Kochi: Real estate sector on the path to recovery

Greeshma Gopal Giri / TNN / Jan 11, 2021, 12:33 IST

Text Size

Small
Medium
Large

With the RBI slashing home loan rates, there’s a renewed interest in sale of apartments in the city and suburbs. While the demolition of flats at Maradu created negative sentiments among buyers and investors, it took a further beating with the outbreak of the pandemic and resultant lockdown in 2020.

Kochi: Real estate sector on the path to recovery

Representative image

KOCHI: With the RBI slashing home loan rates, there’s a renewed interest in sale of apartments in the city and suburbs. While the demolition of flats at Maradu created negative sentiments among buyers and investors, it took a further beating with the outbreak of the pandemic and resultant lockdown in 2020.“The real estate sector in the city is on the path of recovery. But the new projects are going to become more expensive. When family size increases, buyers opt for 4BHK against the earlier trend of 3BHK. The demand from NRIs in the Middle East, Europe, the US and other places have withered. Real estate sector is sustained by local demand,” said Najeeb Zakkaria, joint secretary, Credai National.Builders and registered real estate agents confirm that “it is the end users” who are keen to buy property in the city and its neighbourhoods. Home loan rates have reduced like never before. From the customer perspective “it is an encouraging factor”. Afsal PA, a registered agent said, “There is demand for budget apartments starting from Rs.35 lakh to Rs.55 lakh. This is the segment which witnesses high sales. The demand is for new projects and ongoing projects compared to flats put on resale. However, the luxury or premium segment is yet to catch up,” he said.

Both builders and agents say that no significant price correction has occurred in the market. Credai pointed out that though the Centre has been encouraging state governments to bring down stamp duty, the state government is yet to take a decision on this. The price of cement and steel are skyrocketing. This not only jeopardises completion of ongoing projects, but also makes projects expensive.“If the government takes steps to reduce stamp duty it will lead to an increased number of transactions and bring in more revenue to the state. The state government can also take up the need to reduce the price of steel and cement with the Centre. These two steps will give a much-needed push to the real estate sector,” added Zakkaria.

End of Article