WHAT WERE THE REASONS FOR RECORD SPIKE IN PROPERTY SALES DURING THIS FESTIVE SEASON?
This festive time, the real estate sector betted big on it as this was an opportune time to clear the unsold inventory and recover most of the losses suffered during the Covid-induced lockdowns. Housing sales have picked up due to a host of factors, including the rising demand for bigger and spacious homes. Additionally, the market continues to be a buyers’ market where the interest from end-users is driven by the availability of suitable deals in cities as well as key micro-markets. On the various festival occasion, we always bring out lucrative offers like- fully furnished home, electric vehicle or Gold for people looking for a new home or investment opportunities. In terms of products, currently bigger house or penthouse are most sought after.
WHAT ARE THE CURRENT CHALLENGES OF THE REAL ESTATE SECTOR?
The Indian real estate has been facing multiple issues. It is high time that government provides immediate solutions to the problem faced by the developers and home buyers. Some of the problems in the real estate sector are-
- Unavailability of land - through land regulations, land readjustment and land pooling policies, the government should spare large share of underutilized and vacant, land parcels.
- Long pending infrastructure projects - The reason for delay in completions is either the project does not get enough funding or there is a lack of technology to complete this project on time.
- Overpopulation -More than 50% of people are in urban centres and tier 1 cities. India needs more new cities and urban centers on a mass scale.
- Overrated building techniques- The Indian estate sector is still dependent on old building techniques. Today it is very important for developers to rely on modern building techniques which will help reduce construction time and cost and deliver faster.
REAL ESTATE INVESTMENT IS ADVANTAGEOUS BECAUSE OF THE HIGH RoI, BUT ONE NEEDS TO IDENTIFY THE RIGHT PROPERTY. WHENEVER THE STOCK MARKET OR GOLD IS LOW, REAL ESTATE WILL STILL YIELD GOOD RETURNS IN TERMS OF RENTAL INCOME AND A STEADY CAPITAL APPRECIATION. TAX BREAKS AND REDUCTIONS ARE OTHER BENEFITS. ALSO, REAL ESTATE INVESTMENTS PROTECT AGAINST INFLATION BECAUSE WITH RISE IN PRICES, HOME VALUE AND RENT AUTOMATICALLY INCREASES.
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