Big hopes for the real estate sector in the year 2022, from the minimum interest rates to positive policies gave boost to the sector: Rajan Bandelkar, President, NAREDCO India. From halted construction activities, mass migration of migrant workers, rise in cement, steel and other building material prices to negligible homebuyer, the impact of coronavirus on the Indian Real Estate was stifling. However, after a series of lockdowns and restrictions, the country started to get back on its feet and so did the real estate sector. The pandemic forced the real estate sector to employ digital business strategies, which led to a rapid transformation. With the gradual opening up of the economy, across construction sites, safety precautions were taken, and protocols were followed compulsorily. The opening up of vaccination for 18-year-olds and above has impacted the construction site workers in a positive way. The vaccination process boosted the confidence of the entire sector. Also, it helped increase the safety level at construction sites. So, the year 2021 was a year of recovery, and the confidence was seconded by the vaccination drive rolled out by the Union Government. The declining number of cases and resurgent homebuyers’ interest paved the way for a sustainable recovery.
What further proved to be a respite for the sector was, an all-time low interest rates and stamp duty reduced significantly by the Maharashtra Govt and followed by many other states. It helped boost the housing demand. Moreover, the pandemic also triggered a change in consumer behaviour and that is one of the key factors enabling this sector to bounce back. The homebuyers are looking out for projects that are spacious, deploy sustainable materials and are giving preference to self-sustaining societies. They are expecting a better experience and long-term connection with their house. Also, as people are returning to offices and organisations adapting to hybrid working models, the commercial real-estate sub-sector is too poised for growth. Furthermore, approvals, and the completion timeline extensions provided by State RERA authorities also provided additional time for project completion to the real estate developers. The fact is that Indian real estate has never been new to challenges and like previous times, it has once again emerged stronger and showing signs of steady recovery.
