Property prices has a hike to 10% by FY 2021

Due to Covid-19 pandemic, the world is totally shattered and facing huge problems economically. Moreover, many essential works and supply of goods are being stopped due to lockdowns. Though, the government has taken initiative to open up the transportation for essential goods and start the work at construction sites to support the realty sector but by maintaining social distancing. Though the government has introduced to release the stress fund of 25000 crore for the unsold and stalled projects. This measure will help the real estate industry to boost up the condition and also for the developers. Due to global lockdown, real estate industry is again facing severe losses. Due to coronavirus pandemic, most of the workers and labourers has been sent back to their respective localities which stopped the construction works. Lack of workforces and delays in project delivery leads to low cash flow. As the interest rates are high for the developers, the cost of material supply is also very high. Contact with clients are also becoming impossible as the offices are closed due to pandemic. Proper site visits are also stopped due to current situation and people are staying at home due to government precautions. Luxury premium projects are also stalled as the cost of such material supply are been increased. Transportation cost also high as many of the drivers are not available. These are the main reasons why the cost of production is increasing with the hike of 10% in the another one year. Home sales can be improved as RBI has reduced the repo rates which is comparatively low as per the records. The interest rates on home loans are reduced to grab the interest of homebuyers by providing the certain benefits of policy. According to the budget announced by the government has deducted the interest of home loans to 3.50lakhs on affordable housing segment. This will also renew the unsold inventory by declining it. Most of the developers has started to provide different schemes for payment plans of free parking and the rates of registration and stamp duty has also reduced to 20%. The buyers can book their property as per their choices by depositing minimum amount as token money which is. Also refundable. Premium quality apartments like 3 BHK Apartments in South Kolkata are also getting ready for the investment which is providing different offers and benefits. Buying Property In Kolkata in this situation also becoming an advantage for the buyers as different schemes and low interest rates will help the people to save their savings with a good home as an asset for life. Demand will remain stable due to less launches in FY 20-21 and India is still short in the choices of inventory. There may be some cash stressed Developers who will reduce price to get liquidity, but that cannot be construed as market.

By LNN (Liyaans News Network)