Real estate has always been an important aspect of the Indian economy. Early this year, the industry had been predicted to reach $1 trillion by 2030, contributing 13% to India’s GDP by 2025. Despite the ongoing global pandemic, the real estate market has seen a surge in demand from investors. This can be attributed to the fact that real estate is a safe and secure investment that yields high appreciation. Besides, investing in real estate, properties by reputed developers like Shriram Properties is bound to give customers- the joy of owning their dream home at a lower price with many offers, including payment holidays. So, now here are some of the real estate market trends that buyers and organizations can look forward to in the coming future:
Demand for plotted land development
The demand for plotted land development has been increasing, and this growth does not seem to be stopping, despite these chaotic times. One of the many reasons for this trend is that investing in a plot of land provides high returns with minimal risk. In addition, the low initial investment and lower property tax, favor plots to be the desired investment choice. Trustworthy and reputed players like Shriram Properties are being preferred because of attractive offers, affordable plots with high appreciation value. Projects like Shriram Raynal Gardens and Shriram One City have garnered a huge response because of the same.
The perseverance of residential real estate
This lockdown has helped people realize the importance of living at home & a community that can be called their own. This psyche will be one of the driving forces in the future as buyers begin to accept and adapt to the new normal where they will continue to consider buying residential properties as the safest investment option.
With most asset classes not likely to give more than 6-7% return over the next 1 year, it makes sense to pay the same interest of ~6.5% (8.1% interest rate x 80% of property value) to own something that is a safe investment and useful for people now. Even as an investment, this will be a net rate of only 3% – interest payment of 6.5% p.a. minus the rental yield of 3.5% p.a. If this is not enough, renowned developers like us, Shriram Properties offer a payment holiday until 2021. From projects like Shriram Grand City in Kolkata, and Park 63 in Chennai, to Southern Crest in Bangalore – the response for these properties across the country act as an assurance that the market is only bound to grow.
Technology comes to the fore
The final trend that will drive individuals back to the real estate market is the integration of technology into everyday organizational functioning. Virtual property tours, like those provided by Shriram Properties, ensure customer’s safety while helping them buy their dream home or plots. This has displayed great promise as it attracts new customers in the post-COVID era.
As the real estate market sees major consolidation, loans get cheaper and interest rates get cut, there has never been a better time to invest in real estate. With growing demand, players in the space are motivated and continue to adapt to the new normal. This ensures that the road ahead for the real estate market is brighter, safer and better.