Like all other industries, COVID-19 and the countrywide lockdown had ill effects on the real estate business. Its 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 scenario, and revival of different segments were at the center of discussion.
Firstly, we have to understand that real estate has always been a necessity. It proffers homes for people and office spaces for corporate and commercial establishments. You can recognize its importance in GDP through the different guidelines that 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, and expectedly people are about to buy property in Kolkata again, enough bloom 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 were decreased when the economy went for a complete lockdown during Q2. But, an upswing has been witnessed in it during the Q3 period.
The report encompassed the top eight cities of the entire country, indicates the launches increased by four and a half times, keeping the sale growth at two a half times when it comes 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, it is undoubtedly an excellent opportunity for people looking for 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 were ascended 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 period resulted in declining demand has been a trait of this year. Besides, the residential sector has been affected negatively 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, aggressive marketing of ready inventory, proffering 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 also helped the industry bounce back from the unprecedented situation.