Is real estate the safest investment during this pandemic
Much has changed since December 2019 when Coronavirus brought countries across the world to a grinding halt within just a few months of its arrival. Across the world, the virus has shown its impact not just on health but also on economies, India included. Like many other countries, India went under a complete lockdown that affected many businesses, including the real estate sector. The ripples of COVID-19 effects reached the real estate companies in many different ways. Due to the lockdown, both, construction and sales activity within the real estate sector was put to a halt. On numerous sites, construction workers have gone back to their home towns which caused project delays between 4 to 6 months at the least. Many market experts have suggested that the crisis may affect the buyer's mindset and bring about great losses to the real estate market. But, real estate gods had other plans.
Among the Indian cities, Hyderabad ranks among the most competitive housing markets. In midst of the crisis, Hyderabad had seen a 76 per cent increase in residential sales in the third quarter despite the lockdown according to Knight Frank’s report in 2020. Not just in Hyderabad, there was a significant hike in the residential market according to Shishir Baijal, chairman and MD of Knight Frank India who said “Indian residential market has strongly rebounded over last three quarters with pandemic experience on owning house lower prices and multi-decade low home loan interest rate. Government interventions on stamp duty cut in key markets helped the sector gain momentum to pre-Covid levels.” Low-home loan interest rates and high tax exemptions have geared a change in consumer behaviour. In short, the Covid crisis has brought an undercurrent real estate boom.
Is real estate a safe investment during a pandemic?
Looks like it! The pandemic made people realise the value of homeownership in 2020. In a survey conducted amid the lockdown by Housing.com in collaboration with NARECCO, 53% of respondents said they would consider buying a property after a six months covid lockdown crisis. Nearly 33% of respondents said they are considering upgrading their homes to suit work from home conditions. 47% of renter respondents said they would like to invest in property if it was rightly priced.
Among the general population, people who reside in overcrowded dwellings have realised the importance of space. The Covid situation had made clear that the greatest risks of spreading infection come from people staying in overcrowded places. In a crowded dwelling, the best social isolation prevention practised by any individual is only as good as the worst prevention strategies practised by any other person living in the dwelling. This is also the case for people living in shared housing, particularly if it is a household of independent unrelated adults or a household of individuals with frequent travel requirements. Preventing everybody who lives in a shared house from going out, as well ensuring everyone practises appropriate social distancing measures, is difficult, and the more people living in a house the more difficult it is to control and enforce social distancing precautions. The current covid situation has shed light on independent space. Now more than ever, people are wanting to be more isolated by rejecting living in group households and, instead, living by themselves in separate apartments.
With many businesses unable to trade as usual due to the covid crisis, income levels of many families were affected for a sizable proportion. Many rental households were unable to pay their rent as witnesses in 2020. The Indian government announced a six-month ban on landlords evicting residential tenants who are unable to pay their rent due to the virus lockdown. Many renters during this period found a need to buy their first home in a more affordable market. The fear of repaying their ‘frozen’ rents once people are allowed to go back to work, pushed the renter population to consider owning a home instead of pooling all their hard-earned money for their landlords. So far, due to the second wave of the pandemic, the real estate community is hesitantly positive but cautious at the same time. Since the lockdown has been lifted, the real estate industry has witnessed a recovery. The collective experience of 2020 has taught us that the second wave of COVID-19 would have little effect on the industry. Even from the consumer point of view, people have realised the value of owning a home. At the start of the year 2021, the real estate community has refrained from aggressively promoted their projects assuming that the interest of the customers may not be as high due to the rising uncertainties of the second wave. However, the budget 2021 has brought good news for first time home buyers and an increase in buyer's enthusiasm proving that real estate is a logical and safe investment during the pandemic.
Vaishnavi Infracon- Where space meets sustainability:
Vaishnavi Infracon India Pvt Ltd has been proudly contributing to the development of Hyderabad using industry-leading project delivery and construction. Over many years, we’ve gained a reputation for completing projects on time and to the highest standard, with integrity, dedication and a passion for delivering the very best for our buyers. As a leading construction company, our portfolio spans large-scale projects, to small-scale projects across the city of Hyderabad.
We recognise the pulse of the people and deliver excellence with every project. With the Covid crisis hounding the nation, personal space is a priority more than ever. Hence, our recent sustainable project in Bandlaguda Jagir is spaciously spread over 4.10 Acres. Using leading technology and consistent innovation, we bring to you an environment that's safe and secure for its residents. The project is what's called comfort living without a compromise. The project boasts a health & fitness centre, round the clock CCTV security system, excellent waste management system, express supermarket, mini theatre, social and refreshment deck, swimming pool, outdoor and indoor sport areas, pet park, among many other urban amenities. The project is a world within a world ensuring its residents don't miss out on essential and non-essential activities in their day to day life even during the trying Covid times. The project is perfect for anyone who craves the promise of quality and a sustainable lifestyle with ultra-modern facilities.
Are you looking for sustainable living in Hyderabad? Please reach out to Vaishnavi Infracon India Pvt Ltd by writing to us @ firstname.lastname@example.org.