Impact of COVID-19: Homebuying emerges as the safest and most lucrative investment option
Even though the year 2020 is coming to an end, the world is still trying to comprehend the aftermaths of this unprecedented year. Since December 2019, when the outbreak of coronavirus started, the world we knew has drastically changed, India included. Where the last quarter of FY 19-20 indicated a positive recovery trend from the economic slump due to the reformative economic and policy reforms introduced by the central government; the economic lockdown induced by COVID-19 brought Indian economy to a staggering halt. The aftermath of this economic lockdown led the investor community to re-evaluate their options. Just like several sectors, the real estate industry was badly affected as well. Some even might say that it was the most challenging time faced by the Indian real estate sector.
Amidst these volley of changes, COVID-19 has highlighted a couple of major factors for the prospective homebuyers and the millennial community, who have emerged as the new set of homebuyers in this time. These factors being
- The importance of owning your own home.
- How buying a home is a good investment option.
- A home with well-planned facilities and nearby conveniences is of prime importance.
With the biggest hit faced by the healthcare sector, being safe and secured under one’s own roof during the pandemic-induced-lockdown was the primary need of every individual. Hence, owning one’s own home has become of paramount importance and topped the investment list of options that assuringly safeguard the interest while bringing in the anticipated value addition.
Though buying a home has always been an important part of the investment strategy, COVID-19 has shed new light on the value proposition of investing in real estate for potential homebuyers. When the rest of the investment options were volatile, homebuyers found real estate to be the investment asset class of choice because of the capital appreciation offered by homes, combined with the rental income option (a good option for both homebuyers and investors in short term as well as long term scenarios.) In recent media reports, a survey was conducted to find the most preferred mode of investment. About 35 percent of the participants chose real estate, 28 percent went with gold, 22 percent with fixed deposits and 16 percent with equities. This clearly shows, even amidst the prevailing uncertainties, homebuyers have positive sentiments towards real estate.
Adding up the innovative fiscal measures implemented by the government and apex bodies to deal with the liquidity funding crisis like slashing interest rates to a historic low, reduced home loan rates, reduced Stamp Duty at the state level, advanced outlays of the PMAY-U, extension of credit guarantee scheme and the impetus to the affordable rental housing. Indian real estate sector just like the country’s economy is consumption driven and the festive season stimulated the demand for housing in conjunction with the favourable market conditions. The improved home sales with enhanced property registrations media reports nudged the ones who were on the fence to buy their own homes and get converted to actual homebuyers. Though some of the requirements of homebuyers which topped their list to find the perfect home were:
- Home layouts that encompass the work\study\wellness from home culture while promoting walk to work culture.
- Demand for extra flexi space and luxury homes to upgrade their lifestyle.
- The need for home automation and technology-driven amenities expressed by the new-age homebuyers.
- Prime importance to sanitation and hygiene practises along with the need for better ventilation, natural light and services like uninterrupted power supply, fiber optic internet connectivity, etc.
Additionally, the geopolitical uncertainties, currency depreciation and volatility of other investment assets made real estate a safe bet investment that attracted the NRI communities all across the globe, providing them with a safe nest back home. The homebuyer profile saw a gradual change with renters and female buyers choosing to buy their first home and they are expected to be the largest homebuyers segment in the FY 20-21.
The Hiranandani Group has been modifying the home buying experience for potential homebuyers throughout this lockdown by creating a one-of-a-kind user experience website, https://www.hiranandanioffers.com/, for online booking, virtual site tours, details about all the offers, and real-time updates on the available inventory with price sheets, all at one place. The group has been dedicated to help everyone find their safe haven by introducing lucrative offers and a lifestyle that befits their needs and desires at their award-winning projects in Powai and Thane.