MOVING SOUTH

SPIKING HOME PRICES AND RISING INTEREST RATES ARE PUTTING OFF BUYERS, SENDING REAL ESTATE DEMAND ON A DOWNWARD CURVE

- ARNAB DUTTA

HOMEBUYERS NEVER HAD it as good as they did in 2021, after the second wave of the Covid-19 pandemic ended. Forced to say indoors during the lockdowns, they flocked to the residential market in droves, many looking to buy larger homes—a result of prolonged periods of working from home.

There were also other factors that enticed homebuyers since late 2021, such as some of the lowest home loan interest rates in recent times and government sops like registration fee waivers and stamp duty cuts. Additionally, as the market was recovering from a prolonged depression, home prices had remained stable—encouraging buyers to invest.

Take Vinay Sharma, for instance. The IT professional used to reside in Gurugram, in a 2BHK rented apartment with his family. Since the pandemic led to him working from home, he chose to buy a 3BHK apartment in Noida. Apart from the lucrative interest rate, the work-from-home flexibility allowed him to choose Noida over costlier Gurugram, where his office is. Sharma was not just happy to have bought his dream home, he was even more delighted that his EMI outgo was just 35 per cent higher than the rent he paid earlier.