The COVID-19 pandemic has sent shockwaves across the world’s markets, and the real estate industry is no exception. It has impacted the economic conditions of most of the population, leading to a slowdown in demand. The housing industry in India witnessed a weakening of order since the pandemic hit the entire nation. As per various surveys, the sales of housing properties have been relatively low since 2020, with only 12,730 units being sold in Q1 of 2020. This made home buying easier in 2021, with the industry gradually returning to pre-pandemic normalcy.
In this scenario, the following factors are making home buying easier.
1. Interest rates at an all-time low:
Investing in a home means most people avail themselves of a home loan. The reason for worry always seems to be high home loan interest rates. But after the pandemic, it is not necessarily so. In the last two years, we have seen a decline in interest rates, which has yet to be followed by a rise in rates. Unless the RBI decides to alter the situation, interest rates will likely continue at their current low for some time. This has made home loans affordable for most home buyers.
2. Incentives to the homebuyers:
Some sellers offer schemes like “No equated monthly installments (EMIs) until possession.” While this doesn’t mean ignoring a home loan EMI calculator, it makes the process more pleasant. For instance, stamp duty was temporarily removed in two phases in Maharashtra to further encourage the real estate market. Such incentives would mean additional savings and ease for people planning to invest in real estate.
3. Remote residential projects have taken over:
With the increase in the number of people working remotely in 2020, people have gained the confidence to own or expand their present home to a bigger one. It has been observed that the demand for 3BHK units has risen since the pandemic. This is a response to the “stay at home” situation prevailing in recent times.
4. Women have added benefits:
If the buyer is a woman, paying a percentage point less in stamp duty in 2021 is an added benefit. This applies to states like Maharashtra, Uttar Pradesh, Bihar, Haryana, Punjab, and Delhi. Most lenders have also reduced the home loan interest rates for female borrowers. These benefits continue to ease the availing of home loans.
5. Expanded network of RERA:
RERA stands to protect buyers’ interests and help them proceed with purchasing their dream home with confidence. With every year, more developers are coming under RERA compliance. So, the reliability of projects has increased, making it easier for a homebuyer to decide.
Buying a home is an important decision, and personal preparedness is crucial. However, considering the above factors, it may be profitable to buy a house in 2021. So, if you have always wanted to buy your dream home, there’s no time like the present.
