The year 2020 brought some unexpected situations before the real estate property market. Due to the pandemic situation that hit the entire country, the market was hobbled by a cash crunch. Although the prices of properties mostly remained unaffected in big cities, the prices of houses slumped by 5% in many small cities. Due to the pandemic situation, several housing projects have stalled as there has been a huge shortage of construction workers. Plus, there was a fall in real estate investment because of a shortage of funds among investors.
For now we can see that the real estate market has started recovering itself, but it seems that the coronavirus pandemic will have long-lasting impacts. In this write-up, we have described few trends that might be really common in the year 2021 –
1) Higher Demand for Properties
In 2021, there are high chances of seeing a huge growth in job opportunities across various sectors. As a result of this, there will be an increase in the migration to cities. Therefore, rental homes and ready-to-shift properties will have a higher demand. The real estate builders will come up with new township projects. With the development of new township projects, the cities will grow wider the real estate infrastructure will continue to grow faster. The improved infrastructure and road connectivity will also suggest that there will be a higher standard of living.
2) Reduced Home Prices
In 2021, India might as well witness an increase in construction activities. With more under-construction and ready-to-move houses available for sale, the real estate developers will face the challenge of selling their properties at the right time. Therefore, they will have to quote their flats and houses at competitive rates. This suggests with more supply, the prices of real estate properties may go through a low period.
3) Increased Real Estate Investment
In 2020, many big investors found that real estate investment is the best in long run. The share market crash has changed everyone’s mindset. The good news is that the year 2021 will offer numerous investment opportunities. Right from low-cost studio apartments to luxurious bungalows and penthouses, investors can easily choose a property that will work well with their investment plan. Investing in ready-to-shift properties will provide a huge opportunity for earning rental income.
4) Rise in Emerging Micro-Markets
In 2021, many small cities will grab attention from real estate investors. Cities like Surat and Halol in Gujarat as well as Ajmer and Kota in Rajasthan will witness huge demand for residential homes. As a result of this, the income of people living in these cities will increase. Moreover, there will be a huge development in infrastructure.
5) Increase in real-estate sales
By the middle of 2021 there will be growth in real estate sales. The buyers will mostly purchase affordable houses. But the demand for luxury and high-end properties will also increase. Moreover, there will be an increased demand for theme-based real estate projects, such as comfort homes, kid-centric homes, and retirement homes. When it comes to choosing the amenities, buyers will mostly prefer homes where they can maintain social distancing while leading a comfortable lifestyle.