One of the major reasons for the increased demand in the luxury and affordable segments can be attributed to the changing need and mindset of the people. The pandemic and the uncertainty that it caused has resulted in an increasing desire among people to own a house of their own.
With the COVID-19 pandemic appearing to have created several resets in real estate and the wider acceptance of work from anywhere, the demand for second homes has gone up.As many as 70 percent respondents want to invest in a second home priced at Rs 2 crore or less within two years, a survey by Savills India, amongst prospective homebuyers, has said.
With the festive season ahead, banks across India have started giving offers and providing concessions. One such phenomenon that has been going around recently is interest rates of home loans that find themselves at an all-time low across the country. One such recent entrant into the list of financial entities to slash their rates was Kotak Mahindra Bank.
Goa, the holiday paradise on earth has lately emerged as a holiday home and realty investment destination of India. Goa has consistently been a favoured vacationer goal for both domestic just as foreign visitors. Because of the development in the travel industry, the city has likewise risen as an investment destination for individuals for second home.
After one of the most tumultuous years in modern history due to the COVID-19 pandemic, homebuyers are on the lookout for larger, greener properties. They are also moving towards suburbs, secondary cities and vacation destinations world over. Vaccines against the virus will bring urban centres back to life and high street life is slowly coming back.
Your first home is where you live full-time—it is not an investment that you would earn from in the short term. With the Indian middle class and upper-middle class making more than ever before, second homes have continued to be a rage even during the pandemic. In many ways, the pandemic has pushed people to invest in a second home away from the city’s concrete jungle.
Owning a luxury holiday home in places like Goa is an increasing trend for buyers who look at it as a luxury living and also as a good investment option with better rental yields. Effects of the COVID-19 pandemic are abundantly visible across the various sectors of the global economy. India too witnessed a subjugation of macro indicators, that were once believed to be the fastest, and no sector was spared from the deluge of pandemic aftermath.
While not many Indians are buying, developers have seen a spike in enquiries and demand from non-resident Indians in the ongoing financial year. Developers say a weaker rupee, return of several Indians from Middle East and lower interest rates for housing loans are some of the triggers. As many as 40,000 NRIs could be looking to purchase assets in India. If this demand gets converted into sales once travel curbs ease, this could be a “historical high”, he said.
Contrary to fears and low expectations, real estate in the post-covid world will most likely survive and eventually thrive as an asset class, though it will look different. Decentralization, redistribution and restructuring will be the major themes of this transformation. While it is early days yet, there are visible indications of some of the ways in which the pandemic may alter things for both consumers and developers. It is important to note that the winds of change have been triggered not just by the pandemic.