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The real estate industry has been forced to face numerous uncertainties, following the COVID-19 pandemic in 2020. However, positive signs are visible for the sector in 2021, as it looks to overcome the turmoil of 2020, with a number of constructive steps taken by the government to revive it.
Property prices likely to remain constant
Many experts maintain that 2021 is likely to be the best time to buy a house. Factors like low interest rates, unsold inventory due to construction delays and the distress caused to the sector by COVID-19, will have a major impact on the property prices. This was highlighted by global investor and author Ruchir Sharma in an interview on January 9, 2021, where he said: ‘Great time to buy a house taking a fixed rate mortgage, because interest rates are likely to go up over the next few years’ – Source: NDTV.
Low interest rates to propel demand for housing
The Reserve Bank of India (RBI), in a bid to boost the sector has kept the repo rate unchanged at 4% for the fourth time in a row in its bi-monthly monetary meet held on February 5, 2021. Prior to this, the repo rate was at 4.40% for the month of March and April 2020. The result of the unchanged repo rate had a visible impact on most banks’ home loan rates, which were reduced to 6.75% – 9% in the second half of 2020 from the highs of 8.05% – 12% in January 2020. Buyers looking to benefit from the low interest rates must hurry up.
Reducing stamp duty charges to boost housing demand
With an intent to boost housing demand, Maharashtra was the first state to reduce the stamp duty to 2% from 5% till December 31, 2020 and to 3% from January 1, 2021 to March 31, 2021. Madhya Pradesh reduced the stamp duty to 1% from 3% for urban areas and Karnataka to 2% from 5%, in an attempt to increase the housing demand. Following suit, UPRERA chairman Rajiv Kumar has written to the Uttar Pradesh government, recommending a relaxation in stamp duty to 2% across the state – Source: Financial Express.
Easy payment options and discounts for home buyers
The sector is currently looking to overcome the hiccups of 2020, by providing customers with good deals and easy payment options to buy homes. Easy payment options will attract first-time home buyers and people looking for a good investment option, will also seize the opportunity. Home buyers seeking a good deal on payment options, do not have to look too far. Wave City’s Dream Homes, located on NH-24, Ghaziabad, offers the perfect deal with easy payment options to own a beautiful house.
Real estate has gone through several tumults in 2020 but the future looks bright and in 2021, the sector is poised to grow at an impressive rate, contributing to the overall economic growth of the country.
(The writer is with Wave Infratech)