The housing market plays a very important role in the economy of a country. The housing market forecast plays a pivotal role in the housing market crash or boom. The market remains a very hot point for all real estate investors. The annual price growth is reaching very high and the inventory is falling like never before. However, since people are losing their jobs, the rate at which the market is going up will eventually fall down.
If we look at the real estate trends in India, there is a lot to say about this industry. According to the global ratings of September, the growth forecast in India for the real estate sector will be cut down by 9%. The major factor which is holding back the economic activity in a country is the pandemic which is going on.
Housing Market Forecast: Crash vs Boom
- The GDP has shown a turn down in the first quarter of next year. Accordingly, the economy will decline too. But the entire perception of experts on the real estate sector has been very varied because of the work from home policy and the hygiene issues.
- Since people now understand the need of being hygienic and clean all the time, sanitation has become their priority, they are now looking for accommodations that can be small and in their budget but also be very clean for them. The leading research agencies have predicted a halt in the growth of real estate in India. The sales of real estate in July and September for this year have also declined. This is major because of the decline in the income of people.
- Unemployment plays a very important role in the gross domestic product and the sales of real estate. If people do not have any jobs, how will they afford to pay for a property they want to purchase?
- The entire perception of buying behaviour depends upon the pocket of the buyer. There were a few positive predictions about the sector before the pandemic. However, all went in vain. This is because the government has seen the result of the pandemic in our country.
The Real Estate Market Crash
- The pandemic has had a multiplier effect on the industries. The government has announced lower interest rates and high tax breaks for the sector. This is undeniably attracting investors to buying more houses.
- The slowdown in the demand has already affected many industries. It has also affected the real estate sector like never before but the sector will bounce back in very good shape.
- All the practices that are done by the Reserve Bank of India like injecting a lot of money in the economy by the process of the moratorium have been good for the country but it is only done for short-term liquidity. It was done to help the developers and buyers.
- Also, since there has been a lot of delay in the project completion, the government has extended a helping hand to the builder community.
To Sum up
The real estate segment of a country is very important for the country‘s growth. Delivering the existing projects can delay because of the supply chain issue but, the industry will flourish back like never before. Even if it will go down, it will see a lot of buyers in the market that are willing to opt for houses because of the pandemic.
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