By ShaSastrinkar , Joint Managing Director, Sterling Developers
The pandemic has impacted multiple sectors in the economy, but the real estate sector has been among the few that has exhibited resilience and is on the road to a healthy recovery. As per a recent report, prospective homebuyers want to make the most of the ‘great time to buy a house’ and nearly90% of them are expected to purchase a home soon. This positive demand emphasizes the strength of real estate in the wake of the pandemic. Moreover, housing sales across major Indian cities have witnessed a big jump during the July-September period on the back of low mortgage rates, hiring in IT/ITeS and financial 2sectors, improved job security, record-low home loan interest rates and growing home ownership sentiment. The overall economic revival will ensure that 2021 will end on an optimistic note for real estate. The appetite for residential property in the mid-income segment is growing, with people looking to buy homes sooner than they had anticipated given the current scenario with the pandemic. In the context of this change in mood, it is important to grasp the new realities in the real estate sector.
Lower interest rates attracting customers
It goes without saying that the real estate industry’s perennial hope is fixed on lower interest rates as it improves affordability. The move to reduce interest rates by banks is encouraging and will further pave the path for robust housing demand. The RBI’s firm assurance in maintaining the status quo has also boosted demand in the market. As the vaccination campaign continues to strengthen and the central bank maintains its supportive position pegging interest rates at historic lows, residential demand is set to revive strongly in the near future.
Home buying for self-consumption
The pandemic is creating a desire to own a home and there is an increasing tendency to move away from populated and polluted city areas to more suburban locations and work from home supports this. Security and safety are also factors explaining why people seek homes for self-consumption. The recent sales numbers in key markets are signs that the positive momentum towards owning a home will continue towards the New Year. Also, millennial homebuyers with rising incomes are driving the housing demand.
Demand for multifunctional homes
Preference for larger homes with added spaces like a work station, reading nook or activity space has certainly increased. With increased time being spent at home, homebuyers are identifying projects with well-designed apartments that give them that extra breathing room. The pandemic has given homeowners the time to reflect on the value of the space that they call their home. Having spent a good amount of time indoors over the past one and a half years, homebuyers now realize the value of having multifunctional homes.
Ready to move in homes in vogue
There’s more demand for ready-to-move-in projects or the ones which are closer to completion over under-construction properties. Ready-to-move-in spaces will remain the top priority of today’s discerning customers who do not want to wait endlessly for their properties and expect quick possessions. Given the pandemic and the need to be safe, buyers are eager to buy a home in quick time. There is also increasing interest in villas, as this serves the purpose of a standalone home but at the same time is within a community with a host of amenities. The preference is also towards reputed developers with a good track record, execution capabilities and high-quality projects that are gaining substantial market share.
Infrastructure access being key
Home buyers are preferring properties with good connectivity in terms of access to transport hubs to prominent localities and to the central business district, along with access to hospitals, educational institutions, supermarkets, parks, entertainment spots, and recreational centres. Locations that comprise a strong mix of physical and social infrastructure and are relatively better priced in comparison to expensive locations, have witnessed a higher demand recently. Today, most homebuyers are looking to upgrade their lifestyle and are willing to stretch their budget a little more to ensure that they find homes that provide comfort, space and convenience too.
In conclusion, it can be said that post-pandemic-specific developments such as work from home, rise in digital technology, changes in regulatory measures such as stamp duty correction and circumstantial factors such as the historically low home loan rates are stimulating home buyers & investor interest in residential real estate. Developers have analyzed the trend of a healthy lifestyle and have shifted their interests towards developing projects that fulfil the changing needs of new-age buyers in a post-Covid world. With Indian homebuyers seeking security of owning a home against the backdrop of a stabilizing economic landscape, the country’s real estate is set to generate vibrant returns in the future.
Corporate Comm India (CCI Newswire)
