The long-lasting effects of the COVID-19 pandemic have made 2020 a difficult year for economies all around the world. Even though the fatalities of coronavirus might seem controllable for the past few months, several organizations, as well as nations, are still trying to build a different future.
Nowadays, the work-from-home has become a reality for many people. As people cannot go outside, the value of the home has become more important than any other amenities for many families. Apart from that, people have adapted to a different perspective of their lives through digital platforms such as video-based media consultation, online education, webinars, and other various types of business and e-commerce related video conferencing. These factors have ultimately increased the need for a spacious home. Not to mention, the demand for New Projects in Vile Parle East has been increased.
Some particular trends in housing; especially affordable housing in India will carry more importance as they will enhance the momentum of house sales in 2021. Here are some factors of the affordable housing segment.
1. Housing for All Mission:
The “Housing for all” initiative of the Indian government has enhanced this segment. Different rules and regulations regarding housing affordability in India such as PMAY (Pradhan Mantri Awas Yojna) and the rate cut of GST from 8% to 1% have made financially weaker families get affordable properties. These new rules and schemes imply that the GST rate of 1% will be applied for houses below 45 lakh. Additionally, the effort of the governments to extend the deadline for the Credit Linked Interest Subsidy Scheme has developed a positive impact amongst middle-class families. This is also encouraging them to purchase properties with a limited budget.
2. Affordable Rental Housing Complexes:
The ARHC has been considered as a sub-scheme under the PMAY-U. The primary objective of ARHC is to provide affordable homes to the urban migrants who are working in the informal sectors of the economy. During the COVID-19 lockdown, the migrant workers suffered the most due to a lack of welfare schemes and poor communication. ARHC schemes unlock the vacant stock of housing and make them easily available for affordable rental. It also provides perfect incentives for public entities and private companies to promote entrepreneurship and encourage investment.
3. SWAMIH Investment Fund:
This is a special window for the middle income housing investment fund that has been created to form the construction of stalled and RERA-registered housing projects that are stuck due to a shortage of money. This fund will provide great relief to the home buyers. This scheme will also provide funding to various projects.
4. Lucrative Investment Prospects:
As the property developers of 1 BHK in Vile Parle East are providing cheaper rates to clear the unsold inventories, it’s one of the greatest times for investment in the realty sector. Furthermore, the interest rate of home loans is extremely effective. This makes residents and NRIs take the home investment options seriously.
5. Model Tenancy Law:
The model tenancy law is anticipated to arrive in late 2021. The model tenancy law will eradicate all the anomalies and will enhance the real estate sector. The provisions also announced that this act would make the renting option much more affordable to the property owners.
Even though the Indian real estate market has crashed during the time of the coronavirus outbreak, these schemes by the government will surely help the market to recover.