What’s In Store For Indian Real Estate In 2021

When the year started, the real estate industry in India was hopeful of a turnaround. In line with the expectations, the industry registered promising growth in the initial months. However, as the Black Swan event spread like wildfire, markets started staggering, with a drastic slowdown in sales. The industry showed some limited manoeuvring by embracing the digital medium. The repo rate cuts and liquidity infusion by the government were also helpful as it reduced home loan rates. The developer fraternity also introduced attractive payment plans to arrest any steep decline in sentiments. Once the lockdown was suspended, markets started reviving, despite a slowdown in business activities weighing on the overall economy. Finally, in the last quarter, the 2019 growth numbers were restored, and the industry reached near normalcy. The euphoria that started with the festive season has led up to year-end, clocking a 75-85% quarterly surge in sales

Talking about commercial real estate, sentiments have been more dismal as most of the companies deferred or cancelled their leasing decisions in Q2. However, markets started to revive in Q3, with a rise in leasing activities driven by BFSI, FMCG, e-commerce retail, wellness and healthcare, etc. Overall, it was a tough year for real estate in India, as most of the other industries. However, the year saw a growing thrust towards digitization and technology adoption, chronicling a new era in the industry. There has been an incremental rise in investment activities in the market, as Real Estate offers safe, sound, and tangible investment options. Urban Indians are increasingly realizing the importance of owning a home, which is a healthy sign for the long-term future of the industry

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