The COVID-19 pandemic that has raged through the country and most of the world has adversely affected the real estate industry. However, with the worst seemingly behind us, the economy is again gathering pace. It is giving an impetus to the demand for residential and commercial property. According to experts and industry watchers, now is the best time to invest in real estate, especially in a typically overheated real estate market like Mumbai. A brief overview of the top reasons why it is the best time to invest in real estate:
As the economy improves after being disrupted by the coronavirus pandemic, optimism is reflected in the real estate market. Even in Mumbai, traditionally one of the most expensive real-estate markets in the world, the demand for both mid-income 1 BHK in Mulund new project and premium housing is picking up. Of course, projects by the more established names in the business are getting a better response from buyers, but on the whole, all developers are reaping the benefit of the greater investor confidence brought about by RERA. A survey done by ANAROCK Property Consultants and Confederation of Indian Industry (CII) reveals that a mammoth 62% of people in India think that the post-pandemic period is ideal for investing in real property. Everyone is well aware that the coronavirus pandemic is not necessarily the last epidemic and is just a part of the new reality where children will be learning and their parents working online from home. Most people are convinced that they need to have enough residential space that allows them to work, learn, and live comfortably. Easy and affordable bank loans, relaxation in stamp duty, and tax benefits are also encouraging buyers to take the plunge.
The Reserve Bank of India has been proactive in encouraging stability and growth in all sectors, especially in real estate industry to prevent the long-term impact of the coronavirus pandemic. It injected additional liquidity into the market and provided a moratorium on home loans to prevent investor distress and default. The rate of interest has also fallen to a historical low and leading banks like SBI are now disbursing home loans even below 7%. It is making home loans more affordable than ever before. With income from fixed income instruments at an all-time low and mortgage rates dipping sharply, it has led to more investors eyeing the market real estate as a viable and attractive investment option. Many people think that there is no better time to invest in a residential property than now.
To support the real estate sector in times of turmoil, the Maharashtra government sharply reduced the stamp duty applicable on property registration. Even though many feared it would reduce the revenue to the government coffers, the strategic move by the government to cut the rate of tax by 300 basis points proved effective in catalyzing the revival of the residential real estate market and finding buyers for real estate. The state government also announced a 1% concession on stamp duty for women buyers that boosted sales further.
The economic turmoil, accompanied by unprecedented changes in lifestyle ushered in by the pandemic, has underlined the importance of residences with premium amenities and facilities. Buyers are no longer shying away from paying a premium for good-quality spacious residences, especially from reputed real estate developers. It is undoubtedly the best time for acquiring the property of your dreams.