An investment in real estate is never a bad deal but it becomes even more interesting if you are being given lucrative offers attached with it. It is one of the most sought out investments which people make, be it for living or just making money by renting or selling the place at some later point in life. It is a huge decision for most people to decide upon which property they should invest in, and when they decide they start looking at how they could make this investment. A down payment is okay but it’s highly unlikely for most of the members of the society to straight away buy their homes making full payment.
While so many things have been hampered due to the pandemic going on worldwide, some may have blossomed too. Covid-19 didn’t have such an adverse effect on the real estate business but instead, the industry has grown through this time because of the people’s urge to invest in homes more. This increase is mainly because of the increase in work-from-home culture as companies are promoting it so the buyer’s sentiment towards home buying and investment in properties has increased rapidly.
Reasons for Influx in Home Buying
There are so many reasons as to why people have increased investing in properties a lot more like increase in the IT sector hiring, people wanting to increase their home space because they also need space for their offices now. One more reason for the same is the low-interest rates offered by banks. Real estate companies and brands are slowly gaining back their confidence which they had lost for almost a decade after demonetization, several rules being changes by RERA, etc. Lowering the interest rates is being considered as a welcome initiative by companies, especially after the roller coaster ride they had to go through the post-pandemic.
SBI being amongst the largest government banks has announced to reduce their interest rates to 6.7%, irrespective of the loan amount. Canara Bank’s also giving loans at a 6.9% rate. Other banks too have lowered their rates and are now ranging them from 6.7% to 7%. According to recent research, properties in the range of Rs 80 lakhs and above i.e. the one are which falls in the premium range of properties. This influx in the properties could also be because of the need to have homes of double sizes now as there needs to be a specific space for office/educational center promoting the concept of work-from-home.
The records, when compared to last year look a lot more promising because after the shutdown companies had to go through last year, there’s an increase in the loans offered by companies from 15%-17%. The concept of having a home or owning one was very clearly realized during the pandemic. As a result people now want to invest more and more in the real estate sector so that they could have a place to stay of their own. Banks and their lucrative offers are only helping in this agenda as they are making the homes affordable at such low-interest rates.