Residential Real Estate certain to restore its demand in Market Post Covid 19by Property Adviser Hyderabad Real Estate Directory – Complete solutio
It cannot be denied that the real estate sector as a sector has been greatly affected. Not only COVID 19, but also pre-COVID, the sector was really dealing with problems. How do you see the prospects for real estate change now, and particularly commercial real estate after Covid because we are all going to live completely differently? If working from home is the new reality, is it intended to affect commercial real estate? We have been affected like any other sector due to the blockade, but we could have a short-term interruption in the next six to nine months, depending on how long it takes for the economy to revive. Our sector has been in recession for almost eight years and once the closure is over, once the economy recovers, we will see a very sharp recovery in the residential real estate sector because affordability is high at all times.
Today's repurchase rate is 4.4%, the lowest in recent years, and even lower than the rate during the global financial crisis. Mortgage as a percentage of annual income for individuals is at a record low of 20-25%. All prices in most cities have stagnated or decreased. So if you look at inflation-adjusted prices, prices have come down over the years. Affordability is at its highest point of all time, so once things stabilize and people are more confident.
It appears that NAREDCO has also approached the Maharashtra Prime Minister's office. While real estate activities have increased in the green and orange areas, when it comes to cities like New Delhi or, actually, the whole of Maharashtra, things are very paralyzed! Plus, that's where most of your business is.
His first question was whether this recession will eliminate some of the players. The clear answer is yes. The consolidation trend in our industry started in 2017 with the introduction of RERA and after demonetization, it accelerated after the IL&FS crisis and the entire NBFC crisis that created a major liquidity problem for the sector.
Covid-19 is, of course, the next level of disruption and much bigger. This will lead to further consolidation in the industry, speed up consolidation, and would not use the word eliminate because some of the players who are currently developers would return to their primary land acquisition and approval related work. what had been its main strength and we will see the emergence of very large developers nationwide in this country.
Just to give you some stats; The top 10 players in India have a market share of around 11% at the Indian level. In China, the top 10 developers have more than 30% of the Chinese market share, which is significantly larger than India. Therefore, we believe that this trend will accelerate and we will see the emergence of very large real estate companies in India that will be good for both the sector and consumers.
Residential Real Estate Sector is one of the basic necessity of the society, that is evident that humans need shelter and this need of humans would keep running this sector and in demand, sure ongoing COVID 19 crisis has hit the market but governments and many real estate legal bodies has taken it's as a priority by supporting this sector with funds and all kind of flexibility. Definitely there would be slight changes in the market with respect to the price of the residential properties due to the corona crisis.
So, as a buyer, you have a huge option of you negotiating power and because of the situation, builders would come up with many offers and relaxation over price. If you are looking to buy properties in Hyderabad, it’s a correct time to buy, to select the right location and projects for yourself, you can refer Property Adviser portal- an online Hyderabad real Estate Directory with 1000+ residential Properties details. You can find all kinds of affordable and premium residential projects here with a smart filter option to save time on your selection process.
It holds the details of more than 650 Apartments for sale in Hyderabad, more than 71000 different sizes & kind Flats for sale in Hyderabad, and also is an archive of different kinds of 230+ residential plots for sale in Hyderabad and its surrounding areas of Outer Ring Road.
Created on May 17th 2020 02:40. Viewed 198 times.