For billions of Indians, Covid-19 has somehow reset the relationship with the real estate. The virus has changed India’s property market outlook in multiple ways. Everyone, right from the companies, homeowners, developers, tenants, property owners to the prospective buyers all are trying to make sense out of this disruption. They all are trying to assess where they will end up on the financial matrix once the virus eases up a bit.
During the time of the pandemic, people are glued to the TV channels, checking on how stocks market being volatile, and how gold prices have tanked leading to the substantial financial losses to the investors. There is high uncertainty in investing in these channels & it turned out to be good news for the real estate.
Investors who have burnt their pockets by investing in equity & the stocks will now start looking up to invest in the real estate properties. Real estate is a hard asset and provides good returns in the long term. According to the Magicbricks Property Buyer Sentiment Survey, out of all the respondents who were surveyed, 67% of buyers are still planning to buy a home post-Covid-19 era. Considering the amount of time the prospective buyers are getting for researching about the property and the developers would also lead to multiple bookings. Smart buyers must have already begun to put their hard-earned money in well-thought-out projects like Charms Castle in Raj Nagar Extension Ghaziabad.
Also, India is a base to a larger population; the demand will always be there owing to the fact- urbanization is happening at a faster rate, and the intent of owning your own home would always be there. There are multifamily or joint families set up in the Indian ecosystem who are considered to be the most resilient from the effects of COVID-19. Hence, in the long run, the residential sector will be going to do well.
The other set of investors who will be going to invest in real estate will be the first time buyers & the end-users. With national policy measures being taken to protect the buyers with crucial interest rates being slashed down, this would come as a perfect opportunity for those people to invest in real estate. As we say, history repeats after a specific time interval; the real estate boom started around 2003-04 with home loan rates being near to 7%. And after a gap of 15 years, the interest rates are once again near to 7-7.5%. Hence, this will surely help the sector to boom after covid-19 times. In fact, many tenants might be harassed by their landlords during the pandemic, which would be made them think to invest their savings acquiring a roof on their heads.
The key factors that would determine property buying will be the price of the project, relaxed terms for down payments and the return on investments. Any attractive deals & discounts could trigger buyers for immediate purchase.All-in-all,the residential segment will keep on getting good business along with the regular flow of investors who by now have realized the importance of investing in real estate assets and also safeguarding their money.