The effect of the pandemic in the Indian real estate sector was indeed unignorable. The highest employment generating sector in India just after agriculture, the real estate industry was predicted to experience a crumbling effect in the year 2020 as the country went under strict lockdown due to the COVID-19 virus threat. It did impact the progress of the ongoing projects that required the highest human intervention than any other sector and significantly lowered the projects’ valuation. However, the Covid-19 came with a certain silver lining for the industry as well. The lowered valuation combined with RBI’s interest slash on the home loans made the year 2020 saw a strong rise in real estate sales. According to CBRE data, housing sales in the July-September 2020 quarter increased by a strong 86% quarterly. November 2020 recorded the highest number of residential registrations in Maharashtra in almost a decade.
However, proceeding further, the post covid era is expected to bring in some new challenges of the industry as well. The only way to survive these challenges is to be ready for the market demands. In today’s post, we will check out what can be the possible outlook for the real estate industry in the coming days.
OUTLOOK FOR THE REAL ESTATE INDUSTRY IN INDIA
Demand for affordable housing- The pandemic has proved the importance of owning a home more than ever before. It is expected that budget homes and mid-level homes are going to see a sharp rise in sales as the country recovers from the pandemic. The real estate developers are reporting that there are increased enquiries about the budget and mid-level properties and they are expecting good sales this year especially during the festivals.
Demand a better and healthy lifestyle– Life is more than just living in four walls. And this has been shown to us with fingers in the eyes by the coronavirus outbreak around the world. The people are now demanding the inside of the four walls and the life out of it. The properties that come with jogging tracks, open gardens, vegetable gardens are likely to be in demand for high-value properties. Simultaneously, the demand for plots is likely to grow in the coming days.
The demand for properties in 2 and 3-tier cities to go high- The emergence of the remote culture has triggered a reverse migration in the country which in turn has increased the demand for property in 2-tier and 3-tier cities. These cities are likely to see a continuous influx in the coming years and real estate demand is expected to rise in these areas more and more.
Ready homes will continue to be in demand– Just like any other time, the demand for ready homes will always be high, especially in Mumbai and adjoining cities where the rent amount is on the very higher side. The cut in GST rate for the residential properties has bridged the taxation gap between an under-construction and completed project which in turn increased the demand of the ready properties.
The low-interest rate in home loans and the reduction of stamp duty cost is expected to play a key role in the revival of the real estate industry in the coming days.
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