Investment opportunity in Real Estate 2021


What to expect in 2021? While there is still a long way to go, the worst is behind for the residential sector. The challenges faced by residential real estate in 2020 have, in fact, become the catalyst in providing stimuli to the industry for sustained growth. With people spending an inordinate amount of time at home, the lockdown re-established the importance of owning a house. At the same time, the Central Bank is leading the way to recovery by holding policy rates at historically low levels to initiate a cycle of consumption led growth. This has resulted in extremely low mortgage rates. And, prices have also been stagnant for the past few years. This affordable synergy makes it a great time to purchase a home. Furthermore, the market is also witnessing renewed interest from Non-Resident Indians (NRIs) impacted by economic uncertainties in Europe and the Middle East. Only credible developers, who are customer-centric and possess proven execution capability as well as quality products will survive and emerge stronger in the ‘next normal’. The preference of buyers for such developers with a proven track record will drive further consolidation, increase transparency and drive the sector to the next phase of growth.

JM Urban Spaces is backed by M/s. M. R. Mutha and 6 decades of experience in Construction, Engineering and Real Estate Space is Positioned to benifit from present uptrend. www.jmurbanspaces.com

Remote working practices will increase the attractiveness of suburban markets. Suburban markets offer lower density environments and more spacious apartments at affordable rates. Since, travel to office may no longer be an everyday activity, the importance of connectivity to office hubs will no longer dictate home purchases. Projects in location like Chakan etc. would benigit due to price advantage and quality product availability.

Ready Possession is a big advantage as lot of projects due to cash flow cycle and Panademic have got delayed and created mistrust in customers. Demand from NRI has picked up due to uncertianity in global job market there is small trend of retuning back to country or atleast investing in the  home country.

Senior citizens living alone were the most impacted during the pandemic. The role of organised senior living facilities, which are designed with senior friendly amenities such as medical support on call, services for food, housekeeping and assistance around the clock became more prominent during these trying times. This has increased the attractiveness of such facilities and demand for organised senior housing setups is expected to pick up in the near future.

The increase in home purchase affordability has been one of the most important factors driving sales and paving the way for buyers to return to the market. Residential prices have remained stagnant over the last five years while household incomes have witnessed steady growth. In 2021, even if we assume residential prices in certain markets to move upwards, the mortgage rates are expected to remain at historical lows and annual household incomes will increase as the economy recovers. This will result in improved home purchase affordability, as evidenced by JLL’s Home Purchase Affordability Index. A combination of increased home purchase affordability and improved consumer sentiments will further lead to the translation of pent up demand into sales.

The reputation and execution capability of the developer will become even more important in the decision making process of homebuyers. Prominent organised developers who adopt a customer centric approach will emerge stronger in the post-COVID era. Resultantly, consolidation of the industry in favour of organized developers will garner pace. Only the fittest will survive and capture a major share of the market. Importantly, this will lead to greater transparency and improved consumer sentiments. Developers in the past few years have been focusing on aligning supply with demand. Strong fundamentals in the form of increased demand-supply alignment, increased affordability and transparency, greater demand from end users, good financial health of banks, and the effective implementation of Government reforms such as RERA will support the broader recovery of the residential market in 2021.

Pune is stands highest in terms of affordability in whole country (top seven cities data and the affordability is getting better as time passes by.

Enjoy Investing and remember 2021 is the year of Real Estate Investment!

Pritam Mutha.

JM Bliss - Chakan - Pune

JM Urban Spaces - Engineering Luxury into affordability.

www.jmurbanspaces.com

jmurbanspaces@gmail.com

credits: naredco.










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