Real estate has been down during the pandemic period. It bounced back as the fear of disease subsided. The ease of restrictions, reduced interest rates by the Reserve Bank of India to boost the sector, and exclusive deals from the property developers acted in favor of the sector.
Construction and development have recently begun to boom, and the real estate industry has regained its lost luster.Nonetheless, another disturbing factor is gripping the sector now. Over the past few months, the cost of raw materials has increased alarmingly. Earlier, the price changes happened annually or biannually. Nowadays, the prices of cement, steel bar, sand, and other commodities fluctuate on a monthly basis.construction costs, reservation and pricing benefits in real estate will provide social security.
Consequently, the average cost of construction has increased by around 12%. Imagine the impact it could have on the total price of the property. Increased constraints in the production lines and heavy workload, owing to high demand, are observed to be the reasons for the rise in price.
This surge in cost may derail the dreams of many homebuyers. They might require a loan amount beyond their capacity. Even though the banks may approve such a large amount, taking a loan beyond capacity may prove detrimental to the individual.
How to Overcome the Pricing Concerns?
It is truly a tough time for homebuyers. The rising costs have created a buzz among the customers. Many of them dropped the plan of buying a house. Others are anxious about how to deal with this issue.
A few tips, which can help save money while buying a home are:
- Buying a property or residential space during the pre-launch phase
- Reserving an apartment or villa when the project is announced
- Buying a home as one of the first buyers
- Checking out offers and deals from prominent real estate developers
Benefits of Buying Property in New Projects
Rising construction costs, reservation and pricing benefits in real estate will bring you a profit. Booking or buying a flat, apartment, or villa in a newly launched development project is the most effective way to save money. The only thing you must ensure is that the property developer is a trusted one, like OMG Properties, with successful apartments and villa projects in Kerala. . You can check their previous projects, the opinions of existing customers, and overall performance to confirm how reliable a real estate developer is.
Property developers would announce the best deals and discounts during the pre-launch announcement in an attempt to get the maximum number of buyers who would support the project during development. Undoubtedly, this is a cost-effective, as well as affordable, option.
The benefits of booking a newly launched project are:
- Deals and Discounts
It would get you exclusive deals and discounts. Making the buy more profitable than constructing one for self. The developer would be taking only a minimum profit during the initial booking for a specific number of clients. Once they reach that many buyers, the price of the home will go up.
- Customize the Home Optimally
Most real estate developers provide the possibility of customization, within the specified dimensions. Booking a pre-launch property will help you design the home the way you want. The talented architects and interior designers from the firm will help you in this regard.
- Make More Profit
Booking a newly announced property is the best investment as well. In all probability, once a project comes up at a specific spot, the surroundings will also develop. In turn, the property rates will go up. With this, you can earn much more profit than in a normal scenario.
- A Phenomenal Reduction in Price
Property developers use the initial bookings as a promotion tactic aside from providing funding for the construction. To ensure that they get the maximum number of buyers, they keep the cost reduced during this phase. As a result, you will be getting the property about 500-1000 sq ft lower than the final price, offered to others.
You must start looking for project launch announcements to get the property at the best price.
How to Identify the Right Real Estate Developer?
Stories of deception by property developers have cast a dark shadow over the real estate industry. As in any sector, this field also has a few unreliable firms. You must confirm the trustworthiness of the firm prior to investing money. Choosing the right real estate developer is also important to deal with rising construction costs as well as reservation and pricing benefits in real estate.
Use the following tips to check out the top builders and confirm their reliability:
- Examine the track record and confirm whether they have been delivering projects on time or not.
- Reading online reviews might offer some insight into them.
- Enquire from the existing customers regarding the workmanship, pricing, quality of construction, commitment, and consistency of the company.
- Visit a couple of projects by the developer.
What matters most is the trust gained by the real estate developer over the years. It would reflect how efficient and true to their words the firm is. Once you are clear about the entity, you can consider booking a property during the pre-launch phase itself. It would be much less expensive and would significantly reduce your exposure to rising construction costs.