Is now a good time to invest in real estate ?

Is now a good time to invest in real estate (Kerala) ?

With so many economic uncertainties, is now the right time to plunge into the real estate market?

The age-old question of when to buy real estate is being asked more frequently now than pre-pandemic. With the economy in a recession due to the coronavirus and millions of people unemployed, some potential investors are wondering what they should do.

Many expats are returning back to their home state and investing in flats / villas. According to a survey, property prices in large metros have fallen 2-9 per cent after the lockdown announced in March. On the face of it, this appears to be a good opportunity for home buyers, especially those planning to buy for self-use.

Although the outlook for real estate looks less promising due to the current pandemic, about 54 percent of consumers are expecting a significant drop in the prices of residential properties as the market currently has a lot of unsold inventory. Consumers are of the view that developers would want to get rid of piled up inventory to boost their cash flows.

Should I buy or build a house?

With restrictions in place on interstate transportation, sourcing construction materials is difficult. For example, tiles are sourced from Gujarat, sanitary fittings from Maharashtra and Gujarat, and cement from Tamil Nadu. High-end fittings and even good quality clay are imported from abroad. Builders are seeking government intervention to prevent manufacturers from hiking the price of materials including cement. On the labour front, a different set of challenges awaits. Re-launching work without flouting social distancing norms, for instance, is fraught with problems. Besides, large numbers of migrant workers are expected to return, at least temporarily, to their home States once the lockdown is lifted. One option, say builders, is replacing them with the Keralite workforce returning from abroad. But how far, and by when, this would work out is a matter of conjecture.

It is ideal to buy properties now considering the availability of labourers, high material cost and uncertain work schedules due to lockdown.

Consumer preferences

Around 59 percent consumers have stated that they would prefer to live in an apartment society over an independent house as societies offer more amenities. Also, water supply, groceries, power back-up, and safety are less of a concern in an apartment complex. As many as 92 percent respondents are looking to buy residential properties. NoBroker said its annual survey indicated a steady rise of interest in commercial properties as an investment option. But the current crisis has tilted the choice in favour of residential accommodation. 86 percent consumers prefer ready-to-move-in homes as there is some amount of distrust in under-construction projects due to uncertain timelines. Unavailability of construction workers has worsened the situation in some scenarios. 2BHKs are still the most popular choice for about 48 percent of consumers.

Why Kerala ?

Kerala has the least recorded coronavirus cases compared to other states and probably across the whole globe and it’s real estate market has started to boom.

Competitive property pricing

Just like any other products or services, competitive pricing is yet another significant factor to boost the demand for the products and services. Kerala Real estate properties are priced at competitive levels. Even if the state offers a comfortable and satisfactory condition of living, the pricing for the properties is lesser, compared to the other parts of the country. Hence, you can reap significant gain from investments in Kerala real estate properties.

Stable Social and Political Situation

Kerala offers a sound social framework and secured political situation. For several decades, there have been no records of extremists growing in this state and hence, residents can lead a safe and secure life in Kerala. If a state has stable social and political standing, people can lead a safe and comfortable life, and get a positive ambiance for education and profession. Hence, it stands assured that life in such destinations will be enjoyable. It is especially relevant to state that Kerala features a low-level standing in terms of the national crime rate. Thus, people can escape those threats and lead a peaceful life. These factors have contributed to making Kerala a much sought-after destination for real estate investment.

All things considered, the burning question remains: Is it wise to buy property this year? The answer is yes! Real estate will continue to remain an attractive asset and be a sense of security for any buyer. Especially with prices being at a standstill, now is a great time for buyers to leverage this, and as a ripple effect, revive the great Indian economy.

Projects in Kochi

Location Floor Sq.ft Type Amount Specification, Photos & Floor Plan
Kakkanad 3rd & 12th 1716 3bhk 62,34,400
Kakkanad 19th 1946 3bhk 73,08,300
Kakkanad 19th 2086 3bhk 78,05,300
Kakkanad 6th 969 2bhk 37,22,350
Kakkanad 11th 625 1bhk 26,18,750
Location Floor Sq.ft Type Amount Specification, Photos & Floor Plan
Location Area Sq.ft Type Amount Specification, Photos & Floor Plan
Kakkanad 6 cents 2414 4bhk 1,45,000,00
Location Area Sq.ft Type Amount Specification, Photos & Floor Plan