next three to four years.
Weighing in on the topic, Sumadhura Infracon Private limited CMD Madhusudhan G said domestic dividend, consumption and resilience of Indian real estate sector has demonstrated that the country’s growth story is intact.
“Everyone is talking about India and looking at us,” he said.
Madhusudhan said that even the rising interest rates are unlikely to prominently impact consumption in India in the residential and commercial segments of real estate.