No industry in the world has remained untouched with the reeling impact of Covid-19 pandemic. Real Estate is no different. Both the commercial as well as residential market are expected to hit a new low during the lockdown phase. Various opinions are being tabled about how it will evolve in the near future. Market experts suggest the silver lining lies ahead as the government has announced several measures to revive the sector.
As per the report of ANAROCK research, the total unsold stock of ready to move-in homes is around 6.44 lakh units in top seven cities, with NCR alone, stands at 15,600 unsold available units. It can be a perfect time for home-buyers as they are in a position to crack good deals on ready-to-move-in options. They are likely to benefit from the low- interest rates on home loans as well.
Here are a few encouraging trends that have emerged during Covid-19 times in the real estate sector:
Over 34% of Buyers now prefer RTM homes
With Covid-19 spreading like wildfire, construction activity was halted across the country, leading to delays by several months. The survey suggests that as many as 34% prefer ready to move-in from an investment perspective.
Buyers prefer for developers with the least execution risk
Buyers, these days, prefer risk- free investments. Now, 62% of buyers demand developers with least execution risk is high even though the property is slightly over-priced. Thus developers with a good track record will be the primary beneficiaries of this change.
Homeownership is the new priority.
Post Covid-19, the thinking of the buyers has somewhat changed. Home-ownership has been gaining significant preference among the millennial. As per the survey, more than 50% voted for the real estate as the best asset class for investment.
NRI Investment in Real Estate is on boom amid Covid19
Coronavirus has been considered as one of the greatest economic slowdowns of all times. Investment opportunities in USA & European markets have poorly hit due to pandemic, though this has upped the games for the Indian real estate market. Also, the falling value of Indian Rupee against the US & the dismal returns on other investments channels like gold & FD’s has fueled this trend. This made the NRI’s to invest their disposable income in RTM homes. The research suggests that almost 2/3rd people voted in favour of a decrease in property prices as well as hoping to get lucrative deals during & post lockdown.
Demand for affordable homes hasn’t dented due to Covid19
It was highly anticipated that the demand for affordable housing segment would go down due to Covid19. However, this may not be the case. Majority of the buyers wanted to invest in physical assets owing to the sense of security that these provide during such exigencies coupled with lower home loan interest rates.
Owing to the ever-increasing residential demand, Charms India, a reputed developer with a legacy of developing homes of more than 20 years is running a scheme to target the affordable housing customers. Now, one can reserve their unit in 0% Booking Amount with Zero deduction upon cancellation being available till lockdown.
(Based on ANAROCK Consumer Sentiment Survey & Financial Express report)