The current lockdown & coronavirus crisis has severely affected the world’s economy as well as most of the sectors across the globe, including real estate. However, there lies an opportunity in every crisis, and Covid-19 looks no strange.
(ANAROCK Consumer Sentiment Survey Report)
-All industries, including the real estate sector in India, are now earnestly working to innovate and strategize their business. Among the notable vital drifts, the residential sector is all set to begin on a different & developed trajectory with ‘home ownership’ realising important choice among the new-age millennials and Covid-19 hasn’t sunk the need for affordable homes.
-Further, a majority of respondents now regularly favour risk-free investments. Also, online home sales will start to obtain traction, and leading realtors with an excellent track record will be the primary inheritors of this change.
Let us run through some trends-
1) Homeownership is a new preference-
Covid-19 has somewhat altered the way millennials are imagining now. Out of all members, voted for real estate as the best asset class for investment, at least 55% were in the age bracket of 25-35 years as against 42% in the previous survey. Interestingly, 68% of all these millennials are end-users. Assuredly, physical assets render the highest feeling of safety, particularly during emergencies such as Covid-19 or during stock markets plunge to new lows, and financial markets witness a disturbance.
2) Tangible assets & lower home loan rates are the essential factors defining the change
Out of all the members who were earlier in no desire to acquire a property, now have changed their choice during the lockdown period, a mountainous 92% mentioned two significant causes for this unexpected change:
-A sense of security that tangible assets provide during such urgencies &
-Lower home loan interest rates, which are currently at an all-time low, varying between 7.15% and 7.8%.
3) The market for affordable homes is still in bloom in Covid 19-
It was broadly assumed that the affordable segment would be the most unfortunately affected in 2020 due to Covid-19, as interests over its target audience’s limited income and worry of unemployment remain to rise. However, it doesn’t resemble so. It is also probable that in the current Covid-19 situation, many customers having a bigger budget earlier would have reduced it. Many would not want to lock-in a large amount of money in such unpredictable times. Instead, they would buy a more realistic house based on their current requirements only.
4) Over 34% of investors favour Ready to Move in homes-
In a notable trend seen during Covid-19, unlike before many respondents inquiring property from an investment prospect, favour ready-to-move-in homes. As many as 34% prefer ready homes over under-construction ones, apparently because construction activity was completely halted across the country, leading to project lags by several months.
About S.G. ESTATES PVT. LTD (Formerly known as SG Estates Ltd) –
SG Estates has manifested its presence in North India significantly in Delhi/NCR since 1986. The organisation delivered a series of housing projects under SG Impressions, erected SG Impressions Vasundhara, SG Impressions Dehradun, SG Impressions 58 and SG Impressions Plus. The projects have been completed and happily delivered to the customers. Currently, SG Oasis in Vasundhara, SG Benefit in Govindpuram, SG Grand Phase 1 in Rajnagar Extension, in Ghaziabad are ready to move-in homes & few successfully delivered. SG Grand Phase 2 and SG Shikhar Height are the two on-going projects established in the prime regions of Ghaziabad at Rajnagar Extension and Siddharth Vihar.