Real estate market is showing a positive trend in demand for affordable housing. The Covid-19 pandemic has given a boost to demand for houses in II tier and III tier cities. This demand shift is due to reverse migration, larger spaces and low cost of construction. Many leading developers have shifted their focus on sub-urban locations as most of these locations are well connected by metro rail network, multi-lane expressways. Leading developers like DLF, Emami Realty, ATS, Omaxe and Alpha Corp have shifted their project interest in these locations where due to lower cost of acquisitions, the developers are able to acquire large stretches of land to make well organized integrated township. These projects are developed to make life of flat buyers easier with completely developed infrastructure with hospitals, school, parks, Mall etc.
Buyers get attracted due to affordable pricing, availing more space and due to fast developments that is taking place in tier II and tier III cities the property prices are also expected to increase therefore higher ROI.
Post COVID there is a trend among flat buyers to give a safer option to their family to be away from the hustle – bustle of a metropolitan yet offering all facilities of an advance city.
The demand of commercial space and shops in Malls have shown substantial positive shift due to expected large influx of flat buyers in these areas. KW Delhi 6 is a project of KW Group in New Raj Nagar Extension on NH 58 in Ghaziabad. The project has been experiencing steep rise in demand for shops in post COVID situation. They have adopted newer strategies to provide online facilities for negotiating, attending regular webinar where the prospective buyers come in contact with top management, get answers to their enquiries and virtually updating buyers with progress in the project constructions. Buyers of shops are investing for better return on investment compared to ROI in projects in metropolitan areas.
It is now evident that unlike other industries especially in service sectors real estate industry is doing better in post COVID situation. Though there is a shortage of cash available with individual but with backing of banks loans on easier terms and special discount offers from Developers are keeping the demand surging upwords. Another reason for upward surge in housing demand in tier II and III cities is lower investment requirement. There is one segment of home buyers who want to buy second home in a secured gated housing complex in sub-urban areas. These complexes have all required facilities within the housing complex.
Affordable housing projects are gaining strong foothold under different government housing schemes. And buyer’s confidence has gone up by implementing stricter rules through state and central government controlled agencies such as RERA to safeguard the interest of buyers.
KW Group's Anthem.