COVID-19 has affected all the business including the real estate sector, the commercial sector in particular has suffered a setback. However the situation is improving day by day and is much better than past few months.
Due to several government policies and relief packages the Indian Economy is reviving at a fast pace. Now more and more buyers are heading towards the housing sector.
Low interest rates and tax relief are some common initiatives taken by the Indian government. These relief packages also drive more foreign investment into the Indian Economy.
After the despondent time of lockdown, the real estate sector is improving and has emerged as the safest investment option in comparison to other sectors. The government has narrowed down its focus on the residential sector, according to a survey the reduced home loan interest rates are around sub-7 percent hence, giving an extra benefit to the residential sector.
RBI quotes and statements-
The RBI has predicted that in the first quarter of the next fiscal year, the growth could be 21.9 percent and overall 6.5 percent for the first half of 2021-2022. The RBI has quoted so, because of the base effect, as the economy contracted by more than 20 percent in Q1 2020-2021. They have also mentioned that it would continue to employ instruments to ensure sufficient liquidity.
Many real estate companies or developers are praising the government policies-
Harvinder Singh Sikka, MD, Sikka Group-“Since the government has reduced the home-loan interest. We have observed an increase in inquiries and the same will continue in 2021”.
Nagaraju Routhu, CEO, Hero– “Due to the reduced home loan interest and other relief packages by the government and builder the Tier II and Tier III cities have seen an increased demand in the residential segment”.
Hence, we can conclude that the real estate market, especially the affordable housing market will grow in the coming months, and there will be more improvement.