In a span shorter than one year, the COVID-19 pandemic has impacted the world tremendously. No area or field, including real estate, has been left untouched by the destructive force that the pandemic has unleashed. The Indian real estate market, like other fields, has also undergone critical effects due to the virus. In the initial stage, the real estate market witnessed a major slump in its growth and performance as sales of residential properties collapsed abjectly. People were losing jobs, found it difficult to go ahead with plans of purchasing property and even paying loan installments. At that stage, everyone, buyers as well as sellers alike, were disconcerted by such a massive financial crisis. However, as time passed through 2020, things stabilized a bit after gradual relaxation in lockdown that was levied to control the pandemic spread. The Indian real estate market began picking up slowly, but with major shifts that are likely to stay for long.
Here are three significant trends defining the current Indian real estate market that homebuyers ought to take note of:
- Tilt towards Buyer’s Market Structure: Although Indian real estate has been predominantly a buyer’s market, it is in favor of buyers even more now. The Indian real estate property developers are going out of their way to woo potential buyers. They are reducing the prices of the residential property substantially so that homebuyers can go ahead with their plans to buy a home. They are offering attractive deals and schemes to buyers such as easy payment options, low home loan rates, and flexibility in making payments. The objective is to induce buyers to invest in property without worrying about their financial position and also minimize losses their companies are facing.
2. Prioritizing Owning a Home: There are people who prefer renting a residential property instead of buying a house for various reasons. However, in today’s times of extreme uncertainty, a need for the security of having their own house has emerged. People are realizing that owning a house provides a sense of security which rented property cannot in the long run. With real estate developers and financial institutions providing tempting offers and deals on the purchase of residential property, the prospect of buying a house has become less daunting to homebuyers.
With expert advice and guidance being offered to potential customers, it’s becoming easier for them to make crucial decisions about stretching a little bit to buy a property. The Indian real estate marketers have been endorsing it fervently, which is motivating many to seriously consider buying property.
3.The shift towards Tier II and Tier III Towns: People living in metropolitan cities are now open to the idea of living in Tier 2 and Tier 3 towns. These regions have been developing exponentially. Properties in these regions cost much less than what they do in metropolitans. Moreover, they offer a host of amenities and facilities that are on par with those in major cities. Further, connectivity and transportation facilities are being improved avidly by the authorities in these areas. Other factors like good job opportunities, availability of modern facilities, and proximity to natural hinterlands are other advantages of living in emerging towns. Homebuyers are now more willing than ever before to shift to satellite cities and similar places.
These trends symbolize the gigantic changes that have swept the Indian real estate sector this year due to COVID-19. They’re most likely to be here to stay for long. It’s important for homebuyers and real estate developers to take this into consideration while buying and selling property, so both are in a win-win position.