Real estate trends during the Covid-19 2nd Wave

Real estate trends during the Covid-19 2nd Wave Real estate trends during the Covid-19 2nd Wave Real estate trends during the Covid-19 2nd Wave

SOURCE: Financial Express

With the second wave of Covid-19 sweeping the country, we’re back to partial lockdowns and a slew of restrictions. This is affecting the real estate market and delaying important property transactions. While there were signs of a significant recovery in the real estate market in the first quarter of 2021, we are now seeing a temporary halt in an upward trend. More truncated housing sales and scrapped/delayed property development projects are likely to occur in the months ahead.

However, not all is lost, and there must be a forward-thinking attitude, because the residential real estate market in India has seen a steady rise in both sales and launches from January to March 2021, according to Knight Frank India. According to the report, this is a 44 percent increase over the same quarter last year. In addition, 76,006 units were launched. Furthermore, due to stamp duty reductions, Mumbai and Pune topped the table in both launches and sales, according to the report.

The trends that will dominate the real estate market for the rest of this year are listed below.

Working from Home: The work-from-home trend is here to stay, and people will continue to desire larger homes with comfortable home offices. Remote working will continue to encourage people to buy homes in their hometowns, so demand in tier 2 and tier 3 cities is expected to be slightly higher. Low interest rates may also encourage people to buy homes in low-density, plotted developments with well-managed infrastructure in gated communities. Credit stress among developers, on the other hand, is expected to persist, and distressed real estate may emerge as a distinct category.

Low Home Loan Rates: The RBI has cut interest rates in the last 12 months, bringing them to historic lows. Home loan rates have dropped to as low as 6-7 percent in some banks as a result of this. Both of these trends have pushed previously hesitant buyers to take the plunge and buy a home. Interest rates on home loans are currently at a 15-year low. There are some very real savings to be had on what is usually the most cost-intensive investment in one’s lifetime, especially when combined with the bottomed-out property prices and additional discounts and offers by developers. This pattern is expected to continue into 2021.

Real estate trends during the Covid-19 2nd Wave

Close-to-ready inventory: Today, there are a variety of options for close-to-complete buildings or ready-to-move-in apartments. These eliminate all forms of market risk, making them a safe investment. Furthermore, the pricing of such properties differs slightly from that of those currently under construction.

As a result, while the second wave may signal an impending real estate market downturn, there will be a recovery aided by digitization. Thousands of property buyers and sellers adapted to online modes of communication and research throughout last year. Until the lockdown restrictions are lifted, the digitization of property searches/inquiries and negotiation processes will continue to aid in keeping the real estate market afloat.

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Real estate trends during the Covid-19 2nd Wave Real estate trends during the Covid-19 2nd Wave Real estate trends during the Covid-19 2nd Wave

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