Among the most globally recognised sectors, real estate is one of them. Residential, retail, hospitality, and commercial make up this industry. The growth of this sector is well supported by the use of office space and urban and semi-urban accommodations, which is also booming in the business environment.
After the agriculture sector, the real estate sector accounts for the second-highest generation of employment in India. The real estate market in India, which was worth US$ 120 billion in 2017, is expected to grow to US$ 1 trillion by 2030 and contribute about 13% to GDP by 2025. India’s infrastructure growth continues to be supported by the growth of retail, hospitality, and commercial real estate.
But after the upheaval caused by the Coronavirus pandemic, the Indian economy began to show signs of decay in early 2020. Despite the corrective measures that were implemented to address the adverse effects of COVID-19, the second wave of the pandemic has resulted in further strains on India’s economy, thus causing rating agencies and global think tanks to cut their growth estimates for 2021. It is fair to say that the COVID-19 virus outbreak has had a seismic impact on India’s economy as a whole and its real estate industry in particular.
Affordable housing is the way forward for the economy to recover. With developers offering reasonable prices and amenities at affordable prices, affordable housing has emerged as the most popular segment. Additionally to affordability, builders will need to offer facilities for a healthy lifestyle during the post-coronavirus period, as this is an essential criterion for choosing a project.
India’s economic development, job creation, and opportunity story will be dictated by increased government and business investment in developing tier-2 and tier-3 cities as economic centers of activity as well as increased consumer spending in the coming decades.
In light of the low-interest rates and reductions in stamp duties that are being credited for the recent revival so far, the bank community argues that rates should remain the same for the real estate industry to fully revive.
India’s economy is likely to grow stronger toward the latter half of 2021 as the pandemic is contained locally and the vaccination program has been established. Nevertheless, the global COVID-19 situation remains volatile, and the recovery process is likely to be slow and uneven.