Middle-class individuals can leverage PM Awas Yojana to buy their dream home, says Gaurav Mavi of BOP Group

Before buying a home, understanding the debt ratio is crucial. It helps prospective buyers gauge their financial capacity to manage both home loan equated monthly instalments (EMIs) and living expenses. Gaurav Mavi, Co-founder of BOP Group, talks to Navneet Dubey of BT Money Today about the growing real estate market in the Delhi-NCR region and how homebuyers can leverage the Pradhan Mantri Awas Yojana for their real estate purchase. Edited excerpts:

BT: How much has the real estate market grown in the NCR region? 

GM: The real estate market in the NCR region has witnessed a substantial upswing, recording an impressive surge of 40-60% in the fiscal years 2021-23. A tangible example of this growth is Gaur Island by Gaurs Group, initially launched at Rs 7,000 per sq ft in May 2021. As of December 2023, the property’s value has soared to Rs 12,000-13,000 per sq ft, reflecting the dynamic and flourishing market conditions in Noida, Delhi, and the surrounding NCR region. 

BT: What are the reasons for this rise? 

GM: Several factors have contributed to the remarkable growth in the NCR real estate market. Post the Covid era, there has been a paradigm shift in mindset, with people prioritising larger homes. Additionally, increasing employment opportunities and burgeoning educational awareness in the NCR region have spurred demand for residential properties. The development of high-quality infrastructure, particularly in Tier 2 and 3 cities, has empowered individuals with greater financial freedom, prompting increased investments in real estate. 

BT: Are properties being overpriced? 

GM: Contrary to the perception of overpricing, the increased demand for suitable properties coupled with rising labour and raw material costs necessitates adjustments in pricing. This isn’t a case of overpricing; it reflects the industry’s need to cover escalating costs while catering to the high demand for quality housing. 

BT: How can a middle class buy a home in the NCR region now? 

GM: Middle-class individuals can still navigate the real estate market by exploring government-backed schemes like Pradhan Mantri Awas Yojana, which can be ideal. Also, opting for joint ventures or group purchases and leveraging home loan facilities by leading banks can be a resolution. This, coupled with careful financial planning, makes home ownership in the NCR region accessible to the middle class. 

BT: Can you elaborate on the definition of an affordable house? 

GM: In the current scenario, the definition of an affordable house varies based on location and amenities. In our case, an affordable house would typically fall between Rs 40 lakh to Rs 60 lakh. 

BT: What strategies should a buyer consider when buying a home? 

GM: Buyers should prioritise location, evaluate future infrastructure developments, consider resale value, and thoroughly assess builder reputation. Additionally, staying informed about government policies and engaging with reliable real estate professionals are critical strategies. 

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BT: While home loans are easily available, debt ratio will increase while purchasing their home. Why should they know if they can afford to pay rent? 

GM: Understanding the debt ratio is crucial, as it helps prospective buyers gauge their financial capacity to manage both home loan EMIs and living expenses. This awareness ensures that individuals don’t overextend financially and can comfortably meet their obligations. 

BT: How do you see real estate market behaving in 2024? Will there be more demand and less supply? Or will people easily get homes at a desired price? 

GM: While predicting market fluctuations is intricate, the foreseeable future remains promising. Factors such as the inauguration of the Noida airport in 2024 are expected to drive increased demand for properties, fostering growth in the real estate market, particularly in the Noida and Greater Noida regions. 

The Noida airport development will trigger heightened demand, increasing rents and spurring economic activities. The influx of industries, food parks, and complexes will contribute to a lifestyle upliftment, fostering substantial growth in the region. This optimistic outlook positions 2024 as a year of dynamic opportunities and growth for the real estate sector. 

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