An all- time high increase in household savings, despite massive hit by Corona pandemic, will help boost residential real estate.
According to UBS Report, household savings scooped up, $200 billion in extra savings amidst lockdown – a 20 year high. This despite the fact that household savings had been on decline between 2014 and mid-2019. The slowdown in spending by the households through lockdowns, resulted in massive savings. As a percentage of GDP, this is close to the peak seen lost global financial crisis of 2008-09.What is all the more encouraging is that a vast portion of this savings is in cash. Available statistics suggest that cash savings soared by a whopping 135 percent during the lockdown months of 2020. What’s more, this saving not only continues to grow, but is bread based as well. Even the middle class population has been able to do good saving.
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global Group and Chairman, Assocham National Council on Real Estate, Housing &Urban Development, ” Ahead of the budget, this is a very heartening development. Especially on the back of unexpectedly healthy economic revival and impressive revenue growth of companies in the December quarter. The record savings will translate into disposable income and help boost residential real estate buying. With more supportive measures expected in the budget, housing may well be heading for faster revival.