Home Sales see 134% Jump in Top Cities

The Coronavirus Pandemic, being an unprecedented event, brought with a lot of chaos. Everyone across the globe suffered due to the impact the pandemic had on every sphere of life. The unfamiliarity brought with a lot of uncertainty that hindered the overall routine life of everyone. The pandemic also lead to the imposition of a nation-wide lockdown in India which hindered with the growth or even normal functioning of every sector. Real Estate has been among the worst hit sectors due to the decline in overall home sales. Initially the sector faced a lot of loss; however, there has been a turning point that has been witnessed.

Normality is being restored and with that all the sectors are making a fresh and progressive start. The post Covid world, gradually falling into place is giving way to new opportunities for all the developers. The top real estate developers like SBP Group is gaining a lot of momentum in the meantime due to their credible image and consumers trust earned over time. Even though it cannot be said that all the states are powering through the situation equally well but the top cities in India sure are emerging despite the unfortunate circumstances with a beacon of hope for all the others.

Housing Sector is paving a way towards a strong recovery as the home sales in the recent quarter has seen an enormous and evident increase of up to 134 percent. One of the major reasons behind this increase is the decline that was faced by the sector. The decline lead to an all time low in the property rates which made it easier for people to make investments. Many people saw this as an opportunity to buy a home of their own or even invest in a asset which will be more beneficial and rewarding compared to the returns from stocks.

The major reasons for the same are also the Record low home loan rates, Discounts as well as Incentives being offered by Developers. Lower taxes are also an aspect worth considering while acknowledging the positive shift in the consumer behaviour.

Developers are making the most of this opportunity by luring in consumers with amazing offers and additional benefits, meanwhile, the Homebuyers are making optimum use of this to invest in a home of their own.

Considering the Pandemic, many people have realized the value of possessing a home as it provides a sense of security in times of uncertainty. The potential buyers who were looking for homes right before the lockdown are also making their long-awaited investments in the present time. Developers are also taking an initiative by providing lucrative payment plans etc.

The Indian Government has always introduced many policies and reforms to help the Real Estate Sector overcome the hurdles it has been faced with. Home Loans have been made easily accessible to people who wish to avail it. The rate of interest has also been relaxed to benefit the Banks as well as increase the inflow of money.

In Addition to all this, the advent of the Festive season has enormously impacted consumer behaviour as most people wish to make big purchases as well as investments during the auspicious season. The festive season also brings with it a lot of festive offers by the Developers, over and above the already existing offers. Major Indian festivals like Navratri, Dhanteras & Diwali are considered the best, in terms of auspiciousness, and the investments made during this time are believed to bring in a lot of fortune and positivity into the lives of the people.

The upsurge has mostly been witnessed in the Top seven cities considered best for living and in terms of employment opportunities. The Most prominent home sales have been made in Chennai, Hyderabad, Pune, Kolkata, Bangalore & Mumbai, etc. During normal times, investing in Property in these cities is quite difficult as the value and price of a property are quite high. The home sales price slashes have encouraged a lot of people who have always wanted to own property in these cities to finally be able to afford them.

In conclusion, despite the many challenges the real estate sector has faced due to the Pandemic, it has redeemed itself and emerged stronger than ever. It has been with the collective effort of the Developers like SBP Group who have taken the initiative to recommence the high inflow of investments. Additionally, the reforms extended by the Government to benefit the Developers as well as the Homebuyers have always played a role in the overall Growth.

If you are willing to Invest in Real Estate, right now is one of the best times to consider it without a doubt. If you are looking to invest in property in Punjab, you must take SBP Group into consideration. The Group offers affordable luxury housing options that are suited for everyone regardless of their preferences as the SBP’s Projects have it all.

In Case you have any Queries, Visit Our Website or Contact Us Via Our Social Media Handles.

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Will COVID-19 Push People Into Buying Homes?

Diverse markets have been severely affected by COVID-19. Although some sectors such as healthcare have benefited, due to the pandemic, a few others, such as the real estate industry, are facing a downtrend in the market. However, the pandemic has turned out as a surprisingly positive development for the real estate market, in particular for homebuyers.

The unstable share market and the struggle to manage expectations of common assets have increased the need for a secure investment, such as by investing in real estate. Also, with lower loan rates and a wide-open market, private land is at its best today. Besides, with lower interest rates and a buyer’s market, residential real estate is at its peak now.

According to a report, buyer preferences are currently dominant in ready-to-move homes, with the highest demand for homes priced between Rs 40 lakh and Rs 1.25 crore. In addition, almost 80 percent of housing deals since the pandemic have been made by end-users themselves.

The final decision to invest in a property is always of the buyer and even though the ball is in their court to make the best choice, they should consider a few factors. SBP Group brings you the following reasons you should consider before purchasing a house after the COVID-19 outbreak:

The rate of interest on home loans are at a record low

In the recent past, the Reserve Bank of India ( RBI) has cut the repo rate on many occasions, resulting in interest rates for home loans declining to sub-7 percent levels. Now, from that viewpoint, if they have the requisite margin funds, aspiring homebuyers should not attempt to let go of these record-low prices.

Aspiring buyers must realize that repo-linked home loans come with a scope of customer risk and only those borrowers with credit scores above 750-800 are given the lowest home loan rates. Therefore, before applying for the loan, they must review their credit scores, and if they find it to be lower than 750, they should take steps to enhance it not only to get the best loan deals but also to enjoy low EMIs during the loan period.

Opportunity for buyers

The RBI has ordered that housing finance companies (HFCs) preserve an LCR liquidity buffer, which will facilitate stability of HFCs to possible liquidity disruptions by ensuring that they have sufficient funds to withstand any acute 30-day liquidity stress scenario.

The property market has been overheated in past crisis situations, resulting from higher valuations, lower loan-to-value ratios (LTV), and volatile interest rates. However, for purchasers with higher LTVs, lower valuation, and cheaper credit availability, the scenario is currently more favorable.

Availability of Property at fair prices

In current times, the availability of housing units at affordable prices is another compelling reason to purchase one’s dream home. As rates are as low as they can get and some developers are willing to bargain more, it is possibly the best time for end-users to purchase homes.

Since the businesses have been at a relative halt in the first half of 2020, buyers and distributors are giving buyers a reduced price. The economic downturn has also played its part in reducing rates further. This has made it very cost-effective to buy a home.

Pankaj Kapoor, founder, and MD, Liases Foras, a real estate research company, said that ‘For those who have been waiting to buy for a long time, now is an apt time. The real estate industry has transformed a buyer’s market for the first time in about 15 years as terms have been dictated by builders and suppliers over the last 10-15 years. one can negotiate hard and get the house at a relatively low-than-quoted price.

Real estate, a secure asset

Not only has the uncertainty and unpredictability of the stock market diminished income, but investors’ confidence as well. As a stable asset class, this has also helped real estate market gain positive momentum. As luxury property buyers usually have a higher stake in the stock market, the luxury property market can be affected initially. With rationalization in prices, rental yields are expected to grow if factors like job stability and gradual economic revival are presumed to remain favorable. It will have a positive effect on improving the behavior of the customer.

Better Deals

Good ventures will not offer lucrative direct discounts. In terms of complimentary car parking or waiver of fees or phased easy payment plans, buyers can, however, get some composite sweetened offers.

Future Price Speculations

Although the industry has had its share of the decline in the price of homes, the trends suggest that there will be no further decrease in rates. Alternatively, with the time of lockdown relaxed across the country, these rates are expected to increase.

The industry experts recommend that the sale be made at the earliest as the timing of investing matters in the real estate market. Since the pandemic has resulted in a serious financial hit to individuals, there is also an increase in the feeling of procuring a safer type of home. Relative real estate stability is also attracting people to invest their money in the market.

Therefore, for the reasons stated above, The present condition has made it a good time to buy a property. however, you must not rush in to get the loan and purchase the house. Instead, to find the best according to your needs, compare various loans provided by the lenders. Take advice from property consultants if you have you and do proper research on the developer and project you are interested to invest in.

If you want to know more about real estate, current trends, properties to invest in, you can explore our website.

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Should You Buy A Property Amid COVID-19?

You may have read various articles telling you how it is the best time to buy a property as the home loan rates are lowest and developers are offering discounts and freebies etc, but to buy a property one needs to consider various factors, especially in the current scenario of Coronavirus pandemic which halted the whole world.

Job losses due to COVID-19 in India

Simply from the perspective of affordability, this might be the best ideal opportunity to buy a property. Yet, as per the Center for Monitoring India Economy, 50 lakh salaried representatives lost their jobs in India, in the period of July 2020, as a result of the Coronavirus-incited monetary burdens. Though, salaried jobs are not lost commonly, says the CMIE, when lost, they are additionally undeniably harder to recover. This implies all idealistic forecasts on the recovery of the economy and the employment market, for the time being, could be excluded.

These job losses have also impacted the stock market. The BSE Sensex dropped 1,115 points on September 24, 2020, or 3 percent, to end at 36.554, its lowest close since July 10, and the largest decline since May 18, 2020. It was the product of the US Federal Reserve vice-chair Richard Clarida’s statement ‘deep hole of joblessness and weak demand’. The Sensex reported its biggest single-day fall in four months as a result of his comment.

Buyers need to remain vigilant in such a situation. Your work might not be reluctant to risks. More significantly, it may be a hard challenge to find another job that fits your profile and remuneration.

The decline in Property Prices in India

Suddenly, purchasing a property in India has become much affordable than it probably was in the past few years. Prior to that, properties were so overpriced and the developer class so widely misused their dominant role that investors were left with no choice but to follow an impermeable approach to real estate.

While real estate continues to remain the country’s most desired investment, buyers remain somewhat hesitant. As indicated by the most recent information, 19,865 new units were launched across India’s eight markets while an aggregate of 35,132 homes was sold between July and September 2020, when the Government began the staged opening of the economy, after a drawn-out lockdown that began in March.

The real estate market has seen various downs recently because of regulatory amendments, such as the Real Estate Act (RERA), GST, demonetization, the Benami Property Act, the Bankruptcy Code, etc. and the situation of Covid-19 has not been much help as well.

As India’s second-largest employment-generating sector after agriculture, real estate plays an integral role in shaping overall economic development. As the market came to a sudden halt, hasty steps were launched by the government and administrative bodies to boost buyer sentiment. After periodic cuts, the country’s banking regulatory RBI lowered the repo rate to a 15-year low of 4 percent. And thereafter, financial firms lowered the average price of their home loan items. Many public sector banks are currently providing housing loans at less than 7 % annual interest.

Another aspect that works for buyers seeking to purchase right now is the fact that India’s developers currently have a lot of unsold housing units. This ensures that the customer can conveniently book ready-to-move homes because they don’t have to stress about project delays. As builders have to pay taxes to the government on unsold properties, they are willing to sell this ready stock at special offers. In addition, extra discounts may also be available during the festive season.

Now the main question arises:

Is it a good time to buy a property after COVID-19?

For end-users with a secure career/business, who are financially in an agreeable position, it is a fine opportunity for them to invest in residential property, taking into account the price advantages, with proper background checks on the developer and project.

Remember that home-buying has long-term repercussions and is not just financial.  Most consumers, based on the prevailing circumstances, are currently doing their home purchases. Since remote work is the new standard, most individuals are searching for homes on the outskirts of cities. They might also lose sight of the fact that business conditions may reverse, offices may reopen and it may not be a smart idea to be far from the city centers after all. The option of a buyer’s property must not be solely dictated by the prevailing market situation, no matter how daunting it is.

All points are taken into account, today’s real estate buyers are in a privileged situation and can make the most of it if one has the resources to invest in property. A buyer must, however, take care of different factors in order to make property investment after COVID-19 even more lucrative.

• Do a background check on the developer you are interested to invest with.
• Also, do a proper check on the financial institutions offering home loans, do a comparative analysis to know what and how different their loan policy is from others.
• Consider taking a loan on a fixed rate of interest as they are at an all-time low right now.
• Before you enter into a deal for a ready-to-move-in home, ensure that the developer has secured all requisite approvals from all concerned authorities.
• Investment in an under-construction property should be avoided as there are chances of delay in possession.

For any other real estate queries, please refer to other SBP Group blogs.

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Difference Between Agreement of Sale and Sale Deed

There are various terms that are used in real estate and main confuse the homebuyer. We understand that when purchasing or selling immovable property, persons enter into a contract with the seller. It must be noted, however, that the form and format of the agreement can vary. In general, there are two kinds of contracts, an agreement of sale and a Sale Deed. The names of both contracts may sound very similar, so one tends to believe that they mean one thing or the same thing. Let us understand the concept of both.

What is an agreement of sale?

The Transfer of Property Act, 1882, which governs matters relating to the sale and transfer of property, describes the sale contract or an agreement for sale as follows:

According to Section 54 “A contract for the sale of immovable property, is a contract that a sale of such property shall take place on the terms settled between the parties” Furthermore, Section 54 specifies that “it doesn’t, of itself, create any interest in or charge on such properties.”

In simple words, an agreement of sale is a deal to sell a property in the future. The terms and conditions on which the property in question will be transferred are set down in this agreement.

An agreement for sale consists of the following terms:

• Proposal to purchase and agreement to sell in future
• Detailed property description
• Disclaimer that the property is free from legal obligations
• Value of the property including payment details
• Delivery of the original documents on the final payment
• Execution of sale deed and registration of the same if the titles are found good
• Method of property delivery
• Payment reimbursement in the event of improper titles
• Action course for non-completion of sale on the part of the seller
• Loss of payment in advance if the buyer fails to complete the transaction
• Remedy if legal issues besiege the property
• Transfer of tax-related certificates
• All other matters related to the proposed sale

Importance of agreement for sale:

In view of several factors, signing an agreement of sale becomes essential. Firstly, this is legal documentation of the consumer and seller entering into an agreement on the basis of which, in the event of a disagreement, the potential course of action will be determined. In addition, if you apply for a home loan, the bank will not approve your application until you sign an agreement of sale.

What is a sale deed?

A sale deed is a legal document proving that the seller has transferred the buyer absolute ownership of the property. The rights and interests in real estate are obtained by the new owner via this document. The deed should, however, be drawn only after the clear resolution of all the contractual terms of the sale agreement. In addition, it is compulsory under the Registration Act, 1908, to register a sale deed at the registrar’s office.

A sale deed usually includes the following details:

• Details of the buyers and sellers (name, age, and addresses)
• Property description (total area, details of construction, the exact address and surroundings)
• Transfer of titles
• The clause of sale consideration
• References to the agreement of sale and the price details
• Transfer of rights, interests, and claim of the property to the new buyer
• The time frame when the property title will be actually passed to the buyer.
• The actual date of delivery of possession.
• A clause that the previous owner does not hold any authority on the facilities, privileges, and easements of the property
• Compensation to the purchaser for losses arising out of the negligence of the seller or heirs of the asset
• The authority of the vendor to sell the property.

Key Differences

• Transfer

Agreement for sale: It implies the future transfer of property

Sale deed: It signifies an immediate transfer of the property titles

• Risk involved

Agreement for sale: Unless the property is sold in the future, risk/liabilities remain with the seller

Sale deed: Risk is shifted immediately to the new buyer

• Contract

Agreement for sale: It is an executory contract. An executory agreement is one which has not been fully implemented

Sale deed: It is an executed contract

• Violation

Agreement for sale: Breach of sale may result in a suit for damages

Sale deed: Sale breach results in a legal complaint as well as monetary compensation for damages

• Registration

Agreement for sale: It is not mandatory to register the agreement of sale. Nevertheless, requirements can vary across states.

Sale deed: Registration of a sales deed is mandatory.

From a legal perspective, to arrive at a hassle-free closure, it is important to understand the terminologies listed above. A lack of knowledge can not only lead you to legal issues but may also put your investment at risk.

For example, if you purchased a house under the agreement of sale and failed to execute a sale deed, then the right to property will stay with the developer even though you get hold of the property possession. Therefore, it is imperative to create a sales deed and have it registered to prevent certain circumstances. Only a stamped and licensed deed ensures the buyer's possession of the legitimate property.

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COVID-19 Impact: Homebuyers Looking for Larger Apartment

As we know due to COVID-19 people are not shifting to bigger houses and demand for ready to move houses has shown a positive shift in recent months. With the outbreak of the virus all around the world, many changes have been made and seen around us as well. One of such major change is work from home culture and online schooling as well as classes. With numerous organizations permitting work from home (WFH) to countless workers, in the scenery of the continuous COVID-19 pandemic individuals are presently searching for open houses bringing about expanded interest for moderately larger apartment. The new interest design is driven by homebuyers’ have to oblige space for remote working.

A joint review on purchaser assumption by self-administrative body National Real Estate Development Council (NAREDCO) and a real estate portal showed that over 40% of purchasers are hoping to enhance their homes. Due to this reason, there is a decrease in the interest of 1 BHK apartments.

As per the most recent update on real estate news, over these recent couples of months, enquiries for bigger homes in Bengaluru have expanded up to 40% with property searchers prevalently exploring for 3 BHK Apartments with normal 1,800 sq ft developed region as against the beforehand favored 2 BHK Flats. In cities like Mumbai as well people are trying to upgrade their houses from 1 BHK to 2 BHK.

Why Is There A Sudden Rise In Demand For A Larger Apartment?

Numerous organizations permitted WFH because of the lockdown yet are presently wanting to proceed with it. Thus, individuals are presently hoping to cut out an office space into their homes. For around the previous half-year, a great many people have been working from their home space. This has brought about a longing for extra space where one can focus on work.

Moreover, families with children are also looking for extra room as students need some privacy while attending online classes. Content creators, influences, and creative personnel also need a huge amount of concentration for their work which can only be provided through non-disturbance.

Another impact of COVID-19 on housing demand is that due to the availability of world class facilities and open spaces around new homes, the demand for new houses relative to those on resale has increased.

For those working from home, traveling is no longer a concern, which has eliminated the need to move a house closer to the workplace. As a result, for greater affordability, individuals are more open to moving to peripheral areas.

It has been seen that With certain individuals moving to the places where they grew up because of WFH, the interest in tier II and tier III urban areas has gone up. In Punjab, demand for property in Mohali, Ludhiana, Amritsar, etc has been expected to rise as well.

Another reason behind the demand for larger apartment is that the Reserve Bank of India (RBI) has reduced the repo rate on several occasions in the recent past, resulting in interest rates declining to 7 percent for home loans. Now, from that point of view, if the necessary margin cash is available to aspire homebuyers, they should not try to let go of these record low prices.

With the easy availability of home loan at less rate of interest, the decision of moving to another house which offers them more space is very easy to make for potential buyers.

In India, homebuyers typically start their home ownership experience with small new houses with the intention of upgrading at a later stage to a larger apartment. When affordability increases, these upgrade decisions are normally made. According to property brokers, the current record low home loan rates, enticing festive season discounts, and developer deals are leading many of them to take the decision with secure finances.

If you want to know more about home loans, interest rates on loans, etc then you can read our other article ‘how to get the best home loan deals right now?’

Besides that, In the present circumstance, consumers prefer developers that have a credible track record. There is a certain change in homebuyers’ enquiries to trustworthy developers such as SBP Group after the recent implication of Real Estate Regulatory Authority 2016 (RERA)  and Goods and Services Tax (GST). Also during the lockdown, developers with a strong track record reported notable sales are given preference by customers.

Buying a home is a very big financial and emotional decision. Considering the sudden outbreak of coronavirus and changes in work culture and home environment and rise in some basic facilities, everything has contributed to larger apartment surge. The current buyers are mainly working couples with children, most of whom are currently exploring options for WFH and e-learning.

Their budgets have not risen in many situations previously, but now with the government’s efforts and developer’s offers, they are even willing to settle for peripheral locations to obtain larger apartment and a better lifestyle at a more affordable price.

In peripheral locations, new projects which are being launched are taking good advantage of it and are offering ample space in rooms as well in parking space as well and with their top notch amenities and safe neighborhood.

Our advice to you is that one of the greatest purchases in one’s lifetime is a home, so it’s important to be cautious. To determine whether WFH would be long term for you and decide accordingly, be aware of the activities followed by employers in your sector. Invest smart and invest with a good developer, so that you can feel secure in every way.

For any more information, you can check out our other blogs, or if you are interested in buying an apartment you can visit our website to know detail about our projects or connect with us on our social media pages.

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What to Expect When Banks Process Home Loan Application?

 Buying a home requires a huge amount and for a layman, it is not possible to invest such an amount all by itself, which is why most homebuyers seek the help of financial institutions to avail home loans. Prior to banking digitalization, The way of acquiring home loans in India includes various procedures that were complicated and time-consuming for applicants. Now, the procedure for online home loans is not only simple but also fast. Within a few weeks, your loan will be disbursed. Whether or not you will be able to execute your home buying plans will ultimately depend on the evaluation and approval of your home loan application that will be processed by your bank.

Since interest rates on home loans are currently at record low rates (less than 7%), most customers are willing to do real estate investment. The applicant must be vigilant as it is important to get approval for the sum you have requested from the bank as credit. Let’s look at some of the considerations that must be followed by you while your Home loan is being processed.

Make Sure You Are Accessible

Officials of the banks can attempt to contact you on your mobile phone to request confirmation of the many details given in your application form. There may even be a call to ask you to provide extra documents. As part of an applicant’s liabilities, banks also often disclose many hidden fees on home loans that a buyer has to pay. They could send emails as well. Keep your emails updated frequently, as well. So, if the bank officials were to get in contact for something, make sure you do not miss the call or an email. If that happens, the processing of home loan application can take longer.

Prepare For The Verification Of Property For Legal And Technical Teams

Bank will send two separate teams to complete the most important part of the processing. In order to make their assessment, one member of the legal team and another from the technical team will visit the property you want to buy. The buyer would have to be available at the house they wish to purchase at all these times. They should also make sure that the dealer is available, along with all documentation and payment receipts relevant to the property ownership.

The legal team will ensure that the property has no legal issues, will examine all the original documents, NOC, and ownership papers. while the technical team will evaluate what the market value of the property is, the physical condition of the property, building specifications, etc. They will recommend the bank to process your request only after the legal and technical teams are satisfied with the property and its legal title. If you are not available for these appointments, it will take much longer to process them.

Be Present At The Address Given By You

A check on the applicant will also be carried out by the bank. They can verify the truthfulness of the personal data you have provided. For this, your current address and your office address may be visited by bank representatives. At a designated time, they will make a visit, during which they require you to be present. This is a vital aspect of the processing of home loans and can be easily accomplished, with the assistance of the borrower.

All this is to ensure that the loan falls through the “right” hands and that the borrower has the “means” to pay the debt back.

Inform The Witness About The Home Loan

Banks ask you to include the names, contact numbers, and addresses of two people in your home loan application who may know you well. They mention that these associates are not your relatives in any way. The names of their friends or co-workers are often given by home loan applicants.

Notice that bank officials will separately contact each of these individuals and ask about you and your relationship with them. They can also ask the person about his occupation and address. This means that calls from the bank should be open not only to you but also to your contacts. If even after repeated attempts, the bank fails to contact your witnesses, it will prolong the whole operation.

Inform these witnesses in advance that you have provided the bank with their information in relation to your home loan application and that they should expect a call about the same.

Overall keep the following points in mind when requesting a home loan:

• While the whole process of home loan approval is being conducted, make sure to be available on time at the right place.
• Check your emails from time to time.
• Don’t avoid unknown phone calls as they may be from the bank to know some information.
• Be ready with valid documents and sellers when the legal and technical team pays a visit.
• Inform the people whose name and contact you have given as witness in the home loan application.
• You can fix the time according to your convenience, just be present at the appointed time.
• You can not give the name of your blood relative as a witness.
• Banks typically charge for conducting the technical assessment of the house. This may be part of the processing fee as well.

Once the process has been completed and the loan has been approved you can purchase your dream home and can live a comfortable and safe life.

If you need any information related to real estate, home loan, the realty market, etc. SBP Group is available for you. You can connect with us on our social media and website anytime.

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Are Homebuyers Preferring Ready to Move Projects?

The year 2020 has been difficult for all due to an uncertain outbreak of COVID-19 with the whole world under lockdown trying to stay safe inside their homes nothing seems to be easy. The virus has impacted every individual and every business, the real estate sector is no different.

But if we look at the bright side, this virus has taught everyone the significance of having a home. In the unavailability of vaccines yet only our homes and proper precautions are keeping us safe.

Now more than ever people are considering buying property instead of living in rented houses. That is potential customers are looking for ready to move projects in the property as in the current scenario waiting for construction to get complete doesn’t appear to be a wise idea. Besides that, there are other factors that have contributed in preference of ready to occupied projects over others.

How COVID-19 has impacted homebuyers preference to ready to move projects?

• Choosing a ready-to-move-in apartment lets the homeowner minimize the cost of living in rented properties.
• Prior to buying the home, the buyer can check the neighborhood and the amenities in the vicinity of the building.
• In view of ready-to-move-in housing, there is no chance of delays as the construction has already been completed. While due to coronavirus many developers had to stop their construction and many skilled laborers went back to their hometown.
• It also provides the home buyer with a sense of protection that is very important in the current situation.
• The benefit of the absence of a waiting period of possession can’t be ignored.
• In the recent past, the Reserve Bank of India ( RBI) has cut the repo rate on many occasions, resulting in interest rates for home loans declining to 7 percent. Now, from that viewpoint, if aspiring homebuyers have the requisite margin cash, they should not try to let go of these record-low prices.
• Some first-time buyer willing to participate in the purchase of residential property opts for a ready-to – move-in home. because the decision is often motivated by emotion to safeguard their future, their parents’ future, and that of the future family generation.
• Earlier, either the existing residence was rented or smaller in size, now families need ready to move projects that provide them ample space for work from home.    what drives most home seekers to select ready-to-own homes in the post-COVID-19 world is the safety and security element.
• Another reason being due to the anticipated delay in deliveries associated with under-construction units, ready-to-move-in condos are also showing greater momentum. The demand for ready-to-move homes has increased significantly since the lockdown, with no goods and services tax (GST) payable on resale flats, and the industry is also seen heading towards this trend.
• The need and desire to own property is the transmission of Covid-19 at an all-time high post. Indeed, the effect of price advantage and lower home loan rates encourages consumers to purchase homes. For buyers with higher LTVs, lower valuations, and cheaper credit availability, the scenario is currently more favorable.

All these factors have influenced the homebuyers to opt for ready to move projects. Usually, a person buys a property for two reasons: first it for self accommodation and secondly for investment purpose. Due to COVID-19, not only people are preferring to buy home for staying safe but also for investment.

As not only has the uncertainty and unpredictability of the stock market diminished income but investors’ confidence as well. As a stable asset class, this has also helped real estate gain positive momentum. As luxury homebuyers usually have a higher stake in the stock market, the luxury market can be affected initially. With rationalization in prices, rental yields are expected to increase if aspects such as job stability and gradual economic revival are presumed to remain favorable. It will have a positive effect on improving the attitude of the customer.

The developers right now are also very eager to make sales as due to pandemic and lockdown in the country their sales were very less than usual and unavailability of labor, raw material, etc has also affected their under-construction property, due to all these they are making various incredible offers to customers. The market right now has turned into a consumer-oriented market. With a good negotiation, you can get a good deal on the property.

End-users can select from a wide variety of choices in almost all locations and budget bandwidths and can purchase ready-to-move properties at rates like never before on premium projects having top notch amenities.

Future trends of investment show that Tier II cities like Mohali will see increased investment from homebuyers who want to mitigate risk and optimize returns with cheaper prices, more space, and better returns on investment.

Even though all these things are influencing homebuyers decision few things which they should keep in mind while buying a home are:

• Make sure that the ready to move flat or project you are investing in is RERA registered.
• The required approvals and licenses should be available for the property.
• Select a prime location where everything is easily accessible such as hospitals, educational institutions, public transport facilities, etc.
• In order to understand the viability and quality of the project, all information concerning other project-related parties (such as banks, consulting services, etc.) should be collected.
• As it is usually a one time investment, talk with the people already living in the premises to know if they are having any inconvenience. Always invest with reputed developers for instance SBP Group.

In brief, the ongoing pandemic has further pushed the already rising preference for ready to move projects, and this will persist long after the ongoing major crisis is over. From savings in the form of GST to the value of being able to move in once payment and formalities have been completed, the greatest plus is that COVID-19 has brought the urgency factor to be able to move into the new home.

For any more information or enquiry you can connect with us at our website.

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Real Estate Developers Ready with Festive Offers

Festival season has always been the favorite of every person, it is filled with excitement, festive offers, and happiness. But this year it is not the same as always for everyone. As the festival season draws close, the real estate developer expects a more successful last quarter of the year 2020.

There is no doubt that the national lockdown of Covid-19, which started in March, hardly impacted the sector with essentially no sales. However, there was a major turnaround and sales increased from July to September with the country relieving restrictions in phases. Now when the biggest festival of the Country ‘Diwali’ is around the corner, real estate developers are all set to approach the customers with appealing Diwali offers and schemes such as discounts, payment schemes, free maintenance, or other freebies.

The marketing strategy behind high sales in this season is that ‘Almost 70 percent of their full-year revenues come in the third quarter of the financial year alone for most companies. Sales output has always been 30 percent higher during the festive quarter from October to December, relative to sales during non-festive quarters says Prashin Jhobalia, vice-president, House of Hiranandani.

This pandemic has made every person realize the importance of having your own home. The coming season can also turn out to be a great opportunity to invest in their property for Indian citizens as well as for NRIs.

As you know that Interest rates have dropped, and there is a large supply of affordable and middle-income housing across top cities such as Tricity. Homebuyers today tend to go in for a ready-to-move property and demand in this sector might be impressive this season. Some buyers may also be contemplating a pandemic upgrade involving the need for large and wider homes to work-from-home.

Earlier, builders would offer free tickets to exotic locations overseas such as Europe, free parking, and similar freebies that would attract buyers. But now the time has changed and so offer. In the current situation, consumers prefer healthy cash discounts and flexible payment plans, free maintenance, etc.

With the scheme of government ‘Housing for All’ or ‘Pradhan Mantri Awas Yojana (PMAY)’ the realty market of India has seen a positive shift in demand. With the low rate of interest on home loans and real estate festive offers by developers, it is expected that the real estate market will see a rise.

SBP Group believes that there is nothing much greater than to celebrate a fiesta in your own home. Moreover, homebuyers who want to buy a house this Diwali should know that the market today is a market for buyers. Not only are builders providing offers and discounts, consumers are in a great position to negotiate hard and make substantial profits.

Reasons to buy a property during the festive season 2020: If you are considering whether or not to invest money in a property following reasons can help you in making a sound decision:

• The market is right now more consumer-oriented.
• The repo rate is at its lowest @4%.
• Monetary estimates suggest that this could be an optimal time for property investment. Home loans are available at interest rates below 7 % per annum, and banks are also providing certain waivers to reduce additional home loan expenditures.
• The real estate festive offers result in additional benefits to the buyer.
• Homebuyers should also acknowledge that the market has undergone a recession. The vast unsold inventory and the current pandemic have pressured businesses not to raise their prices. Prices are trading sideways as a result. With fewer releases, for homebuyers eager to buy, the market is primed.

Tip for buyers: During the festive season, some numerous attractive deals and festive offers are being given by developers to boost demand. During this time, many studies and previous experiences have shown that there is often a rise in the number of enquiries. It helps if sufficient research is carried out on the developer, offer price, previous projects delivered, deadlines met and product quality, without being carried away by unreasonable discounts alone. Always make sure that the developer is RERA registered or not.

Why consumers are attracted to these new festival offers?

‘A free parking space, waived stamp duty and registration fees and free periods of maintenance add to the savings, and hence to the value of the contract. Air conditioners, modular kitchens, and furnishings are all expenses that can be incurred sooner or later on the house, so having them free now adds real value’ says a real estate consultant.

Offers provided by developers: Consumers can expect good cashback offers or cash discount on per square feet price. Along with that, the most alluring schemes by developers are to provide freebies such as air conditioners, TV sets, home décor items, modular kitchen, zero maintenance, and free club membership, gold coins, and smartphones.

A GST and stamp duty waiver is also provided by some developers. At present, GST is paid for residential units outside of the affordable housing segment at five percent. The customer has to pay stamp duty and registration charges at the time of registration. While stamp duty ranges from 3-10 percent depending on the state, on property worth over Rs 25 lakh, registration charges work out to 1.1 percent.

Even after all these offers and schemes, the main question which is ahead of all the people especially real estate developers, brokers, brokerage firms, etc. is:

How will the real estate industry recover from the pandemic of the Coronavirus?

Some experts are of opinion that the government needs to work closely with and address key issues in the real estate sector. “It is going to help revive the economy. In terms of decreased interest and GST rates, lower taxes on construction / raw materials, etc., realty players seek government help so that they can pass on the benefits to home buyers and thus raise consumer sentiments. At lower interest rates, developers still need financing, so that the total cost of the product stays low.

Overall, it is expected that this season will be the boost the real estate sector. For any more information, you can connect with us on our website.

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