Real Estate asset value to strengthen further post second wave

In 2020, the realty sector witnessed a marginal increase in prices in few markets, including Delhi NCR. However, real estate is becoming affordable due to low home loan interest rate, reduction in stamp duty in some states, etc. The burden of increasing raw material cost does not leave any scope for reduction. The time is right to invest in real estate as prices are likely to go up in the short term. For the last few years, one of the factors majorly affecting the prices is the raw material cost. The cost of some of the raw materials has gone up by 200 per cent in the last three years, making it unrealistic to cut down prices in real estate projects. Looking at the emergence of buyer-friendly, especially post-2020, people should not wait to get hold of real estate assets. By the end of 2021, the chances of witnessing price rise in the range of 5-8 per cent in various markets.

After the second wave, the current situation is likely to drive up real estate demand even further. The stability and utility of real estate assets are clear to people, particularly after the experience in 2020 with various other investment tools, and NCR will clock in good sales numbers in the coming months. Prices in real estate are at their lowest level and are likely to go up in future.

Mr Pradeep Aggarwal, Founder & Chairman, Signature Global Group, Chairman, ASSOCHAM, National Council on Real Estate, Housing and Urban Development, says, “We have witnessed a renewed interest in the real estate sector, which has led to a decrease in unsold inventory. Demand and raw material cost are the two most important factors determining the prices, and both these factors have shown an increase. Even the new projects are being launched at higher prices as the developer community has no choice but to increase prices due to the increasing cost burden. People are investing now in real estate, and we are seeing that even the fence-sitters are going ahead with buying decisions. The coming months will witness a price rise; the percentage of change will vary according to the markets.

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