The future livability, growth of professional opportunities, and benefits like large open spaces, ability to stay close to family, low pollution, enhanced social and physical infrastructure, etc. are attracting homebuyers to State Capital and tier 2/3 cities. Low-interest rates and bottomed out property prices have accelerated demand.
Mohit Goel, CEO, Omaxe Ltd.
The real estate sector has shown indomitable resilience time and again and each time, the growth has been stronger. This year, the festive season is adding zest to it. The buyers consider the festive season as an auspicious time to buy their dream homes and this is set high growth prospects in the housing market. Besides, the pandemic has induced the realization of owning a house to ensure the safety and security of livelihood. Coupled with this, an amalgam of factors including health and wellness, comfort, security along with stable and guaranteed returns over investments, have also become the determinants that are propelling housing demand in this season.
According to the Industry reports, the real estate sector has recorded a strong rebound and housing sales have jumped over two-fold during the July-September 2021 period at 62,800 units across seven major cities. The surge was witnessed due to the better demand, driven by low mortgage rates and hiring in the IT/ITeS sector. People are also attracted towards the housing sector for investments as their savings have increased, better job security along with record-low home loan interest rates, and growth in homeownership sentiments. Incentives like stamp duty cuts in some states, and the availability of multiple and easy financing options are also leading to the boost in the residential market across cities. Real estate has emerged as a viable option owing to its relative safety and assurance of stable and regular returns. The pandemic has also led to NRIs eyeing investment in the homeland amid a sense of security.
Capturing the spirit of the festive season perfectly, the developers are leaving no stones unturned to offer maximum satisfaction in the customer-centric market. Bigger customizations with dedicated workspace, study rooms, modern kitchenette, fitness and entertainment zones, and balconies are dominating the consumer demands and developers are incorporating all these features in their residential offerings. Modern high-rise apartments, gated townships, and luxury towers with well-managed infrastructure have become the most sought-after choice driven by interests from NRIs, UHNIs, ex-pats, corporate professionals, millennials, and business leaders amongst others.
Even ready-to-move-in spaces will continue to remain the topmost priority of the homebuyers looking for quick possessions. The current sentiments are in favour of the buyers that have enabled the fence-sitters and even first-time buyers to go ahead with their purchase decisions. For them, the housing segment has remained the safest investment option and favourable government policies, lucrative offers are keeping the sentiments of the investors buoyed in the market, which is likely to continue in the coming quarters.
Moreover, the emergence of organized real estate market in state capitals and tier-2 cities has greatly improved the demand-supply ratio. As realty costs in tier-2 cities are relatively low than in tier-1 cities, there is a greater demand for quality housing in these markets. As per an Anarock survey, there is a demand surge in residential properties in tier-2, 3 cities including Amritsar, Chandigarh, Lucknow, Indore, Kochi, Coimbatore, Jaipur, and Ahmedabad which are set to become the destination-next of real estate.
The demand here is also fuelled by NRIs who now aspire to own a house in hometowns, which are mostly tier-2 and tier-3 cities. The future livability, growth of professional opportunities, and benefits like large open spaces, ability to stay close to family, low pollution, enhanced social and physical infrastructure, etc. are attracting homebuyers. The festive season is ushering in an auspicious period for all stakeholders with positivity and more capital to invest. The situation is under better control and the vaccination drives are giving confidence. The housing demand and supply will experience an uptick in the next quarters. The potential homebuyers can reap maximum benefits from the positive sentiments in the market supported by financial cushioning to make the best decision on their real estate investments.