Investments in plots and land
Considering the social distancing norms due to Covid-19, people are willing to invest in land or plots as a long-term investment. People will then set up their homes as per their requirements. Self-owned homes offer optimal implementation of social distancing. The trend is being expected to speed up and pave the way for real estate recovery.
Government initiatives
The Government of India has taken several initiatives to encourage development in the sector. The Smart City Project, with a plan to build 100 smart cities, is a prime opportunity for real estate companies.
The Atmanirbhar Bharat 3.0 package announced by the Finance Minister in November 2020 included an income tax relief measure. This was for real estate developers and homebuyers where primary purchase/sale of residential units valued up to Rs 2 crore.
The reduction in stamp duty has also led to a significant surge in sales of homes in Maharashtra, particularly in Mumbai. This comforts the long-beleaguered real estate sector of this region.
Schemes like Housing for all by 2022 and PMAY have further boosted the growth of the real estate sector. These initiatives by the government will be a major contributor to push the growth of the home-buying process in the coming months.
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