The Indian real estate sector has managed to register a strong resilience against the ongoing pandemic. Despite the early setbacks, we have seen how promisingly the sector has recorded considerable growth in the Q4 (2020) and Q1 (2021) quarter which culminated in April 2021. However, the second wave has managed to disrupt the growth trajectory of every industry with partial lockdowns and movement restrictions slowing down the economy. But against the common expectations, the real estate sector is well prepared to sustain its growth trajectory. Let’s take a quick glance at some of the statistics and reasons that will make real estate a promising asset class for investments in the year.
The Silver Lining
Some of the recent surveys have pointed out that market indices have been strong across the country. The sales of residential properties across 8 major residential markets of India have grown significantly by 44 percent in the Q1 of 2021. Real estate trends have characterised that 80 percent of the prospective buyers are planning to buy a new home within a year. A notable 65 percent of the buyers are planning to opt for a ready-to-move-in property as well. The buyer sentiments are largely influenced by the conducive government policies, flexible payment plans, better investment opportunities, and the adoption of technology across various stages of real estate.
Work from home factor
As we all know, the Covid 19 pandemic has bought a paradigm shift to the office culture. The Work from Home culture has become more prominent. This has largely influenced the buyers to look for spacious luxurious homes where they can bring their office home. A dedicated living room space can be leveraged for the purpose of an office within the home. With a lack of migration and rentals, people will start opting for better homes within their hometowns. The advantage of saving rents and travel expenses are widely expected to be used to upgrade the lifestyle. In this regard, we can expect a residential real estate boom in Tier 2 and Tier 3 cities as well, says surveys.
The Luxury Projects
As expected, the high-rise apartments, gated communities, and luxury apartments will continue to witness growing demand from high net worth professionals like NRIs, entrepreneurs, etc. The eased norms of investments by the apex bank RBI can be expected to continue benefitting the real estate investments, along with other Government initiated policies.
On the sidelines of the pandemic, buyers have become more cautious in approaching real estate properties. They want to eliminate the market risks as far as they can and secure the choices. As a result, surveys are predicting that ready-to-move-in homes will witness an increase in demand. The under-construction properties take time and in a fast-moving world where buyers’ preferences are changing rapidly, ready to move in spaces have become an alluring choice for them.
The whole world is turning digital and so does real estate. Digitization of the sector is largely taking advantage of the business by giving both the buyers and investors to take highly informed decisions. All the sales enquiries, business deals, and even closing the sales pipeline is happening digitally. Buyers and investors are adopting digital methods for searches, enquiries, and negotiations. The digital transformation has further brought more convenience and transparency to the real estate sector.
The resilient real estate and emerging trends are shaping the real estate sector for only better. As always, trusted real estate developers with a proven track record and strong financial affluence can be expected to reap the market advantage. Rightly so, all the developers have started to take a strong customer-centric approach in terms of delivering projects. The vaccine rollout and economic recovery are poised to happen any time soon, and the Foreign Direct Investments in India will keep up its good pace. All these factors are hinting at an improved market outlook in the real estate sector in the future.