Mr. Vipin Mittal, CEO Projects, Aga Khan Agency for Habitat India
Along with pleasant weather, the arrival of the monsoon also marks the beginning of an appropriate time for buying property. This statement may seem incorrect because of the popular notion that people rarely step out during the rainy season, but this is exactly what makes this season the best for cracking a property deal.
There is certainly a scarcity of buyers during monsoon, the demand is low and business slows down creating a greater scope for negotiation with builders. The builders/dealers are also keen on getting business during this off-season, so they come up with lucrative deals offering a varied range of discounts and benefits. Also, there is enough time to haggle with the seller and get the most profitable deal. When demand is higher, the situation is otherwise putting buyers at the adjusting end.
Another confounding factor, supporting the statement that monsoon is the most favourable time to buy property, is the fact that this is the best time to scrutinize and judge the quality of construction and the condition of the property. During the rainy season, several areas reel under persistent waterlogging, roads get flooded, and drains overflow. Where, monsoon is also a time for buyers to assess the capability of developers. A good developer will ensure that the work continues uninterrupted despite rains by adopting measures like extensive dewatering, temporary sheds to protect the material and freshly laid concrete etc. Firm the extent of construction activity happening on the site, one can draw interferences about the developer seriousness to finish the project in time and in quality. So, prospective buyers can properly evaluate how well the society or area is equipped to deal with one of the most difficult seasons.
By conceiving the thought of buying a property during monsoon, buyers can plan site-visit to potential areas and obtain the exact picture of the quality of construction of the building well in time. Normally structural and constructional defects like seepage, leakages or dampness in walls and ceilings, and water-logging in parking lots are most evident during the rainy season. So, if a site visit is planned at the right time, buyers have enough scope to point out these problems and demand solutions before buying the property.
Another major factor in determining the property’s worth is the condition of the approaching routes and roads in the vicinity, and monsoon is the best time to get the real picture. If the streets are fine during the rainy season, they are likely to remain in the best shape throughout the year. Also, during monsoon, one gets an honest view of the state of affairs around i.e., rampant water clogging on streets, over-flowing gutters, and most importantly, the area’s traffic condition.
This year, there are two other major reasons for the buoyancy — the unchanged repo rate and home loan rates sticking to the historic low as last year. Trends suggest that inflation remains manageable when rainfall is ample and as per the met department, this year the country is expected to receive a normal Monsoon, allowing enough headroom for RBI to keep the policy rate low. And, with most house deals relying on home loans, the lower the loan rate, the higher will be the EMI outflow.
Also, when demand is low, loan offers from banks and other financial companies are in abundance, these financial institutions are also open to discussing and negotiating their interest rates and additional charges during this off-season, placing buyers at the position of advantage.
With an array of factors like these, monsoon certainly qualifies as the most appropriate time for property buying.