Covid has played a huge role for the fence sitter to buy a house at the first opportunity in the affordable housing sector. However, demand never slowed down in the luxury housing as this category involved lots of planning from the buyers end. If stock market is considered one of the indicators, real-estate stocks are upbeat and has seen a return of almost anywhere between 50-75% in last few months.
India real-estate sector has never ever seen so active in the last so many years. There are multiple reasons for the sectors which is driving this demand. Let us try to understand the reason behind a sudden surge in the demand post second lockdown.
Government’s policy for housing for all by March 2022 is one of the major push behind all the hype in the sector. No doubt it is an ambitious dream by the Government of India. But the real-estate housing sector doesn’t need any assurance, it runs on the sentiment. If the sentiment is positive in the economy the real-estate sector is going to boom. The RBI no rate change policy and low rate is also rubbing the sector in a perfect way towards higher growth.
The worst is NOT over
There is notion among masses that there will be third wave and a fourth wave of Covid which is adding fuel to the buying sentiment in real-estate. This was another reason people just went out of the houses to breathe to various hill stations after the second lockdown was over. Millennials who believed in living today; suddenly house became a priority for them. They just do not shy away from taking loans either for buying a house or a car. It clearly indicating a hot property buying season.
The festival season is round the corner, with Rakhi, builders have already started doling offers. Such are the lucrative offers that on buying a flat worth Rs50 lakhs, one can have a chance of winning a car worth same amount and only 20 people competing for the car. Means after every 20 bookings a draw will be held. Who will not try their luck with such offers?
The migrant population in Delhi NCR, even in white collar jobs have faced the music from owners. This league of people is ready to stretch their resources to own a house in NCR at whatever cost. Lower loan rates and good credit score are aiding them further.
This conscious buyer is up for good deals coming their way during this festival season. We have to wait and watch all the action happening in this space by the end of this financial year.
The author of this article is Divaker Bhalla, CEO- DNA Ventures Pvt Ltd
The views and opinions expressed are not of IIFL Securities, indiainfoline.com