Home Purchase Versus Rent: For Long-Term End Users, Market Timing Not Crucial

Recent data from Anarock Group indicates that capital values in key micro-markets of India's top seven cities rose more sharply than rental values between 2021-end and 2024-end.

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However, for end users, the decision to buy or rent should be based on considerations that extend beyond market trends.

Build equity, enjoy appreciation
Purchasing a house provides a tangible asset that appreciates over time. "Equity building and property appreciation lead to long-term financial stability," says Santhosh Kumar, vice chairman, Anarock Group. Homeownership offers security. "Homeowners are able to avoid uncertainties like rent hikes or lease terminations," says Vivek Rathi, national director, research, Knight Frank India.

Buyers also benefit from tax deductions. "Home loan borrowers get deductions under Sections 80C and 24(b) of the Income-Tax Act (under the old regime),". says Rathi.

A house can also serve as an instrument for legacy planning. "Besides providing shelter to the buyer, it paves the way for the creation and transfer of wealth to the next generation," says Chakri Lokapriya, chief investment officer (CIO), equities, LGT Wealth India.

High upfront costs