Real Estate industry has gone through many uncertainties in the wake of Covid-19 in 2020. But there are positive signs in the year 2021 and the sector is looking to overcome the enduring turmoil of 2020, with a number of positive steps taken by the government to revive the real estate sector. Here we are going to discuss the factors that will impact both the real estate sector and home buyers in 2021.
Property prices are likely to be constant
Many experts believe that year 2021 is the best time to buy a house. Low interest rates, unsold inventories due to construction delays and distress to the sector caused by Covid-19 these factors will certainly have a major impact on the property prices. As highlighted by Global investor and author Ruchir Sharma in an interview on January 9, 2021, he says-“Great time to buy a house taking a fixed rate mortgage because interest rates are likely to go up over the next few years,” Source: NDTV.
Low interest rates to propel the demand for housing
RBI in a bid to boost the sector has kept the repo rate to 4% unchanged for the third time in a row in its bi-monthly monetary meet held in December 4, 2020. Prior to that repo rate was 4.40% for the month of March and April 2020. The result of an unchanged repo rate had a clear and visible impact on most banks home loan rates. The rates were reduced to 6.75 to 9 percent in the second half of 2020 from the highs of 8.05-12 percent in January 2020. The next RBI monetary meet is scheduled for February 3 to 5, 2021. Buyers looking to benefit from the low interest rate must hurry up.
Reducing stamp duty charges to boost housing demand
In a bid to boost housing demand, Maharashtra was the first state to cut down stamp duty to 2% from 5% in-effect till December 31, 2020 and 3% from January 1, 2021 to March 31, 2021. Madhya Pradesh also reduced the stamp duty to 1% from 3% for urban areas and Karnataka to 2% from 5% in an attempt to increase the housing demand. Following the suit, UPRERA Chairman Rajiv Kumar has written to Uttar Pradesh government recommending them to relax stamp duty 2% across the state. – Source Financial Express
Easy payment option and discount for home buyers
The sector is currently looking to overcome the hiccups of 2020, the way is to provide customers good deals and easy payment options to buy a house. Easy payment options will also attract the first time home buyers and people looking for a good investment option will surely seize the opportunity. As it is the best time to buy a house, home buyers looking for a good deal on payment options don’t have to go too far, Wave City’s Dream Homes located on NH-24, Ghaziabad offers the perfect deal with easy payment options to own a beautiful house.
Real estate has gone through several tumults in 2020, but the future looks bright and in 2021 the sector is poised to grow at an impressive rate, contributing in the overall economic growth of the country.
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