The real estate market appears to be turning into an end-user driven one even as the sector has been witnessing a fragmented recovery during Covid-19 outbreak.
Though there are favourable factors such as low home loan rates, controlled launches, better offerings, and the Government’s continued support for home buying, the pick- up in house sales has been gradual. Meanwhile, Covid-19 outbreak has proven to be a turning point for the Indian realty sector with some key changes taking place.
Each of the metros in the southern States is facing different sets of challenges from a pricing perspective. Between 2014 and 2018, Hyderabad had witnessed a surge in real estate prices while Bengaluru had seen a double-digit rise in prices. In both these locations, there has been a slight dip in the real estate prices. In Chennai, there has been no drop in price because there has not been much of activity, but what is interesting is that the builders are coming with differentiated sets of offerings such as providing kitchenette, white goods, AC for all rooms and the like, D Lakshminarayanan, Managing Director of Sundaram Home Finance told BusinessLine.
In Bengaluru, builders are reported to be offering interesting options such as an initial payment of five per cent and the balance payment on taking possession.
In another location, builders allow buyers the option of paying one rupee and the stamp duty and the remaining amount on completion of construction. So, in every location, builders are coming up with different sets of offerings to make it attractive for home buyers in the current uncertain scenario, he added.
“One is not really sure as to how long this will continue and the question is whether the builders will be able to hold on to their stock without bringing down the prices. Clearly the end-user segment is driving the prices today, said Lakshminarayanan.
According to property consultant Anarock the pandemic has changed the homebuyers’ thought process and decision-making patterns. Going forward, developers need to remember that the market is now driven by end-users only and so product offerings must be appropriately planned.
The importance of possessing a physical asset has been felt much more during these challenging times when ‘stay at home’ and ‘stay safe’ seem to be the mantras for avoiding infection. Also, with homes now being utilised as workplaces and for online education, the definite need for owning a home has been established, it said.