Senior citizen investors may have suffered due to rate cuts, but it has helped people looking for loans to buy houses for them.
Along with low interest, cheaper homes due to lower demand during the pandemic period and improvement in job situations post Covid have created a favourable situation for the real estate segment.
“We have already witnessed a healthy demand this year and are quite confident that it will continue in the near future amid healthy economic growth. The market did recover as the year went along due to a boost in the consumer sentiments on the back of favourable government policies, necessity for owning a home during times of unprecedented uncertainty, overall improvement in the job market, all-time low home loan interest rates earlier supporting the residential market recovery. The previously investor-driven realty sector strongly evolved towards an end-user market,” said Ramani Sastri – Chairman & MD, Sterling Developers Pvt. Ltd.
Market volatility and unattractive rate of interest on fixed-income instruments have also made the investments in residential real estate relatively more attractive.
“As fragility has persisted in other financial assets, particularly stocks, real estate is considered a viable alternative for investors and will continue to be a safe investment in the long-term. Real Estate will emerge as a silver lining due to its stability, security and safety and is definitely an asset class that one must remain invested in today and in the long term,” said Sastri.
Increasing commercial activities and preferences of people to stay near their workspaces may also act as catalysts to boost the demand.
“Today’s customer has a very clear idea of what they would call their dream home as the pandemic has taught us the value of having your own space in the right location. The idea of walk-to-work is a priority now while finalising home-buying decisions along with demand for multifunctional homes. The surge in commercial activities too will naturally translate into increased housing demand as we move forward and this will be a boon for real estate in high-growth markets,” said Sastri.
Talking on the prospect of residential real estate, Sastri said, “The market outlook is certainly positive and given the confidence built in 2022, we do believe that markets will see sustained growth over the next few years. The real estate industry is now set to move beyond the past and 2023 will be an exciting time to discover.”