With the onset of the pandemic, it was anticipated that the real estate industry might see a dip, but surprisingly the consumer behaviour was quite different than expected. People have begun to value home more than ever before and are also getting particular about their choices. Malabar developers’ apartments in Calicut and apartments in Trivandrum have seen an increasing demand during the year 2021.
The case with our apartments in Kottayam was not lesser. More and more people are also looking forward to apartment purchasing options in Kottayam as well now. And our apartments in Kochi for sale have seen an ever increasing demand like never before. All this particularly indicated that the year 2022 is definitely going to see a rise in the purchase graph.
What made the year 2021 favourable for home purchasing?
- Reduced home loan interest rates
2021 witnessed a meteoric bounce back after the pandemic in the residential real estate. The need to own a home regained its paramount importance in the minds of the Indian families.
The decline in interest rates and stamp duty cuts acted as a catalyst to the growing demand for owning a home.
Since 2014, the property prices have risen at a compound annual rate of 1-2 per cent. This rise was however slower than inflation and was lagging behind income growth.
On the one hand, property values have remained stable. And the average yearly income growth of people has been between 8% and 10%.
The property price then was roughly six times a buyer’s annual income in the year 2000. And in 2021, the average price of a home that was acquired by an individual was four times their annual salary.
Affordability has thus increased across people of all cities, between 2011 and 2020. A sharp decrease in the average home loan rates from around 8.9% in 2019 to below 7% now, has further been favourable for the lower incomes’ affordability.
Some bank’s interest rates in 2021 are as low as 6.65%. With the present house loan interest rates, a person can easily acquire an additional loan of around Rs 6.5 lakhs and the EMI is reduced if the person takes the same loan amount.
- Attractive offers by builders like Malabar Developers
Home loan interest rates are just one aspect of the affordability factor. In order to help the purchasing decision of the people, real estate leaders like Malabar Developers came up with interesting offers and discounts making it much more affordable for the buyers.
Several new projects have also been initiated. This definitely indicates that demand is increasing even in these difficult times.
- Expecting an Increased NRI Investment
The NRI investment in the Indian residential market, in the post-COVID scenario by 2022, is also expected to increase due to reduced uncertainty associated with pandemic.
Increased transparency due to stricter regulatory measures and superior foreign exchange conversion rates are also a reason for favouring a higher investment by the NRIs.
Statistics denotes that the year 2022 will be favourable for a buying decision
In the total housing sales, the share of ready-to-move-in (RTMI) increased to 21% when the pandemic hit 2020, up from 18% the previous year.
It is estimated that the RTMI properties will have limited supply by the end of 2021. Thus in 2022 we will witness an increased demand for newly launched properties.
Year 2021 has seen an increasing demand for apartments everywhere. Our apartments in Kochi for sale, have seen a more positive demand than ever before. We expect that the year 2022 will also be a year that will witness apartments in Calicut and apartments in Trivandrum sell off like a spree.