Real estate to grow at over 75 percent YoY
The report stresses in the part that if the situation continues, then even reducing the home loan interest rates would not be quite effective. Amid Covid-19 pandemic uncertainty, investors stayed away due to the uncertainties in the property market. In 2019, around Rs 1.59 lakh crore worth of luxury housing stock was unsold (which was around 34 per cent of the total unsold homes across top residential markets).
Further, the report also mentions that the possibility of the third wave of Covid-19 and the emergence of delta variants, however, causes concern for the industry.
The report mentions that post-pandemic, the real estate industry has been witnessing drastic change over the past two years. While the Covid induced ‘work from home’ model reduced the demand for commercial spaces, it increased the demand for residential spaces. However, commercial investments augur well, given the scope of business activity in India & this can be clearly witnessed with the on-going developments in Indian business space as more companies are being formed as they touch greater heights of expansions with need in working spaces.
Moreover, about 88 crore people are expected to live in urban areas in India by 2051 as against the current 46 crore people. Therefore, this trend setting pattern is sure to be salubrious for the real estate industry along with government interventions & new schemes rolling in urban house spacing.
Factors driving the growth of the real estate industry in India include low interest rates, favourable government policies, revised circle rates in Delhi, more ready-to-live projects etc. The report also highlights the fact that more than 58 per cent people consider property as a mode of safe investment, with a notion that the prospects for real estate are likely to get an upswing once the pandemic recedes.