2021 is likely to witness the growth of affordable housing projects, as the realtors focus on this segment. Eyeing the tremendous potential from the mid-income group, the developers are focusing on the affordable housing category. In 2020, more than 80% of the new projects that have been launched are priced below INR 1 crore. Residents and real estate investors are looking for 2 BHK affordable homes in Gurgaon. With subsidies on interest rates and other facilities available, a significant number of property owners have invested in real estate this year as well.
The improvement in sales is on cards across all housing sectors this year. However, the developers are likely to launch more projects within the affordable category. In the last few years, real estate developers have tried to align the supply of residential units with their demand. Besides, in the Union Budget, the government expressed its commitment to complement affordable homes. First-time property buyers would enjoy a reduction in home loan interests. Besides, the government has also extended the time to claim the profits on tax holidays from affordable home projects. Presently, this date is due in March 2022.
Recovery of the real estate sector
The second quarter of the FY 2020-21 noted a higher GDP than what was expected during the recovery phase. The real estate market also showed some signs to get back to its original health. On a sequential basis, sales increased by 34%. In the last quarter of 2020, the economy was facing several uncertainties, including reduced jobs. As a result, residential real estate is likely to recover faster. This trend has picked up pace in Gurgaon, where the developers are launching several new projects. Investors are also looking for the best affordable housing Gurgaon to channelize their funds. Across Gurgaon, there have been several new launches and sales.
Apart from this, the major cities are experiencing the migration of millennial workers. Even the centers of higher education have resumed classes physically. Within the organized setup, the occupancy levels are likely to rise. It is expected, that by the end of 2021, this level will get back to normal. In the post-Covid era, there would be more focus on wellness and health aspects. Eventually, this would drive the necessity for student housing setups and organized co-living.
During the pandemic, senior citizens who live alone were affected adversely. Therefore, it is necessary to organize facilities for senior living. In such facilities, the developers are likely to integrate amenities like foodservice, on-call medical services, assistance, and housekeeping. Eventually, the senior housing setups would show a positive growth trajectory in the coming years.
Other factors fostering the growth of the real estate sector
Presently, banks are offering record-low interest rates for home loans. This, too, would foster the growth of the affordable housing sector. With positive consumer sentiments and better affordability, the sales of affordable homes would be on the rise. Naturally, property buyers are looking for the best affordable home for sale in Gurgaon. To pave the path for property buyers to return to the market, the homes need to be affordable. This is exactly what the developers are looking at.
The real estate market in India is also likely to get a boost, with NRIs getting back to the market. Particularly, buyers from the Middle East and Europe are interested in affordable properties in India. As the economy grows stable, the sales of residential properties in Gurgaon and other cities would get a boost. Throughout 2021, this trend is likely to continue, as the sector recovers from the shock of the pandemic.
Since the mid-income buyers are likely to benefit from the PMAY scheme and other subsidies, the developers are presently focusing on this segment. Affordable homes will continue to gain popularity in 2021.