Top Cities with a Steadily Increasing Housing Market
As the Covid-19 pandemic took the world by storm, there were major economic changes, and the real estate market was not an exception. Due to the reduction of property prices during mid-2020, several homebuyers made the most of the opportunity by investing in real estate. Ahead, we have enlisted the top cities with a steadily increasing housing market rate. Purchasing a property in any of these cities can help you gain satisfactory price appreciation over the next 6 to 10 years.
Mumbai Metropolitan Region (MMR)
The property prices in MMR have skyrocketed over the last decade. According to ANAROCK Research, the average property price in Mumbai Metropolitan Region (MMR) towards the end of 2020 was around Rs 10,610 per sq. ft. One of the major reasons of the increasing housing market in MMR is the ongoing infrastructure projects such as metro links, Mumbai Trans Harbour Link, etc.
Despite the Covid-19 pandemic, MMR’s housing market remained active in 2020. The limited-time stamp duty cut and attractive home loan interest rates by various lenders have contributed to MMR’s increasing popularity amongst investors.
Pune is one of the most liveable cities in India. This city is a perfect mix of IT, manufacturing, and services industries, and hence, it attracts people from various parts of the country. Furthermore, the property prices in Pune are considerably more affordable as opposed to its neighbouring city Mumbai.
Between the year 2013 and 2020, Pune has witnessed a massive rise of 38% in average property prices. According to ANAROCK Research, Pune’s average property prices increased from Rs 3,980 per sq. ft. in 2013. to Rs 5,510 per sq. ft. in the year 2020.
Bengaluru’s housing market withstood the pandemic lockdown period far better than other major cities. This is because the property sales in Bengaluru did quite well during the lockdown. The city offers high-quality affordable houses with adequate amenities.
Furthermore, being the leading IT hub of the country, Bengaluru has become an evergreen investment destination for homebuyers. The unsold housing market stock of Bengaluru declined by an enormous 51% in 2020 as against 2016 – from 1.21 lakh units in the year 2016 to nearly 59,330 units as of 2020-end. As per ANAROCK Research, the average property prices in Bengaluru currently stand at Rs 4,955 per sq. ft. Thus, making it one of the most affordable metropolises in the country.
With a fair understanding of property prices in the above-mentioned cities, you will be in a better position to invest in real market based on your preferred location. To finance your property purchase, you can consider availing a home loan with a reputed lender. It’s possible to avail a loan amount up to 75-80% of the property’s value. However, if your financial capacity permits, it’s advisable to make a larger down-payment and borrow a lesser amount. This will reduce the repayment burden in the long run. You can consider utilizing your savings and investments to make a higher down payment while purchasing a property.