5 Reasons Why the Real Estate Sector is Set to Catch Up
The COVID-19 pandemic has shaken the world and the economies of a lot of countries. The method of the economy bouncing back and people finding a safe ground is something that is running on all minds. People are constantly seeking good news in the dark times that the year has presented so far. In all the frenzy to find a ray of hope, it is expected that the real estate market will experience good times in the future after the era of lockdowns is over. There are 5 main reasons why it is expected that people will start indulging in real estate investment in India in the times to come:
- Market Volatility:The volatility of a lot of investment markets has been exposed in the harshest manner possible and there are people that have lost a lot of money because the Sensex has been working in uncertain ways. People are desperate to find investment alternatives that help in providing some level of security in the form of more secure and permanent assets rather than fluctuating assets that are completely business market driven. When investors choose to put their money in flats for sale in Mumbai, they do not have to worry about their investments going kaput as they will still have something solid in hand that they can earn some money off.
- Influx of New Buyers:People that believed in living in rented homes will now seek to have an owned home that they can use for their own selves. A lot of horror stories of people remaining helpless and homeless in times of COVID have surfaced, teaching the importance of an owned home as opposed to a rented house. People now seek to buy their own house even if it is a 1 BHK flat in Mumbai.
- Reduction in Loan rates:A major motivation for more people to consider investing in apartments for sale in Mumbai is that there has been a god reduction in the loan rates, with the interest rates ranging below 8% in most financial companies and banks. The reduction in loan rate can be credited to the reduction in repo rate and reverse repo rates, which in turn helped financial institutions to work out new loan interest rates. Affordable loans are bound to make people consider investing in property rather than paying rents.
- Real Estate Pricing:No increase in the pricing of houses is another huge motivation for investors to put their money in real estate. The stagnation of pricing since last year increases the affordability of homes and people are able to buy flats in areas like Malad and Chembur or other suburbs that are viable areas for residential investments. In essence, the lack of increase in prices can be directly considered as a 20% discount in home prices.
- Added Income:The COVID pandemic has affected the job market in a bad spot and people with secure jobs are also now looking at alternatives to earn an extra income. With the help of real estate investment it is possible to ensure that a second source of income is established. Even a 1 BHK flat in Mumbai can prove to be a safe income source in times when lay-offs are expected to become a norm.
It can be concluded that the pandemic has increased the chances of people putting their money in home spaces rather than any other source of investment. It is safe to say that there is probably nothing better than buying an apartment for sale in Mumbai in the present times.