Utkal Builders

Renting vs Buying: A Leader's Perspective on Making the Right Choice

As the debate around renting versus buying continues, it’s important to step back and take a holistic view. Today’s fast-paced lifestyle, coupled with economic fluctuations, has shifted the way we think about property ownership. The decision is no longer just financial—it’s deeply personal, influenced by aspirations, stability, and, ultimately, one’s long-term vision.

Owning a home has always been a milestone for many, often seen as a symbol of stability and security. The fact is, you can rent a house, but you can’t rent a home.

Over the last 2 decades, real estate has only appreciated exponentially and the figures prove that. However, we often look back at this in hindsight and regret not having decided earlier. Remember that buying an asset will always be a wise decision financially. Because when you pay rent, what you’re essentially doing is paying someone else’s mortgage. Home Loan rates are available to most people now at very economical rates, at 8-9% plus you get a rebate in taxes too. I promise you, one day, your children will thank you for investing in a long-term asset like a home!

However, beyond sentiment, other compelling factors—market trends, appreciation rates, and government policies—shape this decision. With real estate appreciation rates increasing by around 8-10% annually in cities like Bhubaneswar, the long-term value of owning property cannot be overlooked​.

Understanding the Numbers and Trends

Data speaks volumes. For instance, in markets like Bengaluru and Pune, rents have surged more than property prices. A recent analysis by ANAROCK Research reveals that in Bengaluru, Sarjapur Road witnessed a staggering 67% increase in average monthly rentals, compared to a 54% rise in capital values. Similarly, Pune’s Hinjewadi saw rental values climb by 52%, whereas capital values rose just 31% This suggests that while renting might seem convenient, the increasing costs could eventually rival the expenses of owning a home. Conversely, cities like Delhi-NCR, Hyderabad and Mumbai have seen stronger capital appreciation, making homeownership more lucrative for those eyeing long-term gains. According to the report, Sohna Road in NCR saw rental values increase by 40% while capital values jumped 54%. In Hyderabad’s HITECH City, rental growth was 46%, but capital appreciation reached 59%.

Flexibility vs Ownership

Today, renting has become a more attractive proposition for younger audiences for several reasons. Moveable jobs and migration to bigger cities give a sense of un-rootedness and freedom. Another quotient is late marriages, lower family commitment, nuclear family structure, and awareness of more investment asset classes like mutual funds, gold, or equity.

I would say, the sense of stability that comes from homeownership is invaluable, especially for families. A home provides roots—a place to raise families, create memories, and grow. More practically, owning property gives you the option to rent it out, turning it into a source of passive income. In addition, property can act as collateral, opening doors for credit opportunities that may not be available to renters.

The Bhubaneswar Perspective

Bhubaneswar, in particular, presents an interesting case. Once considered a cost-effective alternative to metro cities, it has now emerged as a hotspot for real estate investment, thanks to infrastructural projects, urbanization, and the entry of global players. Investors are increasingly drawn to this market due to its growth potential. Residential real estate prices in the city have appreciated by about 20-25% over the past five years.

For first-time homebuyers, now is an opportune moment to make the leap, as the market is still growing. The city’s transformation from a quiet capital to a burgeoning real estate hub means that early investments could yield significant returns over time.

Conclusion

In my view, the 30s are the best time to buy a house, because your finances are settled and you are ready for commitment. A house is an asset not just an investment. Capital appreciation has to be factored in here. (If you have bought at 4000 per sq ft, when you sell it may have grown to 9000 per sq ft!) Blended, the return is 15-16% plus you get ‘social security’ and comfort that is invaluable!

Renting offers freedom, but buying a home represents a deeper, more lasting investment. It gives you social security plus capital creation, you have equity in an appreciating asset. So do try and buy a house, no matter what the size is.

At Utkal Builders, our approach to real estate has always been centred around the idea that a home is where you create your future, both emotionally and financially. We’ve witnessed how real estate trends shape people’s decisions, and we strive to create homes that aren’t just investments but spaces where people can build lives, memories, and a sense of community. While renting may suit a temporary phase of life, owning a home remains one of the most meaningful and rewarding decisions you can make for your future.

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