India’s real estate market was on a path of recovery from all the disruptions caused by RERA, GST, and the NBFC crisis. The, the pandemic hit in 2020 and the market witnessed a decline. Nevertheless, property prices in the metros didn’t see a major change. It was the small cities that faced a slump, with property prices decreasing by over 5%.
The lockdown also stalled many housing projects in its wake, partly due to social distancing restrictions and partly because of a shortage of workers. The home loan market also faced a slump due to the decline in real estate purchases.
Now, things seem to be looking up for the Indian real estate market. Slowly, it is seems to be on the road to recovery.
In this article, we take a look at the property market outlook for 2021 for aspiring homebuyers.
Change in buyer preferences
Even though the effect of the virus is dwindling with vaccinations already in effect, the pandemic will still affect the housing market 2021, especially when it comes to buyer preferences. Potential homebuyers may look for larger layouts, with higher hygiene and safety amenities.
When it comes to commercial real estate, satellite offices located in non-conventional micro-markets away from the central business districts (CBDs) are likely to find more takers.
The Government of India is looking to pump some much-needed life into the real estate sector by employing subsidy schemes. These schemes will come as a relief to first-time homebuyers, as they are likely to offer subsidized home loan interest rates, thus reducing the overall EMIs.
These subsidies, coupled with a softening of home loan rates and attractive offers from cash-starved developers were positive factors that paved buyers’ return to the market. In 2021, we will see this trend continue.
Additional Read: Home Buying In 2021: Is It the Best Time to Buy A New House Now?
High property demand
Potential homebuyers, who had their plans thwarted by the lockdown, will look to realize their dreams in 2021. And with the festive season, low interest rates, and a fall in property prices, the rise in demand is already in motion, albeit at a slow pace.
Moreover, the year has also promised an increase in employment opportunities, which will force many to immigrate to other cities. As a result, the demand for ready-to-move-in properties and rental homes will also witness an upward shift.
The increase in FDI (Foreign Direct Investment) and the call for ‘Atmanirbhar Bharat’ bode well for the commercial real estate sector, especially towards the latter half of 2021. After an all-time high during the pandemic, the vacancies in retail properties are declining, thanks to the increased uptake.
Additional Read: Impact of Smart Cities on Indian Real Estate Industry
Now that you’re familiar with the positive real estate outlook 2021, lose no time in taking a step towards your dream home.
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