Post COVID 19 is a new normal & the surge of migrant workers & all citizens in general, wanting to return HOME during this lockdown is a testimonial of the fact that a HOME is close to everyones heart and those in Housing business will always remain in business, provided they are in sync with the realities of the times. Today the buzz word is AFFORDABILITY and developers offering a HOME in the affordable segment will always find takers.
This brings us to the next question – Will prices correct post COVID 19?
Every other year in our country, we have a new regulation being passed which has a direct impact on REAL ESTATE Industry. A popular study shows that builders & land developers have already absorved an additional cost of upto 20% on account of GST, RERA, compliances under various other statutes, etc where as the selling price has remained stagnant. This effectively means that developers are already subsuming the 20% cost surge, without being able to pass it on to the consumers! Prices have bottomed out completely and this is the best time for anyone looking to buy a home or a plot.
Will Real estate in India survive as an investment option?
The following points convince us beyond doubt that the Indian real estate story is alive & kicking.
- The whole world has looked upon India with appreciation for the manner in which it has tackled COVID 19 and most of the NRIs want to invest back in this safe country which values people’s lives more that anyother thing.
- With the USD – INR exchange rate at an all time high and with reverse migration happening, homes in India have become much cheaper for NRIs to own
- Mutual Funds & Stock markets have fared adversely during these times with investors loosing over 50-70% of their investments. Historically, Real Estate held for 5 – 10 years has led to tremendous appreciation in value.
- COVID 19 has made people realise the value of owning a HOME. It is the best place to stay at during an extended lockdown. For those who do not own a home, they aspire to buy one and those who already have one, are looking to upgrade or have a second home with health & other amenities as a safe bet
- Millennial’s who hitherto were going ‘asset lite’ and preferred ‘Co-Living, Co-Working’ spaces will see a gradual shift to owning a Home, be it small or big. It gives a great sense of security during trying times.
- With Work From Home catching in, a HOME is of prime importance
- With the recent measures announced by the RBI, interest rates on housing loans will come down drastically. This will an added incentive for homebuyers
In summary Home is the only asset class which one can occupy, it provides a great Sense of security, a feel Good Factor and Long term capital appreciation!
So, once you have zeroed in on a project with a credible builder who complies with RERA and other local regulations, don’t have a second thought, just make your purchases as prices are bound to tick upwards.