Monthly Archives: November 2020

Effect of Pandemic on Residential Properties

Pandemic has accelerated sales of residential properties in smaller cities because some of these living spaces are available in developed and habituated townships. Demand for condos and integrated townships in Tier II cities has also seen a surge, with increased need of safer environment and amenities within gated communities.

Organisations are planning to continue work from home and policies like Atmanirbhar Bharat and Make in India will create opportunities in tier II & III cities.

Reverse migration is also likely to continue for some time so demand in these cities will increase. If you analyse residential sales from 2014 to 2019, tier I cities grew at 28%, but tier II grew faster at 51%.

Tier II and III cities have witnessed considerable rise in demand in the recent past, primarily due to accessible pricing, more space, better returns on investment and lower cost of acquisition, mostly for ready to move in units according to senior executive director, DLF Home Developers Ltd.

After Pandemic, there is a rise in trend among homebuyers to build a lifestyle away from the hustle of a metropolitan cities. People are buying well-developed plots and independent villas instead of houses in group housing societies or in high rise buildings.

 

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SBI to Support Real estate Industry and Builders fraternity

State Bank of India chief general manager O P Mishra has assured the real estate industry and the builders’ fraternity of all possible support to address various issues concerning them at a meeting with the CCREDAI-Hyderabad.

Key points of the meeting were to:

  • Strengthen the relationship between the bank and developers and to discuss issues relating to home loan sanctions, project tie-ups and project funding.
  • Favour more meeting with builders and the industry at frequent intervals so that various aspects concerning them could be discussed and action initiated.
  • Assurance that other issues which required the intervention of the centre would be taken up.

He said the main points arising out of the COVID-19 pandemic had been addressed to a large extent through relief measures like moratorium on EMIs, charging of simple interest during moratorium period and extending emergency line of credit to builders.

 

 

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