Almost a year after the coronavirus outbreak, the nation has started to come out of the economic slowdown. Gradually increasing real estate sales numbers and homebuyer’s enquiries point towards a brighter future.
Post pandemic, the recovery of the Indian real estate sector, being the second largest employer of the nation, will be significantly impacting the nation’s overall economy. The Government decisions and policy changes have remained inclined towards promoting the construction and real estate sector both from the demand side and the supply side.
Let us examine developments in the Indian real estate sector in 2021 against the backdrop of supportive policy measures.
Affordable housing has received a huge response, becoming a major part of the real estate market. However, there still remain differences to be filled in terms of timely implementation of the projects.
In the post-pandemic situation, the affordable housing sector has shown a positive response from the demand side, and more interest from end-users is expected in the coming months. New buyers who had put a hold on their property investment plans due to the Covid-19 induced lockdown in March are returning to the market. They have understood the importance of owning a home, and this sentiment is going to remain prevalent for quite some time. The immense response to real estate projects across India and festival offers are an indication that in the coming year the affordable housing segment is expected to grow.
Recent policy measures announced by the government for the real estate sector have helped the builders to get closer to an early revival. However, the Repo rate cuts, newly announced affordable rental housing policy, and lower home loan interest rates open new opportunities for the segment, but the need of the hour is to fill the vacuum created due to stagnation in the market. If implemented with proper planning and timeline policy measures such as single-window clearance would be a great help to the entire sector.
Affordable rental housing policy:
The recently announced affordable rental housing policy opens up new possibilities for private entities to enter into short-term and long-term partnerships with one or more industrial units or corporations to meet their employees’ housing requirements.
The policy shows the huge potential of the affordable housing sector and creates new partnership opportunities. Migrant workers engaged at the construction sites will finally have temporary but better-living conditions than before.
Integration of technology:
In the post-pandemic scenario, the use of workforce minimization technologies such as ‘Aluminum Foam Technology’ will increase. It reduces the need for the labor force, and its use will steadily increase across the real estate sector. Besides this in the digital era, virtual tours and CRM teams can manage customer relationships. A constant upgrade will maintain the real estate sector relevant and flourishing.
Safety to be the new normal:
As per the new Coronavirus prevention guidelines, adherence to all the safety measures will remain a standard practice in the near future. Strategies such as staff rotation, reskilling and upskilling programs will be on the rise for the well-being of workers and employees. Indeed the pandemic has created an opportunity to learn new things and alternative technologies, and in the times to come, it will remain a trend.