Several real estate experts have previously shared their views and insights upon their expectations from the year 2021 for the industry. They included the Head of Sales at BPTP Limited, Amit Raj Jain, Managing Director & CEO at Max Ventures & Industries Limited (MaxVIL), Sahil Vachani and also the Managing Director at Kalpataru Limited, Parag Munot. The COO and Co-Founder at Square Yards, Kanika Gupta Shori, stated that the year 2020 came filled with several surprises for Indian real estate with regard to housing demand.
She opined that the Indian realty sector emerged out of the countrywide lockdown with a drop of more than 80% in housing sales for the first and second quarters of the year in comparison to the same period in the last financial year. Developers off-loaded their surplus inventory with several corrections in pricing along with offering enticing plans for pre-payment and other offers which boosted a spectacular sales period in the third quarter (Q3) in combination with historically low rates of interest on home loans, cuts on stamp duty and several pro-active initiatives taken by the Government. Affordable housing was the major growth driver in Q3 and most Tier-1 housing markets achieved close to 90% of sales volumes in the pre-COVID phase.
Shori also anticipates healthier demand for 2021 with buyers expected to keep perceiving realty as the safest option for investment. Mid-range housing priced between Rs. 80 lakh and Rs. 1.5 crore in Mumbai will benefit along with housing units priced between Rs. 40-80 lakh in other major Indian cities. People will look to buy properties which are spacious and suitably planned in these price brackets likewise. Lower prices of homes will attract more buyers along with low rates of interest and this will greatly benefit the affordable housing segment likewise. However, Shori feels that the realty sector has to scale up supply levels with strategic offloading of surplus housing inventory and by launching several new projects. The upcoming vaccine and expected positive sentiments in the economy by almost 6.5% will help in the maintenance of a positive outlook overall amongst home buyers. The Tier-II and Tier-III cities may see higher residential real estate development while liquidity problems will steadily vanish with higher housing demand including the rental category. The extension of lower rates of interest along with waivers on stamp duty and construction premiums in tandem with the continuation of RBI instrument employment will usher in a new residential growth phase.
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