Due to COVID-19, there hasn’t been one single sector in India or across the world that wasn’t impacted. Similarly, the real estate industry in India is one of the most important economic drivers that had been facing a bumpy experience too. But gradually, the housing sector in India is recovering and the market conditions are becoming conducive to investments again! The revival of the housing sector is giving a new resurgence to the economy. In this blog post, we will discuss the top reasons why the Indian housing sector market is recovering.
Pradhan Mantri Awas Yojna by the Union Ministry of Housing and Urban Affairs
The Union Ministry of Housing and Urban Affairs plans to build 20 million houses in urban areas by 2022 under the Pradhan Mantri Awas Yojna. It will contribute to significant growth in the residential sector’s expansion, resulting in increased demand for commercial and retail office space. So, if you are looking to buy a home in Mumbai, now is the time!
According to the Reserve Bank of India’s recent Financial Stability Report, unsold stock levels have dropped dramatically in the last four quarters. It has gone down from roughly 8.5 lakh in the first quarter of FY21 to about seven lakhs as of March 31, 2021. Consequently, new unit launches increased substantially in the latter four quarters of FY21, reaching over six lakhs.
Prashant Thakur, Director & Head – Research, Anarock Property Consultants, says, “ready to move-in homes are now the most compelling option for homebuyers in MMR and Pune.” Thus, he goes on to mention that Maharashtra was the first to announce a price reduction.
The Effect on People’s Mindsets and Priorities Due to COVID
The pandemic in a way has altered the way people live and think. And these are not just small changes, but a great influence from something as basic as eating, working, enjoying, and spending to making investment changes. Everyone wants to feel secure, and there is an increasing sentiment about the value of owning a home. As a result, the housing demand in India has increased, which is more prominent if you are looking for homes in Mumbai. The huge demand for homes in Mumbai has been attributed to the changing lifestyles of Indians and the need for a home that is suitable for their needs.
LIC Housing Finance’s Managing Director and CEO, Y. Viswanatha Gowd says, “In a post-pandemic world, the necessity and comfort of a personal space have driven many individuals to advance their home buying decision.”
Additionally, the home loan currently starts at 6.66% for salaried people for loans up to Rs. 50 lakhs. So, if you are looking for homes for sale in Mumbai, this is possibly the lowest housing loan interest rate you can obtain and live your Mumbai dream, with a maximum term of 30 years!
The Other Major Factors that Have Boosted India’s Real Estate Market
- Interest rates have Fallen.
- Stamp Duty Rate Reduction
- Revised Economic Policies of India.
- Cut down on Home Loan Rates by the Banks.
- Affordable Property Prices.
- A Decline in COVID Cases.
- COVID Restrictions Ease
- Resumed Daily and Economic Activities.
- Improved status of the employment Sector.
- Highest Level of Household Savings.
The Bottom Line
With COVID-19 cases under control and a robust vaccination campaign running across the country, it appears that better times are ahead in the coming years. It wouldn’t be an overstatement to say that a new market of more progressive buyers and builders will emerge in the real estate sector. Overall, Indian builders and homeowners are steadily regaining their ground, which is a good sign for the future and revival of the Indian housing sector.
