The real estate sector which was struggling in the pandemic finds its hope in residential homes.
The real estate sector in India was under the strain of regulatory reforms like Real Estate Regulatory Authority (RERA), GST, demonetization and also the Benami property law.
With the visitation of coronavirus and the lockdown that ensued, the sector was at a stagnant state between March and June 2020. After several tiptoes, there was hope for a revival. Then the second COVID wave smacked it all.
Diminish in site visits due to partial or complete lockdown in different parts of the country slowed retarded property transactions.
Hopefully, there is a possibility of the sector reacquiring its momentum from the third quarter of FY 2021.
COVID-19 is still brooding over India, but it can be a fine time for home dealers and buyers. One significant reason is that the emotions of owning a home and the question of the need for a collective workspace have boosted during the pandemic. In addition to this, the concept of ‘holiday homes’ is also gaining popularity.
Things that‘ll increment this trade:
*All-time low-interest rates of 7.15 to 7.8 per cent on home loans.
*Acceleration of technology-led home buying.
*Option of virtual site visits and digital selection and purchase of the property.
The average home equity loan interest rate was 8% in January 2020. Now with RBI keeping the repo rates at 4% has brought the interest rates to a median of 6.65% annual interest. This will also boost the sale.
Elements that pilot the preference of location:
*Closeness to workplace
Unlike the anomaly that shattered the business when the COVID first arrived, now buyers are clearer about the new methods they ought to seek. Like all other products and services that made use of digitalization, this sector also explored digital platforms.
Dealers and buyers can connect online. Virtual tours help in site seeing; this helps them to compare properties easily and it is time-saving. They can make online payments as well.
Those who make the best use of the opening doors are guaranteed to be a part of the greenery in the asset business.