By If 2020 was defined as ‘survival’, then 2021 for Indian real estate was ‘survival with hope’ and FY 22 will be the emergence of the fittest. The mission unlocks, resumption of sectoral activities, pent up demand, fiscal stimulus, vaccination drive, liquidity infusion, supply-side booster measures, foreign direct investment, consolidation defines the timeline of FY 2021. The advent of new virus versions will keep building pressure on global economies, but resiliency is the key to moving forward. Covid -19 pandemic has disrupted and transformed the way we live and work. It has commenced the era of digitization in all spheres of life with reinvented customer taste and preferences.
The value of owning a home has gained ground due to the stability and security it offers, favorable market dynamics, historic low-interest rates, deal sweeteners by the developers, and the choice of inventory available. The new normal fuelled shift in customer behavior where wellness, active lifestyle, open layouts, community living, proximity to healthcare and daily convenience, the well-connected location became new growth levers. The new-age millennials entered the home buying segment with an inclination to buy their first home, whereas existing homeowners sought up-gradation with spacious homes. Soon, eco-friendly living picked up steam among young home buyers who opted for fine living that is skewed towards a well-balanced lifestyle. Work near home and walk-to-work are new catchphrases in the homebuyer’s segment with commercial real estate witnessing growth in dispersed portfolios following the Hub and Spoke model. The slew of mega infrastructure is redefining new linkages, augmenting higher demand in new micro markets with upward price momentum.
As the pandemic effects wane further, the Indian economy is gearing up with steady and gradual GDP growth, recovery in core sector indices, fresh hiring, mergers and acquisition, and sustainable demand. The sector is challenged with a lack of skilled labor, skyrocketing raw material cost, higher inputs cost impacting margins and project viability taking a toll. The Budget FY 22-23 is anticipated to infuse fresh leases into the beleaguered real estate sector, imperative for a fast-paced economic growth inclusive of employment generation. The industry pins hope to be granted industry status for availing long-term cheap credit and taxation benefits for the home buyers to take off the confidence index of the property market.
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