casino siteleri
Real Estate

Investment in Gurgaon Real Estate During COVID-19 and Its Impact on Affordable Housing Segment

Affordable Housing Segment

The pandemic situation caused by COVID-19 across the world has led to a complete lockdown of the global economy. Instability in the stock market is increasing rapidly, and investors are looking for other secure options for profitable investment. The pandemic has increased the surge for protection and shelter in tough times. The crisis has also opened many new horizons of selling real estate that was under-used to date. Besides, the priorities of homebuyers in India have significantly changed. They now realize the significance of buying a home. Hence, this has maximized the demand for real estate Projects in Gurgaon after the unlock process across the country.


Real estate in Gurgaon may not provide immediate results. Still, it is less unstable than market-driven investments, thereby making it a safer bet for investment during the crisis. The demands for residential projects are increasing as the millennials are the major demand drivers, and the ongoing uncertainties dictate their penchants. Below are the factors that are increasing the demand for real estate investments during COVID-19.


Adoption of Latest Technology


Some major upgrades have been observed in real estate as the builders and developers adopt the online method for virtual property visits. People who preferred offline property visit earlier are now using online realty portals to virtually search and visit the property sites. The virtual tours to the property are high in demand amongst the homebuyers to shortlist and finalize it. 


Government Policies


The home buying sentiments are driven by the cheaper and affordable home loan interest rates that are announced by the government. There is a revision in the reserve repo rate from 4% to 3.75%. It has encouraged the lending agencies to infuse the liquidity parked available to them into the market, and hence it eases the liquidity. Besides, the commercial real estate assets will also register a momentum as deferent of payment has been increased up to 365 days. It allows the developers to have more time to construct and deliver realty projects timely to meet the market demands. 


NRI Investment


The NRI investment size in Gurgaon is quite huge, especially in the mid-segment and Affordable Housing Scheme. Because of the decreasing value of Indian Rupee, the interest amongst the NRI to buy property in India has increased. The best time to invest in rewarding and tangible assets in the post-pandemic world is never better. 


Impact on Affordable Housing Segment Due to COVID-19 


Before the COVID-19 pandemic, the focus of investment in commercial property was in co-working spaces. But now the situation has changed because of changing consumer behaviour. Plus, millennials are now searching to buy residential properties in the mid-segment and affordable segments. The affordable housing segment has rapidly grown during the pandemic crisis because of the backing from Central Government and initiatives like Pradhan Mantri Awas Yojna.


Extension of RERA deadline and reduced reverse repo rate and recapitalization of NBFCs along with embracing 10,000 Cr. for National Housing Bank will ensure smooth flow of the capital to HFCs, further expanding the credit support to the builders and developers. All these crucial and major steps will influence homebuyers’ mindset and maximize the chances of high buying power. The affordable and mid-segment projects are always in demand, and after the COVID-19 pandemic, it will further increase in manifold because the fence-sitters will prefer buying them again. 


Moreover, the government has also armoured the affordable housing segment by increasing the CLSS or credit-linked subsidy scheme for mid-income groups up to March 2021. It has opened many new opportunities for investment class in the form of affordable rental programs for urban poor and migrant workers. Another interesting trend that will increase the demand for affordable housing in Gurgaon is reverse migration. It will increase the demand for housing in Tier-2 and Tier-3 cities, thereby giving the developers with multiple options to expand the ongoing projects to markets. 


The future of Gurgaon real estate depends mainly on the policy support and the stabilization of the economy, and during the festive season of 2020, the market will become stable hopefully. All builders and developers are presently buoyant for the upcoming quarters, which are likely to record a positive outlook in demand for real estate projects in Gurgaon.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button