The high inflation rate has resulted in a 10%-12% increase in building costs, affecting developers’ expected cashflows and project completions.
Real Estate Trends And Its Impact On The New Normal
The real estate sector in India has shown remarkable endurance in the face of the pandemic that struck the country last year.
The second wave of the epidemic has changed the environment for property buyers and investors in the country. A healthy lifestyle trend has prompted developers to refocus their efforts on creating projects that meet the expectations of a new generation of homebuyers. It’s critical to understand new real estate trends in light of this shift in sentiment.
Real estate is currently a buyer’s market
Consumer behavior and market mood are changing as the pandemic subsides, creating new trends in the sector. With a more refined understanding of their purchasing preferences, customers are increasingly looking for tailor-made services to help them make smarter financial decisions. Additionally, buyers have the chance to view and investigate projects digitally before making a purchase.
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Preference for more spacious, healthy residences
Houses with additional rooms like a workstation, corner for reading, or activity space are in higher demand. Since people are spending more time at home, they are looking for developments with well-designed apartments. Homeowners have had plenty of time to think about the value of their living space in the wake of the pandemic.
Wide range of infrastructure at your fingertips
Homebuyers are on the lookout for residences close to public transportation hubs including bus and metro stations, as well as taxi connections to the city’s most popular destinations and the CBD. Locations with a good balance of physical and social infrastructure, but at a lower cost than more expensive ones, have seen an increase in demand.
Popularity of read-to-move residences
Projects that are ready to move into or are nearing completion are more in demand than those that are still under development. Due to the pandemic and the need to be safe, buyers are keen to close on a house quickly. Villas are increasingly gaining popularity, as they fulfill the need for a solitary residence while also being part of a community
Reduction in interest rates & its positive impact on demand
The residential market is expected to see a significant uptick in demand as purchasers take advantage of lower-cost loans. The sector is still the safest place to put your money, and government programs that promise better, more stable returns are drawing in new investors. Developers who provide flexible payment arrangements are incentivizing homeownership sentiment as well.
Rise in the number of branded software developers
Preference is given to financially sound developers with a proven track record, strong execution capabilities, and high-quality projects that are rapidly acquiring market share. Buyers examine the brand’s history, performance, and standards, as well as the quality it provides and the delivery schedule it offers.
Real estate continues to show that investing in this asset pays off handsomely time and time again. Technology and innovation will propel the sector forward. This sector is expected to become a significant pillar in strengthening India’s economic growth as the pandemic is subsiding. Assetmonk is an online investment platform, offering real estate investment opportunities with an IRR of 14-21% in top cities like Bangalore, Chennai, and Hyderabad. Visit us to start your investments in some of India’s top real estate opportunities.
In the real estate business, contemporary trends include homeownership, digitization, and affordable housing. Distance no longer matters, as those who work from home don’t have to worry about commuting, and thus reduces the requirement to acquire a house close to where they work, which allows for investments in lower-priced tier-II cities.
In the wake of the Covid-19 outbreak, real estate has once again shown to be a sound financial option. The industry has seen positive change, making it an inflection point for real estate. Some of the most important elements to consider while investing post-pandemic include location, greater connectivity, social infrastructure, and lawful compliance are all factors to consider.