Real Estate Prices after COVID-19 With Freebies
Like every other segment of the economy, the Indian real estate sector too is reeling under the deadly impact of the coronavirus pandemic. While luxury housing may see a 20 percent reduction in prices, developers would offer freebies to buyers investing in the mid-segment. These may range from deferred payment plans to even a free Corona insurance that may address their fears of a job loss. Affordable housing may see a moderate price correction of 5 percent and also a fall in volume. A report by HDFC Securities had noted that large NBFCs expect further 20-25 percent cuts in the real estate prices and a 25-30 percent dip in volumes for the financial year 2021 along with fiscal incentives like stamp duty waivers. This shall aid demand recovery. The market may consolidate in the hands of select large organised developers with strong balance sheet and access to bank funding. JDA/JV model will continue and land buying will take a back seat. Launches will get deferred and focus will be on completing existing unsold area.
Tags : News/Views Developers Real Estate HDFC NBFCs mid-segment COVID-19 Launches JDA/JV model Freebies