Real Estate in India Set To Shine In 2021


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.

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