COVID-19 and the countrywide lockdown had ill effects on the real estate business, just like all other industries. Sales teams, marketing teams, and construction staff have been looking for a solution to minimize this phase’s impact. Topics like online marketing, rental situations, investment scenarios, and revival of different segments were some of the main ways discussed to combat the situation.
We need to keep in mind that real estate has always been a necessity. It offers homes for people, and office spaces for corporate and commercial establishments. Its importance in the GDP of the country can be recognised through the different guidelines which the government set for this sector, during the lockdown period. The repo rate was minimized, which lowered the interest rate of home loans. And, the announced packages also helped the industry to run smoothly in that hash time.
Now, as the entire country is moving gradually towards the unlock phase, consumers are expected to buy property in Kolkata again.
Enough boom signs can be observed in this sector. According to Knight Frank’s ‘India Reality Report’ for Q3 (July – September 2020), the sales rate and supplies declined when the economy went under a complete lockdown during Q2. But, an upswing has been witnessed during the Q3 period.
The report encompasses the top eight cities of the entire country. It indicates that the launches increased by four and a half times, keeping the sale growth at two a half times in comparison with Q2 of 2020.
The residential market has portrayed a more than expected recovery rate during Q3, despite the resumption of lockdown and macro-economic challenges, which adversely affected all sectors of the economy. Hence, this is undoubtedly an excellent opportunity for people looking to buy property for sale in Kolkata.
While releasing the report on a zoom platform, GM of Knight Frank, Shishir Baijal, asserted the way the industry has bounced back in the quarter is quite promising; but still, there are spheres of recovery. A rise of 247% has been witnessed on a quarter to quarter basis while the launches rose by 45%. During September, Mumbai saw the most considerable rise as the Maharashtra Government stood for a 300 bps cut in stamp duty. Mr. Baijal also asserted that REITs’ success and the inclusion of new players in the sector would amplify investors’ long-term confidence for commercial spaces.
The reluctance to buy homes during this challenging period resulted in declining demand. This has been a recurring trait of this year. Besides, the residential sector was negatively affected because of supply chain disruptions, constriction material cost rise, liquidity crunch, and more.
However, the scenario is changing because of the fall of residential costs, and aggressive marketing of ready inventory offering various discounts and freebies. People are gradually showing their interest in buying a 3bhk flat in Kolkata and other major cities. The home loan rates have been notably lowered, and the moratorium on loan investments has been extended, which has also helped the industry bounce back from the unprecedented situation.