Affordable Housing Demand: The year 2020 was credited as the year of recovery for the real estate industry, particularly the housing sector. The real estate market had just begun to equilibrate after three years of slow business momentum caused by demonetization, the implementation of GST, and the realty law RERA.
All of these forecasts and assumptions were hampered when the novel Coronavirus struck the Indian economy, entangling the Indian real estate industry, as well as all other sectors. However, rising concern about the pandemic’s spread compelled the industry to accept the new normal and embrace digitization.
Organizations all over the world are adapting to the new normal and working from anywhere as the pandemic’s second wave arrives in 2021. This has resulted in an overabundance of Affordable Housing Demand and workspaces with ticket sizes ranging from Rs 35-50 lakh in Tier 2 and 3 cities/towns. This is one of the factors driving price and demand increases in those regions.
Finance Minister Nirmala Sitharaman announced some beneficiary measures for affordable and mid-range housing projects earlier this year. Although the pandemic’s second wave has recently swept many states, the housing market expected to grow in 2021. This will improve and elevate the current residential segment scenarios.
Home Ownership as a top-most priority
People have realised the value of owning property in the aftermath of the global pandemic. Salary workers were suffering hardships due to an unstable economy that caused frequent pay cuts, layoffs, and so on.
The demand for sustainable housing societies that take care of the entire family’s needs is another high consumer segment. Considering the current situation, such gated communities provide better social distancing facilities than apartments.
People between the ages of 28 and 45 are making a significant contribution to the Affordable Housing Demand in 2021. This age group has been inquiring and booking for 2020 and has also noticed buying gear this year.
Govt initiatives for affordable housing in 2021
For the past year, the government has been attempting to revitalise the real estate industry alongside the industry. The Union government was successful in providing a boost to the affordable housing sector in accordance with the 2021 budget. In order to benefit the weaker sections of our society, the Government launched the Pradhan Mantri Awas Yojana (PMAY).
The Affordable Rental Housing Complexes (ARHC) scheme, which is a sub-scheme under PMAY, has also proven to be beneficial to the urban poor population, as it aims to provide them with a decent standard of living. The scheme aims to provide adequate living conditions and security through the scheme.
Job security should be the most pressing concern during the pandemic. It has also influenced real estate investments, with people investing in affordable housing for future security.
With the economy picking up speed and momentum, and employees experiencing stability, the real estate sector expected to improve. Demand for all segments expected to increase. As a result of a rise in demand for properties, investors expect markets to resume in 2021.
Due to factors such as low interest rates, unsold inventories due to construction delays, and stress caused by the rise of Covid-19 cases, 2021 is seen as the best time to own a house, as all of these factors will have a significant impact on property prices.
Presently, the sector relies on offering consumers the best options for payment when they buy a home to recoup its losses. Easy and convenient payment options will entice first-time investors, and those looking for good investment opportunities will also benefit.