Home buyers are anticipating a good 2021 for the real estate sector in India and so are developers. This may be due to timely measures taken by the Government along with conditions more conducive for investments. Experts feel that the residential segment has recovered faster than expectations owing to several financial schemes and waivers from the Government for supporting home buyers. With affordable housing, experts feel that incentives should also be provided for sustainable housing developments since they are mostly needed in urban areas today.
Multiple reforms through capital infusion, refinancing of several banking institutions, taxation linked benefits, policy support, subsidies and offers are needed for witnessing swifter recovery. Growth is expected to increase in the coming few months owing to a more robust market. A Business Expectation survey by the National Council for Applied Economic Research indicated growth in sentiments by 41% at the conclusion of the July-September period. This trend should continue, auguring well for the future growth of residential real estate.
COO and Co-Founder at Square Yards, Kanika Gupta Shori, has opined that in 2021, people will keep perceiving real estate as the best and safest option for investment while there be higher consolidation going in favor of the leading developers while the sector still catches up with the latest digital and technological innovations for enhancing experiences of consumers. She added that residential sales traction should boom in Karnataka and Maharashtra among other States owing to the reduction in construction premiums and stamp duty alike.
Shori also added that with lower rates of interest being extended along with waivers on stamp duty and the continuation of the RBI financial policies, mid-range homes within Rs. 8.5-15 million will find more takers amongst those looking for spacious and properly planned housing units. Property prices may correct by around 15-20% throughout markets with developers looking to clear surplus inventory, thereby enabling better options for NRIs with regard to upgrading family housing units in the country. With the vaccine expected to arrive anytime soon, there will be massive improvement in overall decision-making procedures and business sentiments according to her.
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