Real estate to grow at over 75 percent YoY
After being hit hard by Covid-19 due to scarcity of labour and low budget spending, India’s real estate industry is now gathering pace and is on the course to healthy recovery. According to a report on the sector by Infomerics Valuation and Rating Pvt Ltd., a SEBI-registered and RBI-accredited financial services credit rating company, the commercial segment which is relatively a more formal segment (with big players involved) has seen an influx of investment.
Among dominant markets, Bengaluru, Chennai, and the National Capital Region (NCR) recorded the largest recovery in the September 2021 quarter. Information Technology (IT) remains the largest consumer of space during the quarter, occupying 34 per cent of the space transacted.
The report said that with regard to residential spaces, the interest rates on home loans (October 2021) is likely to act as an incentive for prospective buyers. Along with that, the buying decisions now factor in adverse impact on income, ‘thriftiness’ caused by unforeseen emergencies, ‘access to large green areas’ and ‘access to good healthcare’.
The Infomerics report outlines the various initiatives taken by the government to help and bolster the sector like tax holidays for affordable housing projects, tax deduction on interests on housing loans in the Union Budget 2021-22 augur well for the industry. Further, the interest rates on home loans (October 2021), and festival offers are likely to act as an incentive for prospective buyers.