Today, given the recurrence of huge economic variations in the graph, real estate investments are at a standstill. Realtors have not seen the required elevation in terms of purchase and sale of real estate properties since January 2020.
The Global Investors’ Summit that was conducted in the year 2019 was an ideal sneak peek into the onset of the current real estate scenario. Investments worth Rs 35,478 crore were promised in the real estate sector and it was observed that despite the economic slowdown, which affected the sector, the State has managed to realize half of this figure. It was also seen that people were investing in apartments near Chennai airport to ensure land value, even during the days where the pandemic is at the peak.
Considering the number of flats for sale in Kottivakkam and other developing areas of Tamil
Nadu, real estate has become a very sensitive sector for many investors. The problem with this is that investors are not able to objectively analyze the merits of a purchasing decision. Due to the specific risks associated with real estate investments, it doesn’t make sense for every investor to go on exploring newer areas and investing in lands with the required resale value. On finding the appropriate properties, realtors considered diversifying outside of the real property to sustain its value.
According to an article published in the Indian Express, these real estate projects are worth a massive Rs 15,000 crore and another 53 projects that have been committed, worth around Rs 18,000 crore, are awaiting approval. Officials are positive they will also be realized soon. Seven of these projects are in the initial stages, wherein the developers have just applied for planning permission.
The chairman of CREDAI Tamil Nadu, S Sridharan says realising Rs 15,000 crore investment in the current market condition is an achievement. “Most developers are waiting for the single-window mechanism, promised by the State government at the Global Investors’ Meet, to come into effect. Once in place, the remaining investments will also come into the market,” he said.
Anuj Puri, the Chairman of ANAROCK Property Consultants told a press conference that the
slowdown in the real estate sector is not just the outcome of an economic downturn. Various other factors also played a role, including the roll-out of multiple reformatory changes over the last few years. These changes were very necessary to cleanse the system and as anticipated it did slow down the momentum of the real estate sector. However, the innumerable measures and sops announced by the government and RBI in the past several weeks are likely to increase the overall economic growth. These measures spanned across
sectors and industries, thereby uplifting the economy as a whole. The most recent measure was the cut in Corporate Tax which will most likely boost investments in India in a few months.
Hence if you are a real estate investor or a realtor, you need to account for several factors and up your competitive game and prepare yourselves for the upcoming scenario.
Here are a few points that investors can consider undertaking while the sector is recovering from an economic downturn.
1. Going digital with the storage and organization of property-related documents.
2. Obtaining full coverage insurance for your property.
3. Keeping a tab on your taxes that can be leveraged to sell one property and buy another without paying capital gains.
To know more: apartments in Manapakkam