The Covid-19 pandemic has caused a lot of uncertainty. The people have been listening to the news more than ever. Almost everyone has seen how Sensex and gold prices have slipped. The huge financial losses witnessed by investors has been a blessing for the real estate sector.
Many investors are looking to pick up real estate assets after burning their pockets in equity. They are more concerned about the long term assets and the return on investment. We can see many investors already putting their money in foreseeing the returns from well thought out projects.
The first time buyers are also looking to make their way into this particular sector. This is an opportune time for people to invest in real estate, with low home loan interest rates. The real estate boom started around 2003-04 and the sector witnessed an immense growth. The recent fall in home loan interest rate is likely to fuel the growth again post the Covid-19 lockdown.
The interest rates of major banks and housing finance companies have fallen below 8 per cent for the first time in the last 15 years. It will certainly help the sector attract more buyers and investors. Low pricing is another factor that will attract buyers and investors to real estate at this juncture.
In the last year, there has not been any increase in the real estate prices. The buyers and investors are getting property at 20 per cent discount. There is a regular flow of investors in the sector, who by now have realized the utility of investing in real estate assets. The sector may witness a large influx of investors as soon as the lockdown is permanently lifted.
At this juncture, things are looking good for the real estate sector. It will be premature to talk about number too early in the piece, but the growth rate is surely going to increase in the longer run.