INDIANS, HOUSING OBSESSION AND COVID-19
Indians and their obsession with investments in the housing sector is a trend without any parallels. Ancient Indian Civilizations have always boasted of their real estate, Well planned cities with stone roofed houses and drainage systems. It wasn't long before owning a house became prestigious and marked your social status.
The 21st century brought a massive shift in population due to migrations for jobs and a better lifestyle. Real Estate sector saw the rise of commercial housing segment. Future demands pushed the needle towards a requirement for affordable budget housing, luxury housing, co-living, co-working, etc.
Drawing the China Parallel
When Chinese authorities lifted the shutter on businesses in march, the top 30 cities oversaw transactions over 6.27 Million sq. Ft of land. Realtors are happy as customers are available in good numbers.
Projects are now being put under the government's watchlist for price corrections. Authorities are placing caps on selling price of projects, sometimes lower than market value to benefit the customers.
How prepared is India?
Reserve Bank of India has taken some exemplary steps to combat the liquidity crunch in the market. Allowance of construction activities during Lockdown 3.0.
Here are a few links for a detailed read
What's in for the Customers?
- Lower Interest Rates
Be it home loans, personal loans or business loans, the effect of COVID-19 will bring in the benefit of reduced interest rate to the customers. We can already see Indian Banks giving credits at Interest rates of as low as 6%. This will surely supplement the buying capability of a lot Indians.
Now, all we can do is wait, for the lockdown to end. See India pick up from right where it stopped and thrive.
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