4 Reasons Why Over 60% People Considered Buying a Home During the Pandemic
With many businesses, including real estate, yet observing a slowdown, 2021 isn’t just a numerical successor of 2020 but seems to have inherited almost everything from its predecessor. In regard to real estate, in particular, although things seem to be improving a bit, a majority of the sector’s economic wounds are yet to heal.
However, on the other hand, the various changes, price cuts, etc., that the government and the real estate industry collaboratively introduced helped the industry survive, and to a significant extent, mitigated the disastrous effect that the pandemic was otherwise projected to have. This encouraged many homebuyers (a well over 60 percent) to buy a home during the pandemic, and which, in turn, proved a savior for the otherwise sinking real estate industry.
Why did People Considered Buying a Home During the Pandemic
The real estate sector brought in several reforms and strategies conducive to both sales as well as home buyer’s benefits. These changes served as an answer to many people who asked, is it a good time to buy a house during the pandemic. While some resulted from the economic downfall, some were strategized to drive the industry’s survival.
1. Attractive Offers on Properties
Real estate companies played it the conventional way during the pandemic. Many players across the industry offered attractive offers. It included rewards, attractive gifts, attractive prices, coupled with an emotional connection, etc., depending on the target buyers, location, and the number of units that remain unsold owing to the pandemic.
A lot of such schemes attracted potential home buyers and encouraged as many as over 60 percent to take advantage of these schemes and invest in new homes. As a result, the otherwise dipping sales graphs gained an upward push, which proved an impetus to the real estate sector.
2. Prioritizing Home Ownership
In India, or for that matter everywhere else (but let us stick to India, right now), buying a home has a strong emotional dimension associated with it. The cliché that connects home with dreams signifies the emotional aspect of home buying in India. Of course, that’s one reason real estate players leverage it to the fullest and appeal to potential home buyers, and thus, also a factor that drove sales home sales during COVID.
But there’s another side to it.
And that’s the change in work habits. Work from Home, as you all know, has become the new normal. So people, and especially millennials, who otherwise weren’t as much in favor of owning a home, have now been intrigued into it. Now that WFH is here to stay for a long time, why not own a home, customize comfort, and make the best out of the new normal. This could have been the core thought of owning a home, although yes, reasons vary with people.
Regardless, the new normal and thought stemmed from it made people consider buying a new home during the pandemic and thus bolstered sales across the real estate sector.
3. Reduced Stamp Duty
Now, this one came in from the government to revive the real estate sector. In 2020, precisely from September 1 to December 31, 2020, and then extended from January 1, 2021, to March 31, 2021, the state government reduced stamp duty to two percent from five percent.
This proved a breakthrough decision, as it, along with the many concessional offers offered by construction companies, caused property rates to plummet to a significant extent. Subsequently, it encouraged many potential home buyers to benefit from these schemes and own home during COVID.
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4. Reduced Home Loan Interest Rate
Reduced home loan interest rates were an answer to people asking, is buying a home during the pandemic a good idea. Many banks, including SBI, ICICI, etc., slashed interest rates to help attract potential home buyers to apply for loans through them. It helped many people who otherwise refrained from applying for home loans on account of the considerably high-interest rates apply for a home loan.
For instance, SBI’s reduced interest rate from 7.95% to 7.20% on a loan of INR 30,00,000 further lowered the EMI from INR 25,000 to INR approximately 23,600 INR and enabled a saving of about INR 1400 per month. Additionally, ICICI too offered a rate of 7.10% in many cases to encourage people to borrow home loans during the pandemic.
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Want to Buy a Home in Pune? Choose Kohinoor Group!
If you want to buy a home in Pune during the pandemic, or otherwise, consider looking at a few of Kohinoor Group’s projects sprawling across various areas of Pune, including Tathawade, Kondhwa, Hinjawadi, Bibvewadi, etc. The projects feature elite homes, ultra-modern amenities, and situated amidst growing localities.
Cannot step out of the home during the lockdown? Do not worry. Kohinoor’s got you covered. The company’s sales team takes you through a virtual tour, and its upcoming online home exhibition is an excellent opportunity for everyone considering buying a home during the pandemic.
For details, connect with Kohinoor at 020 6764 1839.
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