Real Estate during Lockdown in Hyderabad

Real Estate during Lockdown in Hyderabad is Home buying affordable?

RERA Licensed Real Estate Agent in Hyderabad

Real Estate during Lockdown, Home buying to be affordable

In order to push demand, amid the economy staring at a 2.5% growth in 2020, the government has launched several measures to make property buying affordable for consumers. Low interest rates and likely corrections in guidance values, could make purchases more affordable for the middle class. As it is, the tax deduction limit for first-time home buyers has been increased to 3.50 lakhs per annum, under Section 80EEA.

Interest rates to fall

The RBI has already brought the repo rate, at which it lends to banks and the rate which ultimately decides how much interest borrowers pay on home loan, to a record low of 4.4%. This was done by the banking regulator, to cushion the possible blow caused by the spread of the virus on demand in general and the economy in particular. This reduction in repo rate would make home loans more affordable for buyers. No hike in interest rate is likely, at least in the short to medium term.

Real Estate during Lockdown, Project delays may increase

Home buyers may have to wait for longer for the delivery of housing projects that were scheduled to be completed in the coming months. While construction activity has come to a halt for now, it is also not likely to pick up much speed even after the country is able to afford some normalcy. This situation might also force builders to ask for the Force Majeure clause on delays.

Construction to slow down

Amid a nation-wide lock down to slow down the Corona virus spread, thousands of migrant workers, mostly daily-wage workers, resorted to mass exodus. Since the construction industry in India largely depends on this unorganised labour force, activity is going to be slow, even when things gradually come back to normal.