The real estate sector had been down the previous year, due to the unexpected scenario caused by the COVID-19 pandemic. A quick resurrection of the industry has not been predicted by the trade pundits observing the business trends. Production and material costs were expected to remain low, consequent to the lukewarm response from homebuyers and people choosing real estate investment options. But what happened was completely different. Let’s go through it!
Home Construction Material Cost – Increasing Day by Day!
All the calculations and presumptions mentioned above have been proven wrong. The material cost started rising ever since the construction activities resumed. Presently, the situation has become so volatile that the prices are increasing day by day! Creating chaos (mainly) among middle-class customers. There have been a set of reasons that resulted in this unprecedented situation.
- Increase in Global Steel Prices – The cost of steel in the international market registered a rise, leading to a climb in price in the Indian market as well. Reduction in production due to COVID-19 restrictions and lack of sufficient manpower is observed to be the main reasons for the increase in steel price.
- Shortage of Iron Ore – Another aspect that impacted the production of steel and in turn caused the heavy increase in construction costs has been the shortage of iron ore. The industries have been slowly gaining back momentum. And the shortage is expected to be made good shortly.
- Cement Prices – In tandem with the steel prices, cement price also escalated registering an approximate increase of 20%. The government couldn’t pinpoint the exact cause for this phenomenon. And the ministry put the blame on steel and cement lobbies for conspiring the increase in price.
- Observation of Health and Hygiene at the Industrial Space – The pandemic has necessitated additional health monitoring requirements. This has affected the industries economically, forcing them to revise the costs.
- Shortage of Labour – Although the vaccine has been invented and vaccination drive is in progress across the country, full-fledge production hasn’t been commenced owing to reduced requirements, as well as, shortage of workforce. At the same time, the production expenditure remains somewhat the same. Therefore, the manufacturers have to charge a higher amount to meet the profit calculations.
Real Estate Trends and Opportunities in 2021
The real estate industry had been hit hard due to the widespread pandemic in the previous year. Construction activities came to a halt and homebuyers deferred purchase plans. It was a scene of anxiety, dilemma, and hopelessness in the sector. Everything changed since the initial days of 2021. Developers are happy to find slow but gradual improvement in customer turnout. Even though the rising construction cost is a concern presently, it is also expected to become steady soon.
The real estate trends in 2021 are expected to be:
- Steep rise in domestic demand and full-fledged real estate business operations by the end of the year 2021
- Customers choosing properties at the prime location that will ensure them better connectivity with important centres including hospitals and educational institutions
- Clients opting for thoughtfully constructed homes that meet their requirements. Rather than exotic mansions that may not be necessary at this juncture
- Increase in home loan interest rates by the third quarter of fiscal. It may be higher than the previously existed interest rate
- A sudden surge in the number of customers by the end of 2021
Opportunities:Considering all the said factors, it would be best if you can own a home at the earliest. It will aid in you owning your dream home at an affordable price. We have our prestigious projects ready for you at prime locations.
Affordable Houses for Sale in Kerala – 2021
OMG Properties invites you to check out our ready-to-move-in villas and apartments and book the perfect one for you. Our projects are affordable, quality-built, Vastu-compliant and installed with world-class amenities.
OMG Magnus (K-RERA/PRJ/282/2020) – Start a classy life at the most sought after location in Palakkad. OMG Magnus’ houses for sale in Vaniyamkulam is an architectural marvel that will deliver you a pleasant and peaceful life.
OMG Marbella Phase 2 (K-RERA/PRJ/285/2020) – Own a property at one of the fast-growing home locations in Kerala! OMG Marbella Phase 2 in Angamaly is the perfect choice for investment, as well as, settling down.
OMG Lifestyles Phase 3 (K-RERA/PRJ/056/2021) – This luxury villa project, OMG Lifestyles Phase 3 located in Kalepully in Palakkad, would be a matchless gift for your spouse and family with exquisite fusion of nature and luxury.
We invite you to schedule a site visit to check out the properties by yourself and choose the one most suitable for you. Contact us now.