The real Estate Sector was the only silver lining in 2020
With Covid-19 raging across the country, the silver lining throughout this pandemic was the real estate sector for the Indian market. Signs of a significant revival in this market have given this sector an upwards trajectory and have boosted sales ever since. Mumbai led the way when it came to sales due to discounts in stamp duty charges.
Housing market statistics and preference of homebuyers
The housing market has clearly witnessed an increasing demand for residential property in Mumbai. Real estate in Mumbai has witnessed an increase in the overall prospective buyers who are looking to acquire a house within the next year. 80% of people want to own a house within a year, while 65% of the buyers prefer ready-to-move-in houses. The concept of homeownership appeals to a large sector of people and is being strengthened with various factors that include attractive schemes given by real estate developers, low-interest rates, discounts and flexible buying methods.
Trends that shape realty today
Last year, no one could have predicted the trends that would dominate and define the real estate market. Today, the winds of change are being seen on the consumer and developer front already. However, some key trends have prevailed throughout the year and will continue to do so.
The rising popularity of proptech
The real estate industry has been quick to adapt to any challenges it faces. With the rising popularity of proptech, real estate companies can enable smooth continuity of business even in a remote capacity. The reliance on digital technologies delivers smarter and more efficient selling, leasing and property management that will move homebuyers to online real estate portals. With digital-irreversibility, real estate developers have made digitisation at every step of the home-owning process, from transactions, property management to virtual tours, to enhance the customer experience.
Demand towards more popular real estate developers
The demand for financially stable real estate developers has increased. People are now looking for developers who are renowned in the real estate sector, have a good track record, carry out high-quality projects and will gain substantial market share. By investing in high-end names, the real estate sector has moved into the trend of buying homes from the best in the business: the most popular real estate developers.
The boom of suburban markets
Builders in Mumbai have realised that today, people are looking for properties in the suburbs, owing to the desire for a better lifestyle, the presence of multinational industrial sectors in the area, and a close-knit working community. Not only that, luxury properties in Mumbai are priced 30-40% lesser in the suburbs as compared to in the city. Studies also found that people value proximity to amenities over anything else, and the suburbs provide everything you need at a walk-down distance. All these reasons have led to an increase in housing demand in these areas.
Low Home Loan Rates
In the past year, the RBI has cut interest rates which now stand at historic 15-year lows. Some have even gone down as low as 6-7% and have pushed previously unassertive buyers to invest in upcoming residential projects in Mumbai and make a purchase, be it studio flats, 1BHK or 2BHK flats. Coupled with the additional discounts offered by real estate developers, investment in this sector seems to be the most cost-effective kind that can be made by anyone.
Mortgage Rates Hit All-time Lows
Not only have home loan rates fallen, but even mortgage rates have plummeted and dipped. This serves as a ripe opportunity for homebuyers to invest and find themselves luxury flats in Mumbai at affordable rates.
REITs
REITs have emerged as a viable investment option as compared to conventional property purchases as they provide greater diversification, higher returns and are low-risk. They are a great way to diversify your investment portfolio.
Ready-to-move-in apartments
Today, people want close-to-complete buildings that come with ready-to-move-in, fully furnished apartments. These apartments eliminate any kind of market risk and are a secure choice to make. Even the pricing of such residential projects in Mumbai is kept marginally different from others. So as to encourage people to buy these properties without thinking twice.
Demand for larger homes
The sizing-down trend of houses has come to a standstill as there has been a sudden surge in the demand for larger homes. Real Estate Builders in Mumbai have realised that people prefer their own space to carry out recreational activities, a separate study room, workspace, gym area, ensuite rooms and much more. Realtors in Mumbi have now been more focused towards building developments that offer larger lifestyle spaces.
Affordable homes
The concept of affordable housing is popular in India as the government has also given it a considerable push through various initiatives and schemes. Schemes like the Pradhan Mantri Awas Yojana pushes affordable housing that will prove beneficial to real estate developers in Mumbai. The various incentives offered through this include subsidies, tax deductions, funding and reduction in GST rates. This has paved a healthy way for investments for this sector to flourish.
How the real estate sector has demonstrated remarkable growth and will continue to grow from there
The real estate sector has demonstrated remarkable growth in terms of sales, infrastructure development, new spaces, price appreciation and reduction in stamp duty charges. The demand for housing, especially in the affordable and mid-income segment, was always bound to rise with newer demands and developments. The real estate industry will continue to break all boundaries and will be the stimulus boost to the real estate sector and the economy.