Over the years real estate in India has seen rapid progress. The government has played its part by forming policies that have made it easy and hassle-free to carry real estate business in the country. The year 2020 also started on a positive note but the global pandemic and the subsequent lockdown proved to be a setback.
However, now that the country has entered the unlock phase, things have turned for the better. Colliers India has highlighted the fact that the commercial space absorption jumped to 58% for the quarter ending on September 30th. This is a clear sign of growing consumer confidence which is sure to boost the demand for real estate in days to come.
Moreover, though India is still under the grip of COVID-19 cases the coming down of the positivity rate inspires confidence. Many Indian corporate have resumed work whereas those across the world have adopted a wait and watch approach.
Securities Exchange Board of India has also declassified the status of a sponsor for REIT and InvIT in June which is bound to restore investor’s confidence in the realty sector which was severely affected by the COVID-19 pandemic and subsequent lockdown.
It should not be forgotten that real estate has conventionally been considered a safe investment and continues to be the investor’s favourite. A stable political environment, rapid urbanization as well as expectation of a stable economy in 2021 is likely to accelerate the investment in real estate which undoubtedly augur well for the sector. It should also be kept in mind that the COVID-19 pandemic has speeded up digitization in real estate that boosts efficiency and enhance the customer experience.
It is also expected that the investment in commercial and retail spaces would undergo a tectonic shift. Savills India has predicted a growth of 42% in the leasing activity by co-working spaces in 2021. As more and more companies wake up to the idea of flexible working, one can expect to witness robust demand for co-working spaces.
It is the combination of conducive policy, re-opening of workplaces, restored consumer confidence, and increasing interest from international investors that augur well for the real estate sector making it fabulously placed to shine in the year 2021.
