Reasons to invest in a post-COVID Real Estate sector
India's real estate sector has witnessed some of the major roadblocks in the recent past; the pandemic helped the sector grow significantly. The post-lockdown queries for new and affordable housing have increased immensely because of the new normal, the work-from-home guidelines, low rate of interest, stamp duty exemption, and higher disposable income. All of it makes 2020 the most opportune time to invest in real estate.
Real Estate Before Nationwide Lockdown
The real estate sector at the beginning of 2020 was heavily struggling. During this time, the cases of insolvencies surpassed new projects, highlighting many developers’ inadequateness for the buyers. This increased the number of incomplete projects and damaged the funding crisis even more. Furthermore, RBI’s sequential rate cuts could not help the borrowers due to the large non-performing assets (NPAs). On the other hand, demand for office leasing saw a growth of 30% in 2019. Both logistics and commercial real estate performed better than residential real estate in 2019. It was believed that the subdued investment and consumption would show a ripple effect in the year 2020 with the help of economic interventions to revive the sliding growth curve.
Advancements in the Sector
The consolidated pandemic effect on the economy was challenging, but the need for home possession has prompted a developing interest in affordable ready-to-move-in units. As opposed to pre-COVID times, realtors at present have a blinkered vision of finishing their current ventures and selling out the prepared units. Along these lines, there couldn't have been an opportune time in the real estate sector where the demand and supply fit so well.
The utilization of technology has improved the real estate market (REM), helping organizations to make smarter choices. It has made it significantly simpler to oversee complex work processes and coordinate data. Advanced development has progressively re-imagined the boundaries of construction. Rather than blocks and cement, it utilizes information to control and oversee building completions through BIM, Artificial Intelligence (AI), cloud computing, reality modeling, and so forth.
Reasons to Invest in Real Estate in 2020
Here's why investing in real estate in a post-COVID time could be beneficial for you:
Among the top challenges that realtors are facing currently are conflicting deals prompting enormous stock heap up, decreasing incomes, and cost overheads. To handle them, today, real estate developers are introducing incentive measures and offers to attract home buyers. Some of them incorporate cashback plans, more agreeable EMIs on loans, refundable booking amounts, alluring value propositions, and many plans that fit the buyers’ preferences.
Costs of private properties have generally stood still for the last 5-6 years across India, making them within the home buyers’ spending capacity. The current economic crisis has made it favourable for home buying as the home credit financing costs are at a record-breaking low. A deduction in home loan financing costs post-COVID has gotten a significant trigger for end-clients to purchase a home. Along the lines, RBI has reported a decrease in the REPO rate, which makes home loans even more affordable for those aspiring to buy a new abode.
One of the fascinating advancements has been the pattern of shoppers presently considering ready-to-move-in (RTMI) properties as an exemplary option. What makes this a practical choice is the low rate of interest with no GST complication.
Consumer Behavior
In accordance with the general monetary sentiment, the consumers have decreased their budgets in many metro cities; however, they do not wish to compromise on the size of the house and are moving towards the outskirts for better options like better amenities and peace. This pattern means that recent 'work-from-home' guidelines have raised a need for extra space in the houses to make the lifestyle more convenient.
Combining all these components shows how the real estate sector of 2020 is favourable for property purchasing. With new technological advancements utilized in the sector, the general cycle of searching and purchasing the right property has improved for buyers, making the process simpler and more helpful.