The real estate outlook for 2021 is positive, and the sector is poised to be one of the critical drivers to revive the flagging economy in the country. After a genuinely challenging 2020, the real estate sector is infused with hope and renewed vigour as we step into the early part of 2021. The winds of change are already blowing for both the end-users as well as the developer fraternity. A slew of reforms by the government such as sanctioning of more funds for affordable housing to incentivizing financial institutions to the disbursement of more home loans has given a much-required stimulus to this vital sector, one of the pallbearers of the economy.
Since shelter is a basic need, there will always a sizeable demand for this segment. Several factors are expected to drive this demand this year. Most buyers have realized that the ‘work-from-home’ routine is here to stay, prompting them to hasten their home-buying. This purchasing spree is expected to extend to the outskirts of the metro cities and includes townships and independent houses.
Of course, the home loan rates being at an all-time low currently is a key factor for the growth spurt in this sector. On top of this, some state governments are offering discounts on stamp duty and registration as well. Additionally, some developers are also doling out attractive offers and special schemes to benefit its customers.
Bigger houses, more open spaces and affordable pricing are expected to be the buzzwords in this segment now. This is why townships in the fringes of the big cities are becoming more attractive for potential buyers. Affordability today is even more important owing to the crippled economy and job uncertainty that has struck us all.
The trend of searching for homes via online realty portals, which grew by 60-80% during the pandemic’s peak, is expected to continue to rule the roost, at least for the first six months of 2021.
The commercial segment will continue to be the preferred choice of investors this year thanks to assured and lucrative return on investment. Experts in the sector reckon that as more offices and businesses start to record higher physical attendances, gross leasing activities will pick up to the tune of 40-42 million square feet in 2021.
The Indian IT industry continues to be competitive and should still draw global interest, considering that almost all businesses will become more efficient after the pandemic. The successful launch of India’s second Real Estate Investment Trust (REIT) during the pandemic is sure to give a boost to this segment.
Warehousing witnessed significant traction even in 2020 and will continue to attract investments given the boom in e-commerce, the need for cold chain infrastructure, a boom in the use of data and meaningful government directives with regard to storing data.
Leading players in the industry like Arrjavv are cognizant of the new market scenario and are coming up with bespoke projects to cater to the current demand. Only such top developers who have the resources to adapt and the agility to respond to the current market conditions will flourish and attract more buyers. It is imperative for any builder to bear in mind that the market is now driven by the customers only and so the products must be appropriately planned, high on quality and delivered well on time.
All in all, if you are looking to invest in real estate, now is the perfect time to get started!