Some Of the Recent Trends Shaping The Real Estate Sectorby Vicky Kaushal Digital Marketer
There was a short time when the growth saturated during the pandemic and the Indian real estate sector is gaining momentum with recent trends again. The lower interest rates on home loans, good discounts in stamp duty, greater availability of ready to move in projects inventory and a long-term shift towards remote working.
Now, as we are moving in the second half of 2021, India's real estate sector is emerging from the effects of the pandemic with its growth story intact. Though the last year was challenging and tough each of us but this sector is managing to move on a new growth trajectory with new opportunities arising from segments including warehousing, data centres, and logistics.
In addition to being the second-largest employer in the country, the real estate sector also plays a massive role in India's economy, creating demand for over 270 other industries, including cement and steel.
The residential real estate market has seen a major percent of increase in both sales and launches in the first quarter of 2021 compared to the same quarter last year. The recent trends like lower home loan interest rates, discounts in stamp duty charges, greater availability of ready inventory, and long-term shift towards remote working are shaping the real estate sector in 2021.
Lower Home Loan Interest Rates
It is a favourable situation for the people who are buying a home as over the past year, RBI has cut interest rates to historic lows. This has subsequently lowered the interest rates to 6% in some of the reputed banks. These trends have encouraged homebuyers who were previously deliberating about moving forward. Home loan interest rates are currently at a 15-year low, which is likely to continue throughout 2021.
Stamp duty discounts
Stamp duty is a mandatory payment that needs to be paid to the government to get the property for sale registered. Reducing stamp duty provides stimulus to the market and incentivises potential homebuyers. A reduction of stamp duty would also promote affordable housing, which would significantly bring down the transaction cost.
Greater availability of ready inventory
Today, a buyer can get options in ready to move in properties that has significantly reduced consumer hesitation and market risk, thus strengthening demand.
Long-Term Remote Working Scenarios
As Covid as introduced remote working and it must now be approached with a long-term view as many companies have allowed lifetime work from home. Accordingly, people will continue to want more spacious homes to accommodate home offices.
Furthermore, with people's penchant for remote working, the housing demand in tier 2 and tier 3 cities is expected to rise. This trend will encourage consumers to buy homes in low-density areas and offer larger plotted developments in gated communities with well-managed infrastructure.
Model Tenancy Act
Just some time back with the introduction of Model Tenancy Act 2021 would make rent laws more transparent and equitable. This will help remove restrictions on a large number of housing units that could be leased out. Once states implement this Act, the high amount of vacant housing stocks can be included under the banner of formal rental housing.
Thus, these are some of the factors that have uplifted the market and boosted the demand of property for sale.
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Created on Aug 31st 2021 05:38. Viewed 344 times.