Real Estate market has always been on a roller coaster ride. The last few years were especially tough, and right when the market was about to take a boom, we were hit by a virus. Real estate, like any other sector, got affected too. But this robust industry contributes to 7% to the GDP of the country, which is no joke! More than 250 other industries are linked with the real estate sector, employing around 50 million people. Accounting to such large statistics, the industry was the worst hit but will rebound quickly!
Based on various projected scenarios it is assumed that the real estate will bounce back with an increase in demand for mid-budget homes. Moderately priced, ready-to-move homes witnessed a hike in purchase during the last few years as well. And in this pandemic hit economy, this trend will continue to be in power.
Here is a list of reasons why we think that there would be a rise in demand for mid-budget home –
Even in such tough times, people see buying a property as an investment. And rental income is still believed to be a stable and significant way to have an alternative source of income. Physical assets give a sense of security and during this uncertain period, people want to keep a hold on these resources.
Studies suggest that 67% of the homebuyers who were planning to buy a home before the pandemic would still invest but with a reduced budget. 73% of these buyers said they would buy a property at least 10-15% lesser in price. Another survey revealed that around 36% of people want to buy property in less than 45lakhs.
A very interesting shift has been noticed in the millennial segment of home buyers. Studies suggest that 55% of the people who voted real estate as the best investment were aged 25-35. This class of people who earlier believed in liquid lifestyle is now ready to switch to safer options, like buying home.
Due to the drop in property prices, many people are taking advantage of the situation. Developers are under pressure to liquidate their stalled projects to start the flow of money. And many are offering amazing discounts and offers to attract customers. Residential property prices have dropped by 4-12% all around the country which makes it perfect to make a safe investment.
Due to loss in jobs and an insecure future, a lot of professionals who once moved to metropolitan cities to work are now coming back. This reverse migration has led to increasing demand in tier 2 and tier 3 cities. Lucknow, Chandigarh, Indore, Ahmedabad, Coimbatore, and Jaipur would benefit the most from this reverse migration of people.
Now, when the government is investing an unimaginable amount of money on the economy, the industry will get back on track. Various schemes like Pradhan Mantri Awas Yojana (PAMY) are being mortified and it can benefit the middle-class too. Together with this, banks are providing home loan rates at 7.15-8.15% which is the lowest in decades. All these agendas amalgamate and point toward one trend that is, ride in demand of mid-budget homes.
So, if you haven’t considered investing yet, now is the time to make decisions!