Chandigarh [India], October 28 (ANI/PRNewswire): "The adage that there is always a silver lining even in adversity is coming true for the Indian housing market. The COVID pandemic has made people realize that home is the safest place to be, which is giving a substantial boost to Residential sales in the Metros and generally across the country," Jatin Mohan Seth, Director of Chandigarh-based Family Nest Real Estates Private Limited, said on Tuesday.
"The value of houses sold in the Top-Seven Cities in Q3 2020 collectively rose to Rs 29,731 crores against Rs 12,694 crores in the preceding quarter - a significant jump of 134 percent," he said. "Housing has long been considered a safe and even profitable investment, but the COVID pandemic has added a new element that is pushing housing sales: Personal and Family health security," added Jatin Mohan.
Mohan explained that Homebuyers are also making the most of record low Home Loan Rates, Discounts and Incentives offered by Developers.
"Lower taxes, including no Goods and Services Tax (GST) payable on resale flats, are also pushing the demand for Ready-to-Move-in Houses," he said.
Even beyond the major cities, green shoots are visible in the Sector as Home Sales Registrations have increased, providing more evidence of improving Homebuyers' sentiments and overall gradual revival of the sector. "The upcoming Festive season will give further impetus to sales," he added.
Providing an International perspective, Texas-based Professor Emeritus Kuldip R Rampal said that Indian Realty Developers broadly have long suffered from perception and credibility problems. "Instances of duping customers financially, lack of transparency in project features, uncertain delivery schedules, questionable commitments to post-delivery warranty obligations and liabilities, and the quality of customer service have all adversely affected, if not eroded, customer sentiment towards property Developers."
"Fortunately, the enactment of RERA by the NDA government has ensured that there is the much needed transparency in the Real Estate Sector. Undue project delays and other problems associated with the Sector should be largely addressed by this Act," he said. "This is one major reason that Customers' confidence to invest in Housing, even during the pandemic, has jumped substantially," he said. "When you take into account all the positive factors associated with the Housing Industry now, it is the perfect time to invest in India.
"Little wonder that NRI buyers are thronging the Indian Realty Market as it is obvious from various published reports," said Rampal.
The Financial Express newspaper reported September 17, 2020, that the current NRI investments in India will hit an all-time high of USD 13.1 billion in FY 21.
"I feel Indian government has been supportive and has come up with a slew of measures to support the Real Estate Sector. The clarion call towards 'Local for Vocal' by Prime Minister Shri Narendra Modi has boosted the consumer sentiment towards Indian companies with sound credentials. Also, the entry of large corporates and consolidation have led to the expansion of the Indian Property market with the value of Real Estate under construction jumping over two-fold to USD 243 billion in the last one decade, according to a report by FICCI," Jatin Mohan Seth added.
"It is all turning out for the good. I have noticed that even young professionals are considering buying Houses for both personal use as well as for investment. Well-travelled, business-savvy millennials are now eyeing Premium Housing that offers the best customer experiences such as futuristic approach in terms of automation, green practices, the efficiency of space so that it can be customized, and so on. Moreover, the Walk-to-Work concept has gained momentum with the increase in well-planned, mixed-use developments," Jatin Mohan Seth further added, providing additional perspective.
Both Jatin Mohan Seth and Kuldip R Rampal are optimistic that the Real Estate Sector is providing the much-required positive push to the COVID-19 hit Indian Economy.
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