A Perfect Time To Leap Towards Your Dream Property

Owning a home has always been synonymous with safety, security and stability in a plethora of aspects. As a basic necessity, each individual has always longed for having a home of their own. The sentiment of having a safe place to reside in further emerged stronger with the aftermath of Covid-19 pandemic. With a paradigm shift in our work culture and being locked indoors for quite a long time, the home became the epicenter of all major activities. Customers started opting for properties that offer them just the right degree of privacy, security as well as a comfortable space to work in.
In addition to that, with the changing market landscape, the sector witnessed a variety of consolidations. This played a very crucial role in enhancing the trust factor amongst the consumer segments, who were earlier reluctant to purchase a property due to lack of assurance regarding the delivery timelines, the quality and the amenities as promised by the concerned developer. Coupled with the increased desirability towards home-ownership, the trust that is further strengthened with the consolidations has provided a boost to the sector.

Besides, the lowest ever interest rates and the reduction in stamp duty by the Maharashtra government have also given the much-needed impetus to the real estate sector.

With all these factors, people are considering owning a house as the best bet - not just from an emotional point-of-view but from an investment perspective as well. Considering the current market scenario, instead of looking for investments with quick returns, people are choosing long-term investment plans like investing in properties. The major reason being real estate is less volatile than other asset classes and also the value will only appreciate over a while.

A recent consumer survey conducted by a leading real estate firm states that 52 per cent of the recent home buyers are millennials. These aspects combined will increase the structural demand for housing in the country and keep it high in the coming times.
Moreover, the alterations in lifestyle have led to a significant change in consumer preferences. Developers are on the go to offer the best options and fulfill the evolving consumer demands, making the time favorable for home seekers. The consumer-sentiment survey conducted by the real estate developer to analyse the choices of present-day home buyers also highlights that 61 per cent of respondents consider purchasing a home with the purpose of end-use. The majority of the consumers are looking for an upgrade in lifestyle, and thereby seeking gated developments with round-the-clock security, integrated solutions, world-class amenities, and bespoke experiences. With the prevalent work-from-home situation, buyers are now looking for bigger homes with the presence of more green, open spaces.

Also, consumers have shown a strong inclination towards ready-to-move-in properties, majorly due to its factor of convenience, its backing of ‘what you see is what you get’, and the flexible payment plans. With ready units emerging as the best choice along with the favorable purchase options, there is going to be a demand-supply crunch in the market which will further lead to an increase in the prices.

Given this growing demand, the real estate industry is going to be a pivotal player to bring the economy back on track. According to a recent report by Ibef.org, the real estate sector is expected to contribute 13 per cent to the GDP of the country by 2025, indicating that the economy is poised for a real-estate-led revival.

Since the perception of a home has changed beyond just a place to relax, consumers are now preferring to own a home vis-à-vis renting, and are willing to spend for their dream home. A recent FICCI-ANAROCK report states that the new breed of buyers prefer to deal with branded developers since they provide timely delivery and ensure the surety of investment. With bigger players in the market now, the interest will continue to prevail for longer, eventually boosting the housing market.

There is a long-term positive outlook for the real estate sector. Insights from a recent report by Jefferies highlight that a new residential cycle would become evident over 2021 as both end-users and investors are getting back into action. Residential sales could double up year-on-year crossing 2019 levels, inventory might fall to an 8-year low by end'21 and prices are expected to rise by 10 per cent over the next two years, as per the research report. In the coming times, the housing market is certainly a bright spot amidst the Covid-19 induced economic crisis making this the perfect time to leap towards the home you had always dreamt of.

The author is Founder & Investment Specialist, Simple Solutions 4U

DISCLAIMER: Views expressed are the authors' own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.