Why Investing in Realty Projects in Gurgaon During COVID-19?

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Health workers, doctors and scientists from across the world are busy fighting with Coronavirus pandemic, while businesses and realty markets, on the other hand, are struggling to maintain their workflow rigorously. There are many uncertainties regarding finances, careers, jobs, stocks, dividends, and bonuses. It has significantly affected the homebuyers and investors alike who were focusing on investing in real estate before the pandemic. Because of the nationwide lockdown, the economic activity has become standstill, hampering the income and consumption.

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In between all these things, should one consider investing in real estate Projects in Gurgaon? The clear answers seem to be “no” for many investors, but there are many benefits in investing in this tangible asset during the COVID-19 pandemic.

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Home Loan Interest Rates are at its Low

Reserve Bank of India or RBI had announced to lower the repo rate, and this will bring down the overall interest rates of home loans. Most of the banks have already started offering repo-rate linked home loans. Presently, the repo rate is 4.4%, and it has been reduced to 3.75%, which is the lowest ever. So, homebuyers with huge liquidity to invest must consider this time to invest in real estate and get a home loan approved before things are resumed.

Better Chance for Negotiations

Property agents and builders are getting desperate to clear all their inventories and un-used assets to resume the cash flow and generate liquidity. Some developers and builders are also offering the benefit of refundable booking amounts, to attract new homebuyers in Gurgaon. So, it is the best time now to negotiate a deal with the agents and builders.

If you have already seen the apartment or property before lockdown, then it is the time to make a decision. For all under-construction projects, you can take a virtual tour or 3D tour of the property before making a decision. It will help you understand the location benefits, amenities, neighborhood and facilities integrated into the project.

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A slowdown of Demand and Supply

Demand for new realty projects has dried down during lockdown, and no new supplies are entering the realty market. Once everything resumes, it will take at least 6 months for the realty market to gain momentum. Developers would take at least 1-2 months to resume construction work post lockdown because most construction workers have left for their hometown before lockdown.

It indicates that the supply will take a longer time to pick up the pace than demand. It can bring an upward trend in realty prices after COVID-19, and this means you need to pay more than what you are paying now during COVID-19 for the same property. So, it is the best time to invest in real estate projects to save money on premium properties.

Real Estate is the Best Asset Class

Real estate projects are the safest bet for buyers and investors, even during the COVID-19 pandemic. The real estate projects have proved to be the ultimate asset class in regards to both regular income and capital value appreciation. Developers and builders are getting investor queries about buying the projects under the Affordable Housing Scheme and pre-leased properties, which are having a higher demand for being given on rent.

Once everything resumes, developers would expect higher returns from the market, which makes this time perfect for signing the deal. The expected ROI from the real estate sector would be two times higher for residential propjets and 1.5 times higher for commercial projects within 3-5 years post lockdown. Moreover, the value of Indian rupee has registered a decline because of the downfall of the global economy. It may attract NRI investors to invest in real estate projects in India in the coming months.

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Festive Season Deals

Though the festive season in 2020 may not be the same as the previous year, developers and builders are still expecting to see new customers for their inventory. To attract new customers, the builders are desperately offering immense discount offers on best properties during the festive months, which make it the perfect time for investors to grab the opportunity to save money on real estate projects.

All these pros may not confirm a brighter future for the Indian realty sector, but it is surely the right time to put your liquidity and reap the benefits before the market becomes stable.