HOW WILL YOU SUMMARIZE THE YEAR 2021 FOR INDIAN REAL ESTATE?
Despite the severe setback by the second wave of Covid, the year 2021 was a remarkably transformative and growth-oriented year. The residential realty rode high on the conducive market conditions of strong end-user demand amidst continuously low interest rates and attractive home prices. The industry statistics of the first three quarters of 2021 point to a healthy demand and supply matrix, with record sales and new launches registering 47% and 38% growth respectively, compared to Q3, 2020. Almost 70-75% of total home sales were contributed by the affordable and mid-priced segment.
WHAT HAVE BEEN YOUR LEARNINGS FROM THIS YEAR?
The lessons learnt in 2021 with respect to resilience and adaptability will stand us in good stead. The growing confidence of home buyers in the under construction property of reputed, well capitalized and credible developers has been keeping up sales and recovery momentum. This trend will continue, aided by new launches providing green and healthy lifestyle as per buyer’s post- Covid preferences including plotted developments in group housing with amenities. Ready homes will continue to aid recovery for the obvious advantage of no development risk and zero GST.
WHAT IS THE OUTLOOK FOR THE TIMES TO COME?
Though fresh Covid challenge has created concern again, yet the bounce back by the residential realty in 2021 may well go into the New Year. With supply keeping pace with demand, there will be sustained recovery and growth, notwithstanding anticipated increase in home loan rates.
GST rationalization on raw materials, extension of tax benefits and funding to developers and buyers of affordable housing, continuation of PMAY interest subsidy beyond March 31, 2022 and provision of single window clearance can provide the much needed boost to residential real estate growth in the times to come.
2021 WAS A YEAR OF RESILIENCE AND RECOVERY FOR THE REAL ESTATE. THE COVID HIT RESIDENTIAL REALTY SHOWED A PHENOMENAL COMEBACK POST Q2, 2021, LARGELY DRIVEN BY AFFORDABLE AND MID-SEGMENT HOUSING.