December 19, 2020

Covid-19 Triggering The Demand Of Residential Real Estate!

In the recent past India, and every other nation has witnessed history, the spread of Covid-19 have forced everyone to stay at home. Lockdown seemed to be the only option to check the virus from spreading more. Working from home was the only option to keep the economy rolling. As the grown-ups were working from home, the kids were also having their school and tuitions over the internet. With the long stretch of the lockdown, people started looking for an escape from the monotony of staying at home: as a matter of fact, home was the only escape from mundane of professional life before the lockdown started. It was the lockdown that has made people realise the importance of owning a spacious home.

Despite of all the challenges that the pandemic has thrown at us, 2020 became the most favorable time for investing in real estate, since 2017. With the rising demand for space and the developers showcasing their generosity, the government amending their regulations to support the real estate industry- the real estate industry saw a real surge in the demand for new properties.

According to an internal survey: majority of the participants who polled and were professionals with more than 10 years of experience, preferred to buy an apartment rather than renting one, in the next six months. Further, two-third of them thought that buying a new home has become a necessity, not a luxury anymore!

As per our internal survey, conducted during the lockdown- two out of ten participants who were not planning to buy a new home earlier were interested in buying.

People are looking for new homes because they want to adapt themselves to the ever-changing needs of the situation: they want to have enough space for themselves and their family to be able to work/study as well as get some personal space. The uncertainty about rental properties has also become a point of concern during the pandemic. Hence people started realizing that it is better to pay EMI and have an asset rather than having a rental liability.

Other popular investment asset classes such as stocks and gold are quite volatile and unpredictable in the time of pandemic. Paying the EMI for a house has dual benefits. It not only gives a month of shelter but also increases the proportional ownership of the house. Additionally, home loans come with attractive tax benefits; rental housing does not. Housing retains its intrinsic value in uncertain times and eventually appreciates when times improve.

In the year 2020 the repo rate, which is directly linked with home loan interest rate, is remarkably low. As a matter of fact, this repo rate is the lowest in the last 20 years. The interest rate in 2020 is 6.85%, while in the year 2019 the same interest was between 8.55% to 8.75%. It can be said that this is the best interest rate witnessed in the past two decades.

No GST on ready to move in properties! Projects that have received their completion certificate will be exempted from GST charges: this has not only amplified the buying sentiments of the consumers but it has also offered them a huge relief.

Low booking amounts, attractive offers and tantalizing referral schemes are just some of the various offers on the table for the discerning homebuyers right now. Ready to move in flats are moving more quickly as of now since there is no GST, while assuring prospective home buyers of being able to move in as soon as they want.

Keeping all this in mind, most of the renowned developers of eastern India are offering ready to move in flats at attractive prices at convenient locations, projects like- Prudent Prana, Imperial Riddhi Siddhi, Altius, Kshitij, Two Janki Shah, Atmosphere, Merlin Iland, Merlin Maximus, Ideal Aurum, Aurum, Tata Avenida, Starom Millenia, Vinayak Golden Acres, Vinayak River Links, Eco Valley, Oriental Palms, Utalika, Avidipta - II, Bally Lake County, Siddha Happyville, The Soul, Rajat Avante, White Meadows, Merlin Elements. All these projects offer large living spaces and excellent social infrastructure for creating better communities and a better sense of social security.