Although the second wave of the COVID-19 virus has played spoilsport, realty developers continue to profess high hopes in the sector making a comeback. Residential home sales took a big hit in April and May this year, driving down demands by an estimated 50 per cent. Nevertheless, developers have expressed confidence in the sector making a turnaround as pent-up demands for homes are expected to drive up housing sales in coming months.
Mahi Agarwal, Sector Head and Assistant Vice-President, Corporate Ratings, ICRA, said that key demand drivers like low home loans rates, income sops and affordable housing will assist in a faster recovery by the sector. These factors have already driven up housing sales in cities like Mumbai, Hyderabad and Chennai. Modi Builders, a real estate company in Hyderabad, has witnessed positive interactions with prospective home buyers through its wide range of residential projects in Hyderabad.
“Other cities, such as Hyderabad and Chennai, also recorded a fast recovery on the back of continued commercial real estate activity, which, in turn, supported residential demand and high proportion of lower ticket-size housing,” Agarwal added. Non-metropolitan cities like Hyderabad have been a favourite destination for young professionals as well as millennials. Apartments in Hyderabad are available at much more affordable rates than metro cities and this has been a major pull factor.
Realty developers like Modi Builders have a significant presence in Hyderabad’s residential real estate sector. It has affordable flats in Kukatpally, courtesy its Elegance project, which provides home owners with the best of amenities and world-class facilities at a bargain. The pent-up demand for housing is expected to come through for the realty industry and aid its recovery. Chairman of Godrej Properties, Pirosha Godrej said that since lockdown restrictions have been lifted, conversion rates will definitely go up through the roof.
Recent developments such as the state government increasing the slots for property registration is a positive indicator of things to come. Lower interest rates, tax sops for affordable housing, budget pricing and other additional incentives will surely draw the attention of home buyers. Real estate players like Modi Builders will have a lot to look forward to if the current trend continues throughout the year.