As a recent report by The Economic Times indicates, the rental housing market has seen a drastic increase in demand in key urban areas, such as NCR, and the prices of rent continue to gain momentum in the last one year. The report notes that there are various causes of migration to work, lack of ready housing supply, and slow homebuying decisions, which have caused the sustained strain to the prices of rentals, thereby rendering long-term renting costly to family members.
To a large number of households, this increase in rent has brought about a re-evaluation. Homeownership is increasingly becoming a stable and predictable alternative to higher monthly rents, with no long-term payoff, by the buyers. The change is not based on investment agenda but rather on the need to get security, live cost control and stability in the long run.
Homebuyers are reevaluating local housing options in residential corpus such as Greater Noida West where the population has been moving and the demand of rentals has consequently risen. On this larger debate, some of the new forms of development like Prateek Grand Begonia are brought into perspective not by advertising but rather by the overall consideration of whether it is economically viable to own a home in a market with a high percentage of rented properties.
The Evolution Of Buyer Behaviour Because Of Increase In Rents
Unpredictability is one of the major worries of tenants nowadays. The increasing rent annually, inability to negotiate discounts and inability to know whether or not the lease is going to be renewed are stressful especially when the family has kids or the client has a commitment to work. With rents increasing, the disparity between rent and monthly EMI payment in certain locations has decreased and this has forced buyers to consider owning a property earlier than they had planned.
Practical questions of buyers are now:
- Is the increase in rent going to be sustained?
- Is renting economically reasonable when there are long-term ownership of EMIs?
- Is it more stable in terms of lifestyle when you own a home?
The questions are especially pertinent in the developing residential areas where the renting market is high. The residential projects such as Prateek Grand Begonia in such markets are not evaluated based on financial choices such as buying and selling, but a long-term living choice.
Ownership as a Long-Term Long housing strategy
Although renting is flexible, it is usually not very predictable in the long term. Ownership, conversely, offers cost certainty on structuring EMIs, which enables households to plan finances in the long run with better plans.
The customers are not this time leaping into buying, but rather they are scrutinizing the long-term effects of renting and buying. When evaluating residential properties like Prateek Grand Begonia, customers usually take into account the behaviour of the local rental market and the sustainability of the demand and the ownership potential to save them in the future inflation caused by rental increases.
It is not as much concerned with present time benefits but with providing a stable living situation. Rental pressures are on the increase in a market and it is vital to have the knowledge on such dynamics in the market. As a homebuyer, being aware of the trends in renting will assist them to make a sound decision; one that is flexible now and secure enough in the near future. Planned ownership can bring a sense of tranquility to the ever-insecure rental market.
