In recent years, Budget Home buyers in real estate have been seen adapting to changing homebuyer preferences in order to accommodate new market realities. The reason for this is that actual buyers’ mindsets have shifted toward more living space and a better lifestyle while staying within their budgets. More and more people are flocking to big cities because of job opportunities, which require affordable housing.
With the ongoing pandemic and the ongoing work-from-home scenario, the homeownership sentiment among prospective buyers is very visible. A thriving housing market has resulted in budget homes that provide space, affordability, and convenience.
First-time home buyers, fence-sitters, and millennials are all taking the plunge to own a place of their own. India’s changing social structure has been another factor causing demand for budget space in work cities.
With the migration of nuclear families and the working population, there is a high demand for budgeted 1 and 2 BHK apartments, to which the real estate sector is responding with increased availability. With the current housing market, millennials are increasingly looking to invest in homes over rentals in 2021-22.
The affordability, low-interest rates, discount programs, and ease of purchasing Budget Homes make homeownership desirable for many buyers. The government continued its slew of relaxation measures in 2021 as well. Other factors that have favored the budget home segment include the RBI’s infusion of Rs 3.74 lakh crore liquidity and the Apex Bank’s accommodating stance, which has kept the Repo Rate at 4 percent for the sixth consecutive time, lowering home loan interest rates to sub-7 percent. Due to these factors, sentiment has improved substantially, and low-cost housing demand has increased dramatically. Indian real estate developers are increasingly focused on low-cost housing as it may become the next growth driver.
This segment has given buyers the opportunity to own a home within their budget, resulting in sustained home sales. Many developers now provide homes with smaller ticket sizes due to the increased demand for low-cost housing.
All of the new launches in 2021 have given a boost to budget housing by increasing the inventory of smaller 1, 2 BHK apartments in all of the newer micro-markets, which are attracting the working class. So, what makes these residential projects with low-cost homes so popular with buyers? An excellent location, ready social infrastructure, and enhanced connectivity are within close reach of the development.
At the moment, buyer sentiment toward homeownership is driving sales momentum. Various benefits are available to buyers in order to achieve Housing for All, such as tax breaks and interest subsidies.