The Year that was 2020
I don’t think anyone needs to spell out that 2020 was a forgettable year for majority of the people reading this post.
Covid 19 wreaked havoc in personal and professional lives of many people.
Many industries faced a massive downturn and Real Estate was no different.
The pandemic has devastated the demand in the economy.
Every Industry is still recovering and I sincerely hope that everything gets back to normal and the economy, industries and individuals can get back on track to what they were before the lockdown.
Damn you China!
I personally changed a job in 2020 not due to the lockdown however just that I got a better opportunity and I started my blog ! 🙂
2020 For Zirakpur Real Estate
2020 was a mixed bag for the Zirakpur Real Estate Industry.
The year started well with demand being steady from January through March.
Then the covid lockdown struck and everything stopped.
Zirakpur Real estate generally has a demand that outweighs the supply most of the year but 2020 was different.
Thankfully the demand picked up really well after the lockdown ended and the pent up demand materialized into good number of sales after the lockdown.
The government helped with lowering of home loan interest rates and some builders offered extra discounts and freebies.
The lasrt month of the year again saw some slowing of the demand due to the ongoing farmer’s agitation.
Overall 2020 was a mix bag for the real estate industry in Zirakpur.
Who was the client in Zirakpur ?
I would really like to complement some smart investors who have bookde commercial and residential spaces at a bargain during this year.
Extra discounts were offered and I got many people a deal that they couldn’t just refuse.
Mostly the client this past year was the end user and not the Investor. Only a few investors who had enough cash in dared to invest this year.
But They got a great deal and I am sure they will reap the rewards in terms of price appreciation and guaranteed returns in the coming years.
Looking Ahead to 2021
I foresee the following trends in the Zirakpur real estate market in 2021:
- Supply of good apartments will tighten: Only a handful of new projects will be launched and Ready to move inventory will be absorbed from the market by the mid of the year
- Steady Demand: The demand will stay normal until the mid of the year after which it is expected to pick up substantially as the stimulus measures both international and national come into play.
- Discounts will decrease: While the customer expects a bargain just because he thinks that the demand is low and that the builder will throw away an apartment for peanuts, The converse is true. The land prices have increased, The construction costs have gone up and interest rates for builders have remained constant. Many builders have recently increased their prices in the last month. This trend will continue in 2021 and anyone expecting a hard bargain is sure to be disappointed.
- Rental Yield VS FD interest rates: The rental yield vs the FD interest rate is almost the same right now in Zirakpur and it will further improve as the year passes by provided the RBI does not increase the interest rates offered on the fixed deposits. (highly unlikely because the government is looking to spur spending and not savings). A smart investor will understand why this ratio makes buying real estate attractive right now.
I have written a detailed blog on whether this is a good time to invest in Zirakpur?
My Advice to the Real Estate Investor in 2021
Do not wait for the Real Estate market to bottom !
The worst is over and the builders are now on a price escalation spree.
If you are a smart investor who has some spare cash, you will be able to get some great deals in the current market.
I recommend you read some of the below linked article to gauge a mood of the Real Estate industry in India.
According to a survey conducted by the popular website Nobroker 89% respondents think this is the best time to buy Real Estate.
Mumbai Real Estate Market is generally considered a good indicator of the Real Estate mood in the country.
Times of India in this news report states that December property sales in Navi Mumbai have broken a fiver year record for the month.
Where to Invest ?
You can also hire a good property agent to find the right investment products for you: Decoding the role of a good property dealer
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Incase you have any question feel free to get in touch with me and I will try my best to help.
You can get in touch with me on : 6283060221