Ever since COVID-19 has laid its foot on the Indian soil, several sectors of the economy have suffered a big blow, including the real estate industry.
Pre-Covid, the commercial property market witnessed exponential growth. But the global pandemic has led to a change in the consumer behavior. The crisis has made people realize that the security of owning a home is much better than the uncertainties of a rented accommodation.
So if you are a home buyer who is fence-sitting if it is the right time to invest or not, then let us tell you that there has never been a better time in history to invest in a real estate property in Kolkata or any other metropolis.
Let us walk you through some full-proof reasons that support our claim.
1. Home loan interest rates are at their lowest – The RBI has benevolently lowered the repo rate to 4%, which has resulted in the home loan interest rate being the lowest in history. But if you are an aspiring homebuyer, ensure that your credit score is over 750-800 to avail of the best home loan rates and enjoy low EMIs throughout the loan tenure.
2. The scenario favors the demand side – On account of loss of jobs, delay in perks and promotions, and salary cuts, the personal finances of many individuals are at stake. So one out of every three buyers has either dropped the home buying plan or kept it on hold. Due to this, a wide variety of real estate properties in Kolkata and other major cities are available across all localities. So, with higher LTVs (Loan-to-Value ratio), lower property prices, and cheaper credit availability, the situation feels like a Godsend gift for the homebuyers.
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3. Lucrative schemes by the supplier side – Multiple lockdowns have caused the laborers to abandon the construction sites and flee to their towns and villages. It has caused the developers of real estate in Kolkata to revise their payment schemes and release attractive offers, subvention schemes, and discounts to drive sales. Some developers are also offering free cancellation, refund booking amounts, and cashback offers to buyers who intend to purchase during the lockdown. So if you have good negotiation skills, who knows, you may secure an attractive deal on your dream home.
4. The unconditional support of the Government: The Government has been quick to announce schemes to revive the real estate market. The Government has empowered the affordable housing segment by extending the Credit Linked Subsidy Scheme (CLSS) for the middle-income group up to March 2021 and has also opened a new investment class in the form of an affordable rental accommodation scheme for the migrant workers and urban poor. The pandemic-induced reverse migration will act as an impetus for the developers to expand their residential projects in Tier-2 and Tier-3 cities. Furthermore, the PMAY and the Nijashree Scheme introduced by the joined efforts of the Central and the State Government of West Bengal have accentuated the value of the concept of affordable real estate properties in Kolkata for all.
The Final Verdict
With the Indian Government preparing for mass vaccination and the resumption of normalcy, the real estate market is expected to bounce back with renewed vigor.
We strongly believe that now is a good time to invest in real estate, irrespective of whether you want to acquire a new property for self-use or increasing your wealth in the long term. But keep in mind that real estate is not a get-rich-quick game.
If you have the intent and liquidity to take a financial step, you must move forward cautiously. No matter what type of investment property you decide to put your money on, you must never underestimate the expertise of an experienced and knowledgeable real estate consultant. You can turn to us at PropShala for any property-related questions, and we promise to answer them as quickly and accurately as humanly possible.