The Coronavirus pandemic was unprecedented, especially here in India. While there have been viral outbreaks in the past, none have had the effect that COVID19 has had on global economies. Several industries have been negatively impacted by the enforced lockdowns across India, yet the real estate industry has managed to maintain the status quo. In fact, all the general sentiment has been negative for most real estate companies, it’s the investors who stand to gain. Here are a few reasons why now is the time to invest in Goa real estate, or just real estate in general.
Homeownership is a new priority
For millennials aged 25-35 years, real estate has emerged as a new priority. Given the uncertainty of world events such as COVID19, younger investors are beginning to see housing as a sure investment. In a Consumer Sentiment Survey conducted by ANAROCK, 55% of the those who voted for real estate as the best asset class for investment were in the age bracket of 25-35 years.
Physical assets offer a better sense of security
As mentioned before, many investors are realising the security that comes with investing in real estate. In the same survey, 92% of the participants said that the security that physical assets provide during exigencies such as COVID19, and lower home loan interest rates are major deciding factors in choosing real estate for investment.
The affordable home market is still strong
Even though it was anticipated by most property gurus and builders in Goa that the affordable housing market would be the worst affected due to COVID19, we have seen the opposite happen. As per the survey, over 36% of the participants opted for properties priced within the sub Rs 45 lakh budget. This is probably because due to the ongoing pandemic, many buyers who previously had a higher budget have actually reduced it since they don’t want to lock-in such large amounts given the amount of uncertainty. To them, it would make more sense to buy an apartment based on their needs.
New buyers will pay a premium for low execution risk
More than 62% of the survey participants stated that they are willing to pay a premium on real estate such as luxury villas in Goa if it meant that the execution risk was minimum. This shows the faith that new investors are willing to place in respected builders in Goa such as Kasu who are RERA certified. Even if the property is relatively higher-priced, new investors would rather buy from a trusted developer.
The RTM market is picking up
A significant trend that is emerging now during the COVID19 pandemic is the increased willingness to buy a property that is Ready To Move into such as premium and well appointed luxury villas in Goa, instead of developments that are still under construction. This is probably because the construction of new properties has been halted across the country, and the likelihood of deadlines being met is bleak. At least 34% of the respondents in the survey said they are willing to purchase RTM properties.
These emerging trends look very promising for the real estate market in India, and for Goa real estate. What are your thoughts though? Are you looking to buy your dream home? Then get in touch with Kasu Real Estate today.