The real Estate Market industry is one of the most well-known in the world. Housing, retail, hospitality, and business are the four subsectors. The spread/extension of this industry is aided by the expansion of the corporate environment, which has increased demand for office space as well as urban and semi-urban lodging. Across terms of direct, indirect, and induced effects in all sectors of the economy, the construction industry ranks third among the 14 key sectors. Future of Indian real estate market is said to be more promising.
After agriculture, the real estate sector creates the second-highest number of jobs in India. This sector is also likely to attract greater non-resident Indian (NRI) investment, both short and long term. The most popular property investment destination for NRIs is Bengaluru, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun.
Outlook on real estate market in 2021
Housing prices are still rising in double digits, but they have surpassed their maximum growth rates. Furthermore, compared to last year, the number of newly listed properties is increasing, and the rapid inventory reductions of recent months have slowed. As a result, the rate at which listing prices have risen has slowed. As supply grows, home prices will fall, but a significant price drop is unlikely.
Despite a decreased growth rate, the real estate industry is optimistic in 2021. The demand for property is projected to persist, with mortgage rates expected to remain below 5%.
Housing stats and Investors
Housing stats and prices are expected to remain strong in 2021, according to investors. New residential building has been rising recently, according to Census Bureau data. More than 1.6 million housing unit stats were recorded in the country by December 2020. (seasonally adjusted). That’s an increase of 5% year over year.
Following an 11.3 per cent gain in 2020, the median home price in California is expected to rise 8.0 per cent in 2021. Low borrowing rates are projected to keep driving up prices. The average 30-year fixed-rate mortgage rate in 2021 will be 3.0%, down from 3.1 per cent in 2020.
Working remotely will likely become more prevalent in 2021, and demand for cheap residences with ticket sizes under Rs. 40-50 lakh is expected to surge in Tier 2 and 3 cities, resulting in price increases in certain areas.
HDFC Capital Advisors (HDFC Capital) and Cerberus Capital Management (Cerberus) teamed in April 2021 to build a platform that will focus on high-yield possibilities in India’s residential real estate market. The platform aims to buy inventory and offer last-mile funding for residential projects still under development around the country.
Impact of covid -19 on the real estate market
During the April-June season of 2021, property rates in most Indian towns rose, owing to the second wave of the coronavirus epidemic, which put pressure on supply and forced builders to raise prices.
March 2021 witnessed more fatal cases of COVID-19 compared to last year. With people scrambling for healthcare, the real estate market has taken another hit, with partial lockdowns in places like Mumbai, Pune, and Delhi NCR. Buyers have withdrawn from site inspections once more, causing home deals to lag. Experts predicted that the market would fully recover in 2021 since inquiries, site visits, and sales had begun to approach pre-COVID levels in most locations. Industry experts believe that India’s recovery will be significantly contingent on handling the second wave of Coronavirus.
Coronavirus had such a suffocating effect on the Indian real estate market that it brought property transactions to a halt last year when the world was under lockdown between March and June 2020.
Just as it appeared that a recovery was on the horizon, the country was hit by yet another wave of the virus, this time even more deadly. Since then, numerous steps towards recovery are being taken care of. According to experts, India’s real estate market is on the recovery path and average house prices are set to increase in coming years(2022, 2023).
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