Real Estate Market Challenges And Opportunities In 2021
Thanks to rationalization in valuing and low-interest rates of loans, the flow in demand in the residential sector is expected to continue in India.
Despite the pandemic, the last quarter of 2020 and the first quarter of 2021 saw a robust sale of homes across major cities. The high sales of residential properties came on the back of historically low-interest rates and big concessions in the shape of limited period stamp duty reductions. According to a report, a reduction in the stamp duty by the different states’ governments saw the registration of residential properties jump over two folds at the end of last year.
As we enter the non-festive season of 2021, the momentum of sales could little bit slow but will remain strong, just like in the previous years. With most of the laborers relocate during the lockdown now coming back, construction activity has restarted and construction work is moving at a good pace to meet deadlines.
If we talk about Delhi NCR, then there are lots of residential properties which were unsold but ready-to-move-in condition, with no GST to be paid because OC was already issued. This fact has also aided home buyers to look at real estate positively as an investment.
Here the demand for residential property has also been led by the trend of work from home — as families are now looking out for extra space becomes for work from home set-up is a crucial factor.
Current status of residential real estate in Delhi NCR:
Delhi NCR’s booming real estate scene looks rather positive and the micro-market has improved beautifully with the times.
The residential property market in Delhi shows that a decline in property rates on top of the need of prospective buyers to have a permanent address has given them a reason to purchase their dream home. So, we can say that the demand for spacious residential apartments is going to rise in the future. Many real estate developers in Delhi offering reasonable price residential properties like DLF Capital Greens & Unity The Amaryllis with the best amenities & features, which is expected to bolster the market.
As this pandemic made everyone aware of their need to invest in residential property as a permanent source of income, those in the real estate sector hope to see a huge spike in the ownership of residential properties during 2021. As well, the initiatives taken by Central and State Governments have kept the industry rising.
And the best thing is that now the real estate sector has adopted digital processes rather quickly and has employed smart ways of communication with buyers & investors. Property buyers too have taken well and feel safe with virtual home tours, video conferencing, online payments, etc.
On a path of reinvention
The real estate sector is like a wheel of the moving economy in India, infrastructure development and residential property market are the important components known to be decisive in revitalizing a countries economy in the financial downturn. As well, the real estate sector is one of the biggest job providers, as to this, all the subsidiary industries that cater to construction activities like — cement, steel, aluminum, and the like.
Now, real estate has to implement advanced ways of dealing with future requirements. Whereas residential properties will continue to be sold, they will now be done with advanced disruption. This reinvention will comprise technology playing a big role in dealing with altered norms being measured by prospective home buyers.
While the outcome of the pandemic cannot be ignored, urbanization has to remain and the real estate market will return in a transformed way shortly. This return of sales in 2021 displays a flow in demand amid the middle-income and upper-middle-income groups as they get ready to buy their dream homes in a year that has started on a good note with the sector and overall economy looking up to an impetus vaccine shot.