WHY MORE INDIANS ARE INVESTING IN REAL ESTATE DURING THIS PANDEMIC
Investing in real estate is a common aspect of the Indian economy. Indians usually buy a property with the primary motive to either invest or use it for rental purposes. However, with the virus outbreak and resultant lockdown, many Indians realized the essence of having a house in their home city to settle in. The pandemic, thus, made home-buying both a lucrative and sentimental option for Indians.
The increased transparency and easy investment rules have made the residential real-estate market increasingly lucrative. Events like the enhanced liquidity in the banking system, the significant drop in property rates, stricter regulatory measures has had a restoration in the buyer confidence that has further sweetened the deal to buy a home in their city.
Along those lines, let us look at some of the important reasons that led to many Indians to invest in real estate during this pandemic.
Property buyers are on the lookout for plots to construct homes that suit work-from-home. Also, most Indians invested in options that matched with their lifestyle i.e. with lots of open green spaces that provide wellness and health amenities, along with good connectivity and convenience. Investments away from the city have seen good traction as they are far from all the hustle and bustle.
An important aspect is that plots, flats are of tangible in nature and will not change over time. They fall under the non-volatile category i.e. they will remain the same for years if left untouched whereas the stock market is of volatile nature and will change overnight. This sense of security led many Indians to invest in real estate as these assets won’t be changing overnight.
Affordability of property is a bonus for most prospective homebuyers. Many real-estate developers offered good deals on their properties which gave people exclusive lucrative offers. This became a seller’s gain as well an advantage to buy properties at a very lucrative price.
Buying a plot is never a short-term investment; rather, it is a long term process. Investing in a plot may not give quick benefits, but will give beneficial business over a long period of time. Investments in real estate have an exceptional high return on investment in the long term, thus pushing many to buy property during this time for future profit.
Low home loan rates
The pandemic outbreak made many state governments reduce the home loan interest rates. This relaxation provided the best opportunity for buyers to make an investment in real estate. Lower home loan interest rates increased the budget and allowed many to go for better choices.
The government took a few steps to revive the economy and the real estate sector by setting AIF (Alternate Investment Fund) of ₹25,000 crore to provide last-mile funding to about 1,600 stalled projects at different stages, increasing Income tax exemption on housing loans of ₹ 2.5 lakh to ₹ 3.50 lakh for affordable housing, and many other measures to boost supply and demand. Also, the initiatives such as stamp duty reduction in Maharashtra, the extension of the RERA deadline as a part of the Atma-Nirbhar Package, RBI extending the loan moratorium, and the very current reduction in premiums by 50% in Maharashtra have paved the way for rise of demand in cities like Bangalore, Mumbai and Pune.
The pandemic was a tough time for all of us but thinking like an investor can get you good returns in the coming days. If you have not invested in your property yet, then it’s time you think on the right property and do the best research so that you can get your dream house at affordable rates. A reckon would be Classic Featherlite, they offer innovative real-estate projects that deliver lasting value. Their projects include plotted development, apartments and villas in select-locations with excellent growth potential.