Avg. Cost Of Buying A Home In India: Be Practical, Rent!

Owning a home is a crucial aspiration of many individuals. Before you purchase your first or second home, you must analyse if you are buying it at the right price. 

“Owning a home is a keystone of wealth, both financial affluence and emotional security” – Suze Orman. 

Buying a house in Delhi or any other city doesn't mean one needs to block the first property that pleases the eyes. Instead, purchasing the house must entail looking for a suitable property, analysing the necessary features, arranging the money for the down payment, and then finalising the deal. 

Here are a few things to consider when checking the average house price in India. 

What is the Exact Cost of Buying a House in India? 

Studies reveal that the real estate market will grow from ₹12,000 crore to ₹65,000 crore by 2040. If one is looking to buy a home in Bengaluru, they have to pay around ₹7,595 per sq feet compared to ₹9,232 per sq feet and ₹7,363 per sq ft in Hyderabad and Delhi, respectively. 

As a home seeker, it is crucial to inquire about the cost of the property before proceeding. Below are a few simple ways to analyse the average house price in India.

Memorandum of Deposit of the Title Deed (MODT) 

Apart from the down payment, the home buyer must save the MODT charges between 0.1–0.5% of the house price in India. During the sale deed registration, one must pay the stamp duty and registration fees. These charges will entirely depend on amenities, location, property age, size, etc. The stamp duty in Kolkata and Ahmedabad is 1.1% and 4.9%, respectively. 

Brokerage Charges 

This applies to homeowners who hire a registered broker to find the property. The charges should be analysed thoroughly beforehand. It ensures against any surprises or changes in price at the end. The brokerage charge in Tamil Nadu is 7%, whereas it ranges between 4-7% if one is looking to buy a home in Maharashtra. 

Overhead Charges 

There are certain overhead charges that a homeowner needs to consider after they move into the property. These expenses include woodwork, piped gas connection, waterproofing expenses, carpentry charges, interior decoration charges, and much more. 

Considering the above factors will help the home seeker buy the best houses for sale in Mumbai, Delhi, or any other city. In 2022, the average house price in Delhi rose by 11%, while it rose by 6% in Kolkata. 

Factors Affecting the Cost of Buying a Home in India

The total cost of buying a home depends on various factors, including the actual property price, maintenance cost, location, and more. Here is a breakdown of what determines the house price in India. 

Location 

Among all the other factors, location is the most crucial aspect that influences house pricing. For instance, a house in Mumbai costs around 2.6 times the cost in Delhi. This means if a 1BHK flat with a 500-square-foot carpet area costs ₹30 lakhs in Delhi, a similar property in Mumbai may cost ₹78 lakhs. 

Size and Amenities 

The next important factor determining the house price in India is the size and amenities of the property. For instance, a 4 BHK property will usually be more expensive than a 2 BHK. Likewise, a property with more amenities tends to have a high value.

Age and Condition of the Property

Age and condition of the property can also make or break the value of the whole property. A house made a few years ago is much more valuable than one built 15–20 years ago. This is because the condition of the roof, plumbing, electrical, appliances, etc., worsens over time.

Buying a property can be the toughest and most overwhelming call as plenty of factors must be considered. Once homebuyers know what they need to look for, they can be assured that they'll find the most suitable property for themselves. For instance, while buying a home in Ahmedabad would cost ₹5,721 per sq foot, it would cost ₹6,245 per sq foot in Kolkata. 

The number of middle-class individuals willing to buy a second house in India has increased. This high number proves that many people seek to invest in real estate in India. 

This quote by Marshall Field seems to resonate with many Indians: “Buying real estate is not only the best way, the quickest way, the safest way, and the only way to become wealthy.” 

The Bottom Line

While picking a home, it is crucial to check if the builder company is reliable and trustworthy. The home's location is also important as it helps ease future transportation costs. 

The overall condition impacts the future resale value of the property. A thorough property analysis will assist every homebuyer in getting their hands on the best house price in India.  

Before buying a property that meets your lifestyle and requirements, it's crucial to analyse if the property suits your pocket.

We hope this article will help the home buyers finalise their new homes. Let us know if you loved the article, and drop a comment on how the article assisted you in finalising your dream home.