The real estate industry is considered one of the pacesetters in the Indian economy. Besides agriculture, it is one of the highest employment generating sectors contributing about 7% to India’s GDP. However, in the past few years, this sector underwent several ups and downs. Due to lockdown, real estate properties in Kolkata were beset with liquidity issues and a shortage of labor.
As the nation is moving ahead by providing vaccines against the virus, things have begun to change. The year 2020 was meant to heal the Indian real estate sector. After all the highs and lows, the market is stabilized. However, people still fear whether they should invest in the real estate market or not?
This blog will discuss the state of the real estate market in 2021 and whether it will be wise to invest in real estate properties this year.
There is a sudden shift in consumer behavior since the pandemic. As a result, people’s expectations of the residential properties in Kolkata have changed. Interested buyers now demand maximum safety, proper hygiene maintenance, and captive amenities.
In this new normal period, work from home is the new norm. As a result, people are demanding more residential properties with dedicated office spaces. Considering the commercial real estate properties, office buildings outside Central Business Districts will gain more attention.
The lockdown taught us the importance of wearing a mask and proper sanitization. Customers will look for a property that follows Covid safety guidelines. There must be a medical center close to the residence.
Micro markets like Bhiwadi, Jaipur, Jodhpur, Gujarat, etc witnessed a huge demand for residential properties. Moreover, many real estate professionals claim that 2021 will be the year of emerging micro-market.
Thus, the need for properties in Jaipur and other cities will continue to rise. There will also be a demand for a 2 BHK property for sale in Kolkata. Therefore, if you choose to invest in the real estate market this year, you will surely enjoy a steady cash flow in the long run.
As per the Indian Prime Minister’s Atmanirbhar campaign, the residential projects will get policy support from the government. An increase in Foreign Direct Investment also indicates swift recovery. The pandemic might have caused huge destruction at the moment, but we should remember that every crisis looks small.
The Indian commercial real estate market attracts those who have their eyes fixed for the long term. The people who have already planned to purchase residential flats or plots will buy them against any situation. The 2021-2022 budget is just around the corner. The sector expects the government to introduce several relaxations that will boost the demand and grab the attention of more users.
This year, real estate investments ensure high yields. People can expect to experience a constant flow of investment as easy liquidity since global central banks are keeping a tight leash on interest rates. As per the report by Savills India, Indian private equity investment might recover incredibly and may generate a whopping $6 billion ingress in 2021, thus, recording about 30% year-on-year growth.
As the government takes up multiple development measures, a 2 BHK flat price in Kolkata and other metropolitan cities will be stabilized. As the demand rises in these areas, the real estate market may register increased profit. Thus, if you plan to invest in this sector, you may give it a shot.
The impact of Coronavirus on the Indian economy was devastating. But, with the introduction of vaccines, things will soon become normal within the next two years. The real estate sector might witness growth if the new budget inoculates liquidity in the industry and lowers interest rates.
The temporary stamp-duty cut by the Maharashtra government resulted in a gradual rise in demand. Moreover, the sector expects the government to pass GST cuts and tax exemptions in the new budget. Even if these remain for a short period, it will undoubtedly lead to the growth of real sector business.
Real estate sales and launches have shown significant growth post demonetization. One of the major shifts is an increase in demand for mid-range and affordable houses. Since the pandemic, people are more into buying their own homes rather than staying in a rented apartment.
In such cases, the need for affordable 2 BHK property for sale in Kolkata is rising. Luxury and high-budget houses seem to attract fewer people. Apart from this, the availability of flexible payment plans like NBPCs and digital lenders allow homebuyers to buy properties at lower interest rates and EMI.
People don’t prefer traditional lenders anymore. Other factors that led to the growth of the real estate sector are income tax rebates on home loans, no cost on floor rise, and discounts offered by realtors.
The real estate sector experienced major innovations in the last few years. The introduction of various reforms led to the exit of less serious players, providing a complete space for professional builders. Moreover, builders are striving hard by offering the buyers theme-based projects like comfort homes, senior homes, kid-centric homes, pet-friendly homes, and much more.
Homebuyers can choose projects based on their lifestyles. In addition, amenities like smart lighting, 24*7 CCTV surveillance, room inverters, clubhouses, swimming pools, gym, etc add value to the projects. Earlier, these were considered a luxury, but today, they are mainstream.
Amidst the rise in property prices in cities and static economic development opportunities, people are willing to invest in towns to enjoy a better property within budget. You will find affordable flats, plots, incredible infrastructure, and better career opportunities in such areas.
Moreover, you can invest in properties near the highway with all the amenities for a steady income in the long run and also earn an excellent rental cash flow. Since the plot prices are affordable in these areas, developers can construct high-quality homes at competitive prices compared to cities.
Real estate is local, and the prices are much affordable in some regions of the country than in others. For few areas, rising prices are making homes expensive for a potential buyer. This calls for a huge down payment and pushes down the purchase date for the buyers to save more before entering the real estate market.
Less interest rate cuts down the monthly mortgage payment on loans. Therefore, since interest rates are lowered, it’s more affordable to own a home today. Hence, it’s a less affordable time to purchase but a very reasonable time to own.
Right now, investors should be very cautious. This is because finding a budget-friendly home to repair and flip or buy and leave for rental income is quite difficult at the present moment. However, things don’t end here.
You can easily move forward if the property and location meet the requirements of your investment strategy. For example, if you want to buy long-term rentals, purchasing a 2 BHK flat in south Kolkata can be a brilliant move. However, you must rent a reliable tenant to support your monthly mortgage, taxes, and insurance.
No wonder real estate is the market for sellers. In addition, 2021 will witness a rise in demand for residential properties. Therefore, investing in this sector can be the smartest choice you will ever make. Overall, the market has shown a positive investor sentiment. So, if you are still planning to invest in real estate, then now is the right time to get started.
However, if you are looking for residential flats in Kolkata, dive into multiple service listing portals for your need. Search for the best residential apartments near you, and these portals will recommend you with top-rated flats as per your budget, location, need, etc.