While the real estate sector has transformed significantly over the past few years, the pandemic has accelerated this change and the market seems to have embarked on a long-term upward trajectory. The previous year has been one of the breakthrough years for real estate as the industry showcased resilience, innovation and performance. The sector has seen a significant bounce back and the incentives announced by the government and low interest rates, renewed buyer confidence, shifting workplace dynamics and new opportunities for young buyers to pursue their first homes further fuelled the demand. The pandemic has accelerated a number of structural trends and will see long term impact on the nature of real estate business in India.
This presents multiple opportunities for investors looking to recalibrate their strategy towards growth sectors and this is already evident in the rapid investment being allocated towards the residential segment and real estate in general.
According to a recent report, housing sales increased 13 per cent in 2021 and largely synced with the recovery of other sectors.A much sharper growth was seen in terms of new supply in 2021 as against 2020 as 2.14 lakh units were launched in 2021 compared to 1.22 lakh units in the preceding year, showcasing an upward swing of 75%.
The rising recognition of health, sustainability and stable investments has boosted housing demand. Customer confidence and market sentiments have strengthened by a positive atmosphere and most importantly, by the acknowledgment of real estate assets as guarantor of a secured future. The tide has surely turned and people are buying homes to actually stay in themand not for investment purpose alone. Homebuyers nowadays have been looking at abodes and brands in a new way, and a lot of first-time homebuyers have entered the market.
Given these factors, residential real estate today has metamorphosed itself into a buyer-centric market with a bright future. The continuance of hybrid work models has allowed developers to aggressively market multifunctional homes and we will continue to see unique project offerings and ample choices for home buyers. We are also witnessing continued demand for ready to move in and nearing completion projects.
What do we expect as we go head? With work-from-home and becoming the norm, owning a home is not just an asset class for investment, but a necessity. Home shoppers will enjoy advantages that stem from a competitive job market, rising income levels, workplace flexibility and the freedom to live and work from anywhere. All this has helped unleash new dynamics in the market with the pandemic bringing an increased focus on housing affordability.We expect buzzing home sales activity to persist, the city’s periphery to maintain its top spot as the most in-demand region. The pandemic has also heralded a shift in customer preferences towards organized developers with sound credentials and an excellent track record.Buyers now look for modern homes offered by trusted developers in localities with well-developed social infrastructures like shopping centers, schools, hospitals, and banks, cinema halls and restaurants etc.
While innovation & digital transformation will drive the industry going forward,it is an opportune time to buy a dream home against the backdrop of economic stability prospects and a conducive policy landscape. The industry also foresees greater penetration of technology and prop tech would continue to drive major sales for the real estate companies and it is an appropriate time that the buyers take advantage of the current situation to seal the deals as prices may go upwards under the pressure of increased costs.
In fact, 2022 looks very optimistic as the segment is on the path to not just regain the pre-pandemic momentum but surpass it. Economic fundamentals are thus expected to remain strong enough to continue the uptrend for the real estate sector going forward and there will be continued buoyancy in demand.As we march ahead, the industry is set to see a new phase of growth, innovation, technology, and investment trends.The conscious consumer shift towards quality, growth-worthy location, amenities and lifestyle are some of the strongest trends that have been reshaped and will materialize in the future.The long-term potential for growth and attractive returns has ensured that investors continue to infuse the much-needed capital in the sector.The government must acknowledge the important role played by the sector and make deep policy reforms to accelerate growth. There has been a huge amount of pent-up demand generated over the past couple of years, which is now unlocking, giving a positive flip to the market.
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
