Housing Market Trends That Will Dominate In 2021

By Author: Dynamix Group
Total Articles: 23
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The world is still struggling to recover from the adverse effects of the global pandemic and the real estate sector is among the most affected industries. Since the outbreak of the virus, there had been a huge shortage of human labour and all projects were being delayed. This had led the real estate sector in a downward spiral. However, the industry is slowly picking up and is on its path to recovery.

In the past few months, the sector has witnessed a surge in buyers’ inquiries and interest. Although they were reluctant before, they have realized the value and significance of owning a house. Work-from-home, online education, etc. are a few factors that have impacted the decision-making process. If you want to buy a seaside home in Goa or any other place, you must have complete knowledge about the sector as well as the trends. Mentioned below are a few housing market trends that will dominate in 2021 and must be in your knowledge.

More Affordable Homes
Many new government initiatives have been introduced in the past few years to make homes more affordable. A large section of the Indian working population ...
... comes from Tier II and Tier III sectors. These people mostly rent a house in Tier I cities. Since the inception of the novel Coronavirus, many of them have been forced to leave the rented apartments and return home in Tier II and Tier III cities. This increased the demand for affordable homes in these areas.

Schemes like the Pradhan Mantri Awas Yojana Urban (PMAY-U) have been introduced to make affordable housing lucrative, not just for buyers but builders as well. This scheme provides various incentives to developers such as tax benefits, subsidies and institutional funding, etc. All these factors have opened up more opportunities for affordable housing.

Digitalization
With the world quickly moving towards complete digitalization, digital solutions were being embraced by all sectors including the real estate industry. It helped people to realize that there are various economical options available in hand to conduct various activities. The pandemic pushed the world to a limit where it seamlessly adopted digitalization and the real estate market is adjusting to it accordingly. Now, digitalization has taken over various real estate processes like capital deployment, transactions, virtual tours, property management, and even consumption patterns.

Big Cities Will Witness Flat Growth in Property Prices
In the 2010s, property prices changed drastically. However, the changes are under control from the last four-five years. Given the current situation, the conditions will stay the same in the coming time as well. But, one should not expect the prices to fall drastically either. The prices of the properties are expected to stay same this entire year.

Demand for Ready-to-Move-in Properties is Expected to Increase.

Most buyers will continue to prefer buying ready-to-move-in 2 BHK in Goa and other states instead of investing in under-construction projects that have huge chances of delay. Most buyers want to avoid this delay and hence, want to set up a safe and comfortable space for themselves as soon as possible.

Lower Stamp Duty Rates in Some States
The government has always been taking initiatives to attract more buyers. In the last year, many state governments have reduced the stamp duty rates. These include Maharashtra, Madhya Pradesh, and Karnataka. As a result, there was a huge spike in property registrations, especially in Maharashtra, before the pandemic. This has proved to be one of the best initiatives by the government to date. Following their footsteps, many other states like Uttar Pradesh, Haryana, and Punjab are considering reducing the stamp duty rates.

The future of the real estate sector strictly depends on how the budget will turn out. However, one thing is for sure that strong fundamentals are required to revive the real estate sector. To fasten this revival process, strong support is required from the government as well. If the government takes more initiatives, it will boost the sector and also, the overall economy.