Why The Rise in Real Estate Demand After Lockdown-1
We were amazed to see the unprecedented rush of buyers in the first month after the lifting of lockdown-1. I had thought now we have to sit idle for atleast an year due to the sentiments or due to loss/reduction of income.
To my surprise with each passing day I saw the seller getting an upper hand rather than the buyer. A buyer-controlled market suddenly became a seller’s market and buyers were a harassed lot. I had to contemplate with fellow colleagues to find out the reasons for this sudden surge in demand. According to me the following reasons were responsible for it:-
- There were large number of end users waiting to buy a home. Many of them were living in rented accommodation. In the lockdown they faced harassment. This led to hastening the decision to buy a house or a plot.
- The IT sector was an odd one which had the same volume of business and revenue with atleast 30% reduction in expenses as most of them moved out of rented offices and worked from home. The young IT guys who generally splurge money had finances to spare to book a residential property for themselves.
- The third reason was an all time low rate of interest of home loans. It indirectly as being ‘a reason too’ encouraged the buyers.