Home Buying Trends in India to Behold in 2021
The world is avidly hoping for the year 2021 to be a fresh breath of happiness, health, and prosperity- a far cry from the COVID-19 pandemic-inflicted 2020. Like most industries, the field of real estate has also been affected by the pandemic. A slowdown overcame the home buying and selling process in most parts of the world, including India.
As it is, the real estate industry in the latter half of the past decade was already in the throes of a slowdown in India. The close of the previous decade, i.e. 2020, was the peak in the real estate industry slowdown. It has resulted in phenomenal ups and downs in home buying trends in India, which are expected to stay for a long time.
Here’s a glimpse into the trends slated to mark home buying in India:
1. Shift towards Buying Property Instead of Living on Rent
2021 is witnessing a major surge in home buyers opting to purchase property instead of going for rent. The pandemic has played a key role in this shift in homebuyers’ preference for buying their own property. Property developers and sellers are recording a substantial increase in the sale of ready-to-move-in homes. This home buying trend indicates that people want stability to be able to secure themselves in uncertain times like these, which living on rent cannot grant.
2. Customers’ Market
2021 is witness to homebuyers reigning supreme and the real estate market becoming their market. Rates of property, as well as home loans, are at an all-time low with bleak chances of recovery in near future. Property sellers are going all out to woo homebuyers with irresistible deals and offers by lowering the rates of the property considerably to generate sales and business. Homebuyers are made to feel spoilt for choice so they don’t feel overburdened about buying property.
3. Low Property Rates
Since the past year, property rates (residential as well as commercial) have fallen colossally. Buyers who have been keen on buying property all along consider the current phase the best time to buy a property. They are willing to stretch a bit and go the extra distance to make the most of the drastic fall in property rates, which will increase in due course.
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4. Low Home Loan Interest Rates
Financial institutions offering home loans have slashed home loan interest rates massively so that homebuyers find it manageable to procure home loans. With uncertainty in job security and pay cuts becoming the order of the day, homebuyers have naturally been wary of buying property. Lower home loan interest is offering much-needed respite to homebuyers.
5. Preference for Spacious and all-inclusive Spaces
The pandemic phase has seen the emergence of the ‘Work from Home’ arrangement, which, in all likelihood, is here to stay. Professionals working from home felt the need for having dedicated space in their residences for doing office work. Those who have decided to buy their own residential property in recent times are looking for bigger homes where they can accommodate their own work corner. Moreover, in several families, more than one member is working. That means all of them to need their own space to work. Investing in a bigger property that provides adequate space and privacy to all family members is the best alternative for them.
6. Preference for Ready-to-move-in Homes
The last thing home buyers want is to invest money in an on-going project that may not be completed in the estimated time. Chances of delay in getting possession of a house have increased even more now due to the pandemic. Homebuyers are therefore showing interest in ready-to-move-in homes so they won’t live in the shadow of uncertainty.
7. Improved Governmental Support
To provide relief and enable homebuyers to acquire property, the government has introduced several initiatives and schemes in recent times. Reduction in stamp duty in various states is one such scheme for instance. It has brought much-needed financial relief to homebuyers at the time of buying property. Such initiatives on part of authorities have resulted in brisk sales of residential property as homebuyers can save a considerable amount of money.
These home buying trends in India offer a glimpse into what astute homebuyers are doing to brave the challenges and move ahead judiciously.