The year 2020 has led to unforeseen changes in various sectors of the economy, and real estate has not been an exception. It remained exposed to multiple challenges, which altered its demand-supply dynamics. However, the sentiment is gradually improving, and realtors are looking forward to 2021 with high hopes
With the Government implementing the lockdown post the COVID-19 outbreak, the reverse migration of labour, non-availability of funds, and the disrupted supply chain adversely affected the construction work and housing sales. However, with a technological revolution in the sector, and a host of measures announced by the Government the sentiment is slowly augmenting, and buyers are coming back into the market which is a good sign for Indian housing segment.
When it comes to office spaces, investors have always been there; however, closures remained deferred due to the impact of COVID-19. Nevertheless, the Jul-Sep 2020 quarter saw investments happening in popular markets. A significant trend has been the increased demand for pre-leased offices given the fixed and attractive returns in the category. The hygiene and safety steps taken in office premises by operators has also fuelled demand, and the trend is likely to continue in 2021.
Thanks to the demand surge in the e-commerce sector, logistics and warehousing segments were the least affected during these challenging times. This demand spree is expected to remain unchanged in 2021 too, spearheaded by FMCG, 3PL, retail and e-commerce sectors.
The year 2020 remained the transformative year for real estate leading to new norms. Trends like resizing, renegotiation, de-densification and consolidation of office spaces dominated the market, and these trends may continue in 2021 as well. However, the first quarter of 2021 will present a clear picture of office space utilisation and restructuring strategies adopted by big consumers, IT sectors, MNCs and corporates, which might lead to a higher vacancy ratio in Grade A office spaces and a moderate price correction at the same time. Besides, there might also be an improvement in consumption and demand for co-working spaces.
Health, safety and technology will again grab pole position in 2021. Also, social distancing at offices and construction sites will be imperative. Offsite construction will be more preferred by developers considering its cost benefits and the labour shortage in the current times. With more becoming aware of sustainable development, the demand for environment-friendly and energy-efficient buildings would increase. To boost efficiency in the sector, technology will play a vital role and investments in drone technology, Artificial Intelligence (AI), automated construction tools, and 3D printed materials will increase, leading to strategic success in the construction industry.
In the residential segment, one can expect a rise in prices and demand for ready-to-move and quality projects across all the segments and sizes in 2021. The foci of new-age homebuyers in the coming year will mainly be projects comprising hygiene, sanitation and technology-enabled facilities. With many professionals working from home nowadays, the developer community has to equip residential spaces with amenities that facilitate hassle-free work from home. Overall, 2021 may see increased traction in the realty sector and the continued transparency and transformation may substantially benefit the stakeholders
https://www.99acres.com/articles/real-estate-demand-set-to-improve-in-2021.html
