2021 second wave will lead to resurgence in realty

The second wave of COVID-19 has bogged down transactions for both the rental and buyout of residential properties. However, the residential market is predicted to recover once the second wave is controlled. Today, the second wave of coronavirus has imbued uncertainty within the sector leading to a short lived pause, but developers are now better prepared and well-versed with the know-hows of an epidemic . The onset of pandemic followed by a stringent nationwide lockdown threw huge challenges before the world , bringing it to a short lived standstill. Somewhere pandemic is a good time to invest in a property market.

The residential real estate market has become more lucrative NRIs as a result of the increased transparency and ease in investment norms. Ease in investment opportunities through flexibility in REITs and tax reliefs boosted market sentiments and today, the world is on its road to recovery with homebuyers and investors returning to the market. Also the Prime Minister boosted the morale of the stakeholders by launching the Aatmanirbhar Bharat campaign, which was strengthened by RBI’s announcement of loan moratoriums. But Stamp duty cuts, reduction in circle rates and time extension on deadlines will help further. Although, loan rates largely aided the developers during the volatile times. Strategies were re-envisioned quickly by adapting digitization and reaping rewards from emerging concepts like work-from-home model, remote offices, second homes, big spaces, etc.

Moreover it can be witnessed that the realty sector trends are changing due to the impact of the second wave which will dominate the real estate market like from working from home trend culture to lowering the home loan rates, REITs and availability of close to ready inventories.

Mr. Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development says, “The second wave is having an obvious effect on the important estate market and delaying key property deals. While there have been signs of a big revival in the property market within the half-moon of 2021, but the developers need to face the momentary halt in an upward trajectory. The sector is looking forward to relief announcements from the government, which ease-up the situation for the affordable and mid segment developers.”

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