Real estate is slated for a revival during the ongoing festive season, especially on government support which has been leaving no stone unturned to revive the sector.
The adversities that loomed over India’s real estate sector during the period between April and June 2020 notwithstanding, it is now treading on a path that leads towards its eventual revival, all thanks to a perception and behavioral change caused by the world’s biggest health emergency that triggered the transformation clock for the world.
Data available with us show housing sales as well as new supply increased during the July-September period, a time when the government started the systematic unlocking of the country after a prolonged lockdown to kick-start the economy.
Now, even though the coronavirus pandemic unleashed a plethora of issues on residential real estate, at least during the lockdown period, it has also helped buyers and investors view real estate much differently now.
The trouncing witnessed by stock markets and other asset classes have made investors acutely aware of the stability real estate as an asset class offers. For similar reasons, millennial buyers, who thought it burdensome to be tied to a long-term asset like real estate, the pandemic has also acted as an eye-opener. As shown by our research report, concerned yet positive, a large number of renters are now considering investing in property for the safety only a home and not a rented accommodation could prove.
It is pertinent to mention here that if India’s real estate sector has suffered a prolonged slowdown in the past few years, buyer sentiment and the manner in which they viewed real estate had much to do with it. Since the pandemic has been instrumental in reversing that perception, the developer community has to tread cautiously, seamlessly execute its plans and focus on delivering all it promises in order to help the sector regain its past glory.
The stage, as they say, is already set for that. While the RBI has already brought down the repo rate to a 15-year low of 4%, consequently lowering the cost of borrowing for buyers, states like Maharashtra have lowered stamp duty rates to make property more affordable. The ongoing festive season has also presented itself like the perfect opportunity to revive buyer sentiment though attractive discount offers and easy payment schemes.
Mindful of the changed buyer behaviour, who has become more tech savvy and hooked to digital tools, the builder community is also using virtual channels to transform home buying journey. This means a buyer can buy an affordable property at discounted rates from the safety of his home, something India’s real estate would have taken years to achieve had the pandemic not given it a giant push towards a technological transformation.
Based on all these factual data, it would be safe to assume real estate is slated for a revival during the ongoing festive season, especially on government support which has been leaving no stone unturned to revive a sector that not only is the second-biggest employment generator in India but also provides work to a large portion of the unorganized and unskilled workforce in India.
(By Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com)