Every sphere in the world seems to be reeling under the impact of the COVID-19 pandemic that struck in 2020. It’s no different for the real estate sector, which is bearing a considerable brunt in addition to the slowdown that already hit it a few years ago. The momentum of the effect exerted by the virus has been severe; home buyers and investors were taken aback and had to alter their purchase decisions considerably.
They were faced with challenging prospects like loss of jobs, salary cuts, lack of job security, and more. Buying a home has become an overwhelming decision for most people since 2020. The lockdown brought nearly everything to a standstill.
Property prices hit an all-time low in 2020, which changed the dynamics for buyers as well as sellers. As for 2021, the scenario seems much better and is looking up. Since the economy opened from the third quarter of 2020, real estate performance picked up, which will continue to be better through 2021.
- Reduced Cost of Housing: Considerable reduction in property rates, stunted growth of the same since 2020
- The decline in Interest Rates: Slashing of repo rate by authorities
- Fresh Incentives for Property Buyers: Attractive deals, offers, and incentives being offered by property developers, financial institutes
- Government Initiatives: Various measures like reduction in stamp duty, deferment of installment payment facilities, and other sops initiated by the government
- Festive Offers: Attractive offers and deals on a bigger scale through 2020 to 2021
- Work from Home Prep: People deciding to own a bigger house for better work from home arrangements in case of future eventualities
Suggested Read: Best residential & commercial areas to invest in 2021
Contemplating Real Estate Investment in 2021?
Property investment across India, including Pune, a top metropolitan city, has witnessed massive growth since the beginning of 2020. Property rates hit the rock bottom level, which led to the introduction of an array of incentives and provisions for the benefit of real estate buyers. Compared to 2020, property prices are stabilizing gradually, and buyers are also finding it more feasible to consider purchasing property in 2021.
Experts are of the opinion that the time now is right to consider real estate transactions. Both, residential as well as commercial projects, are conveniently available in prominent locations as sales have been lower than usual since 2020. Sellers have been keen to boost sales of their projects, for which they are willing to offer a host of inducements to buyers.
If you had been planning to buy real estate in 2021 but wondering if you missed out on better deals in 2020 as the situation understandably seemed really grim then, worry not. Property rates are still attractive, and incentives such as:
- Low home loan interest rates
- Attractive offers and schemes from property developers
- Flexibility and longer time span for making payment
- Lower cost of credit for purchasing home
- The RBI pursuing an easy monetary policy to address growth challenges inflicted by the pandemic
- Lower policy rates resulting in a decline in lending rates by financial institutions and banks
- More competition among real estate developers leading to better support experiences for buyers
- Continued support from financial institutions
- Better offers and benefits for women keen on buying property are still being offered now.
Conclusion: To sum up, the real estate sector in the year 2021 is way better and looking up, spelling better times for buyers as well as sellers. If you’ve been gearing up to make a real estate purchase or investment, experts would advise it’s the right time to put your plan into action.
Further, it’s the perfect time for first-time real estate buyers also to take the plunge. One cannot really predict what’s in store in the coming times, but it’s advisable to make the most of the current real estate situation which is highly favorable now.