2020 - A tough year for Indian real estate
It is no surprise that almost every Indian wants the real estate market in India to do well. The Indian property market is almost like the pulse of the nation and you know that if real estate in India is healthy it means that the entire economy is also on track. The real estate sector in India has been blooming and rapidly developing. In the past few years government has greatly contributed in making this sector as transparent and easily accessible to the people as possible. The year 2020 was definitely a rough road for Indian real estate too and the sudden pandemic outbreak that spread its root throughout the world which took a heavy toll on property sales and real estate transactions slowing everything in its wake.
Real estate in 2021
There are high hopes and many believe that 2021 could be much better and brighter year for the real estate market in India with a lot riding on the Covid Vaccine and other proactive measures taken by the Government of India.
But its no secret now that there were multiple industries that were highly affected than the others due to this untimely lockdown and needed new transforming trends to sustain in the market, real estate sector being one among them. With employees working from home and offices shutting down rapidly the demand for residential as well as the commercial underwent some serious changes. If we actually look at the statistics in the absorption rate, it has rapidly dropped down to almost 29 million sq. ft in the top metro cities which is almost 30% less compared to the last years absorption rate. However the targets for the upcoming year 2021 is really high and the sector is expected to shoot up and reach up to 40 million sq. ft which is almost 20% higher than the previous year’s absorption rate. Soon the world will be ready to take over the market and set new standards and the bar really high.
Plans for real estate sector
Although we are making huge and drastic plans for the upcoming year but the fact that remains unchanged is that we as a nation have still not emerged from the wave of the pandemic and people are still confined inside the four walls and due to Fear Of Missing Out people have deliberately and swiftly started slipping into their social lives by going to the clubs, malls and restaurants, a few corporate sectors who need to work on field have started filling up and slowly but steadily resume back.
Changing one’s pervious work habits, in the upcoming year, as it is convenient for the company as well as the employees Work from Home may continue as a trend many It sectors may opt for permanent work from home solutions or partially adopt it by offering employee a choice at the least for the upcoming 6 months. So it wouldn’t be a surprise if the idea of ‘Co-working’ comes in the lime light in the following years.
Commercial real estate is a question mark
India is considered as the nation with rapidly growing economy and fast yet steady development in the Real Estate sector and also offers a promising and important opportunity for investments among the nation. With the SEBI’s amendment act in action to the rules of Real Estate Investment Trust (REIT’S), while in comparison with the other sectors, It is expected to have a steady flow of investment in the commercial sector of real estate with timely, lucrative and safe returns. Because a lot of people who were residents in foreign countries NRI’s included have long term plans of returning back to their homeland due to the pandemic outbreak as this whole situation has led into panic and left everybody fearing for their own lives and the lives of their family so that might mark the beginning of the growth in the commercial sector. Considering all would want to have a private and safe space for the family and can rely upon the house may what come and can also continue to work from the comfort of their houses.
Real Estate - A safe investment option
Real Estate option was always and in the coming year will be a safe investment option to anybody who wants to invest their money in the rightful place you can never almost go wrong with this one until you are making a smart choice. Due to fast pacing urbanisation and politically stable environment the residential sector has marked uplift in the registration process post the lockdown.
A real come back for Real Estate is possible
The comeback was pleasant news after all the unpleasantness people had to face this year. Most of the mainstream markets took off really well which highly benefitted the stakeholders, investors and developers. If we were to talk about tracking the online activity of people looking for residentials which was also reported to spike up almost 35-40% since before the lockdown, the sales did pretty well the Q3 sales marked growth by 80% compared to the sales of Q2. The home buying value will continue to see a rise since people are committed into buying and moving in into their dream houses and the mortgage rates are record low and also the drive of most of the people wanting to live in the suburbs and provide top class experiences and benefits to their family.
Starting the year full of vision and optimism the real estate developers have high stakes and hopes to arise once again in 2021 . A lot of factors consisting steady economical inflow, major technological innovations progressive policies are expected to play a very crucial role.
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