2020 packed with real estate sector surprises as per Kanika Gupta Shori

Multiple experts from the real estate industry have shared their views regarding 2021 and how it will augur for Indian real estate. Experts included Kanika Gupta Shori, the Co-Founder and COO at Square Yards, BPTP Ltd Head of Sales, Amit Raj Jain, MD at Kalpataru Ltd, Parag Munot and Max Ventures & Industries Ltd (MaxVIL) CEO & MD, Sahil Vachani. Shori stated that 2020 was surprise-filled for the Indian real estate sector by way of overall housing demand. She stated that real estate initially came out of the lockdown induced by COVID-19 with a drop of more than 80% in home sales volumes for Q1 and Q2 as compared to the same period in the previous financial year.

Real estate developers started offloading extra inventory with multiple pricing corrections in tandem with providing attractive pre-payment plans and offers which led to a surprisingly spectacular period for real estate sales in Q3. This was aided by historically reduced interest rates along with stamp duty cuts and multiple positive measures taken by the Government. Affordable housing benefited the most in this period with most Tier-1 housing markets getting back to almost 90% of their pre-COVID levels.

Shori feels that demand should rise in 2021 with most buyers expected to continue seeing real estate as a safe investment option. Mid-range properties priced between Rs. 80 lakh and Rs. 1.5 crore will see more traction in Mumbai amongst buyers while the same will hold true for those priced between Rs. 40 lakh and Rs. 80 lakh in other Indian cities. Lower home prices will draw more buyers who will look for more spacious and properly planned homes likewise. Affordable housing will greatly benefit provided there is ample supply increased by the real estate sector in the bargain. Developers have to offload their inventory strategically along with launching multiple new projects in turn. The positive economic sentiments and upcoming vaccine launch may revive buyer sentiments and outlook along with steady economic growth of 6.5%.

Tier-II and Tier-III cities are expected to witness higher growth in residential realty while liquidity issues will go away steadily with higher demand for housing including home rentals. The extension of lower interest rates and stamp duty waivers and construction premiums will go a long way in boosting future growth along with the continuation of RBI instruments and their employment.