The Covid-19 outbreak has, undoubtedly, brought about a significant halt to
global business cycles and economic activities. Millions of people across the globe
have been affected due to this pandemic, and it has impacted various sectors,
including real estate that faced disruption. Still, there is also a hope for recovery.
The market is slowly getting back on track, and according to market sources,
Bangalore’s real estate market will bounce back faster as compared to the other
markets.
According to a Consumer Sentiment Survey by ANAROCK, Bangalore was among
the most preferred cities as about 82% of the respondents had booked their
homes either during the lockdown or just before it. It further states that 48%
respondents preferred residential real estate as the best investment option
during Covid-19 against other asset classes mainly due to lower risks attached,
and 54% respondents considered ‘now’ to be an ideal time to buy a home as they
have the opportunity not just to negotiate a good deal but also get home loans at
all-time low-interest rates.
Reduction in stamp duty: The Karnataka government’s timely decision to cut
the stamp duty rates from 5% to 2% for properties costing up to Rs 20 Lakh and
5% to 3% for properties priced between Rs 21 Lakh and Rs 35 Lakh came just in
time when the pandemic was at its peak. This reduction aimed to boost the
volume of property registrations and aid homebuyers during the pandemic. The
move brought about a positive sentiment for properties with stagnant prices and
unsold inventories.
Facilitating digital home buying: Surprisingly, even though the lockdown did
cause an inconvenience for people to visit sites to make their final buying
decisions, customers have been engaging proactively through digital platforms.
This is a shift that we may witness even in the future. Developers have now given
homebuyers the privilege to sit at home with their families and have a virtual visit
to the house they aspire to buy.