Pandemic COVID-19 has made people understand the value of investing in the class of real estate properties. This is the reason that even during the lockdown, real estate was able to receive respectable sales, and since the lockdown was relaxed the operation has picked up speed. People now consider real estate as the investment mode of choice over cash, fixed deposits, and stocks. In the last few years, the real estate sector has shown tremendous growth and resilience. Bearing in mind the current situation, support from the government through various schemes and relief packages will help to improve trust in the sector. Along with the packages, real estate is planning for the new developments that have arisen from homebuyers and investors in the form of varied demands.
Because of liquidity issues and confusion over the COVID pandemic, the potential homebuyers who were looking for flats pushed a pause button for the short time. And most of them have slowly begun to return to the market. Now, the prospective buyers, who are mostly end-users, prefer reputable developers, and ready to move in or near completion properties.
Coming up of new luxury
People are now looking for bigger houses or villas because they realize the value of space. People would most likely seek health facilities and an inclination toward nature. In India, demand for housing projects that can provide homes for the new-age generation along with a safe lifestyle a notch above the others has already begun to take shape. The pandemic has, however, now served as a catalyst for all those premium initiatives designed to value human life. A number of buyers are searching for projects with dedicated spaces for a range of residents' needs, including pet care areas, senior citizens' areas, contemplation points with plenty of greenery including medicinal plants. The New World's new-age generation will now go for homes that can bring a tinge of freshness to their way of living. Wellness facilities such as yoga studios, exercise rooms, spas, gymnasiums, tennis courts, and jogging tracks have become the new trend among homebuyers in town. Looking at the magnitude of the pandemic, the bevy of health facilities to be offered will be the persuasive punch for newer ventures. In order to improve acceptability and marketability, several current premium ventures are required to make these changes too.
Rise of the peripheries
The current pandemic situation has resulted in many people staying away from the tier I cities. The migration from these cities will be curtailed which will contribute to job development along with the movement of MNCs, which are already looking to cut expenses. With the job market sorted out after IT and BPO firms pass, the sector is seeing a steady demand for real estate here. Because of the increasing demand, many real estate developers are already present in Tier-II cities and outlying areas. Another explanation for the better performance of residential markets in Tier-II cities than tier I cities is the budget, which is affordable compared to high metro property prices and has become more lucrative in the current situation as people would invest every penny prudently.
Affordable to grow further
The segment that has received the most support from the government's various measures is the affordable segment. A slew of repo rate cuts, CLSS extension, EPF relief, etc., meant the segment was beginning to see growing numbers of inquiries. The relief given under EPF to the common man will also be of great help to the affordable category. The affordable segment buyers fall in this group and would be delighted to get extra money in their hands. In addition to the Rs 3.74-lakh crore liquidity injection announced by the RBI on March 27, 2020, multiple factors work in favor of affordable housing, including the repo rate cuts announced over the past few months. The CLSS extension announced by the government in May will benefit a lot of lower and middle-class families.
People don't want a simple home alone but want luxuries attached to their homes. The realtors are prepared to represent this group of people by affordable sub-segment luxury. The middle-class group is more than happy to pay some extra bucks to get hold of a residence that gives them the feeling of ownership of pride and some comfort at manageable costs. This is likely to also bring out on the market the fence-sitters who did not find the inexpensive products attractive and wanted something special that will now be offered through this sub-segment.
Investment galore for NRIs
The current scenario provides excellent investment opportunities in real estate for NRIs, as affordability is still at a high point. Post Covid-19, the sector would certainly draw more investment from NRIs in both the short and the long term. The thought of owning a real estate asset in their own country is soothing for NRIs and offers a safe haven. After witnessing the fate of global financial markets, NRIs also believe that real estate is a fairly stable way to invest at lower risks. The Indian rupee's recent depreciation has also made things easier for the NRIs, as they now have to shell out less to buy a real estate property. The substantial rationalization of property prices, stringent regulatory steps, increased transparency, and greater sector consolidation created a lucrative avenue for NRIs. In contrast with other investment opportunities, real estate also offers better returns; decent rental yields and capital appreciations have predisposed NRIs to real estate investments.