With the Indian real estate sector recovering steadily, the festive season is expected to provide a major boost. The buyer sentiment has undergone considerable change, resulting in fresh demand for properties. Indeed, the COVID-19 pandemic plagued the real estate sector with various problems. The industry went into a period of slowdown between April and June, struggling to record new sales. However, this situation started to change with a significant increase in sales and supply of real estate properties between July and September.
It might be noted that the property sales started to grow as soon as the government started to unlock the country in a systematic way by removing the restrictions. However, the sector had been struggling with low sales in the recent past. Evident, the pandemic and the lockdown also brought positive effects upon the real estate sector. This rise in demand has taken place among investors and end-users alike.
For investors, real estate has now emerged as one of the most reliable options. The stocks crashed quite badly due to the pandemic, causing the shareholders to suffer severe losses. Many of the stock market investors started seeking other investment avenues, which would be more reliable. Naturally, real estate turned out to be the best option as housing is always in demand irrespective of the condition of the economy.
Over the last decade, the millennials had developed an idea that renting is better than buying a home. This is particularly noticeable among young professionals who switch jobs often and need to move around. However, the pandemic reminded people the real reason behind owning a home. A rental home doesn’t usually offer the privacy, safety and personal space that one’s own home comes with. As per studies, a large number of home renters have now turned to purchasing residential properties instead.
Apart from the changes in perception the pandemic brought, the sales have also been boosted by various government initiatives. For example, the RBI has brought down the repo rate to 4%, which is the lowest in 15 years. Certain states, such as Maharashtra, have lowered the stamp duty charges considerably. All these have made housing more affordable at a time when the potential buyers had started to postpone their plans due to the financial crisis caused by the pandemic. With various offers and discounts expected to be offered, this festive season is likely to be a major success.