The Indian real estate market is one of the pillars of the nation’s economy. After agriculture, it is the real estate that generates maximum employment opportunities for its citizens. In fact, some of the biggies of the Indian economy are well-known from this industry.
With the outbreak of Covid-19, the market did see a negative impact on the real estate market. Amid the pandemic across the globe, the market did witness a huge loss. This gave way to other industries mark their territories in their respective industries. The Indian real estate saw an unexpected low growth between the months of October and December 2020. But interestingly, there happened to be a slight growth by the start of the year 2021.
So, is it really wise to invest in the real estate market in 2021?
This probably is a question ticking your mind because of the uncertainties being experienced by people at present due to the pandemic. Among the several major cities in India, a few including Ahmedabad and Hyderabad saw a fortunate 5% annual growth. But the factors, as studies suggest, may have been due to prices of properties already being on the lower side.
According to the Knight Frank India, “71,963 units were sold during Q1 2021, 44 per cent more than in Q1 2020. This healthy growth in sales also encouraged developers to launch new projects which are reflected in the 76,006 units launched during the quarter, substantial growth of 38 per cent .” It further stated, “Sales of residential properties across eight major cities grew 44 per cent in the January-March period this year to nearly 72,000 units as demand recovered.” This promises the year 2021 with great potential for real estate investment in India for both commercial and residential properties.
What May Change in Real Estate Investment in 2021?
Covid-19 was a huge blow among people in the year 2020. With people social distancing, staying indoors and adapting the Work From Home culture, the spike in cases started to come in control. This gave hope to most of the citizens for the year 2021. In fact, the controlled cases also slowly started to improve the fallen economic condition of the country. But, the second wave of Covid-19 in 2021 has hit us no lesser than a tsunami. The increase in cases has again forced the country to close down, resulting in several markets see a huge drop in profits. This may lead to the commercial real estate market not gain maximum profits and instead, hit a low. But, that may not be the case with residential property investments.
Investment in properties may continue, but it will be crucial for developers and real estate experts to understand consumer behaviour from now onwards. The high importance of living in a hygienic and facilitated residential society will go up. People will want to invest in residential societies that are and will put in their 110 per cent effort to create a safe environment for their residents. Additionally, with Work From Home becoming a common norm for most parts of the country, investors may look for spaces with dedicated office spaces or maybe a residence amidst commercial hubs.
Other factors post-Covid-19 pandemic that can influence the process of investing in Indian real estate include:
- Medical institutions: If Covid-19 has taught one lesson to people, it is the importance of receiving immediate medical assistance in case of certain illness. Hence, the new investors, be it for residential or commercial properties, investors may demand for medical institutions to be in their vicinity. Those to reside with their family members will not wish to take any chances of travelling for hours, bearing the traffic to receive any medical support in the future.
- On-premise facilities: A maximum number of world-class residential properties do offer dozens of facilities to their residents. This can include 24×7 security and electricity to exceptional in-built amenities in the homes. What more would be required, you ask? While luxury amenities will always be in demand for comfortable living, there may also increase the demand for on-site office spaces, 24×7 medical support and mandatory transportation facilities in case of an emergency.
- Quarantine Support: The invention of Covid-19 vaccinations has given a huge relief to citizens. But, how sure can we be that there won’t be any such unfortunate disease to hit humankind again? Hence, people will want to remain prepared and not take any risks. With medical facilities falling short at the time of need, some investors may be on the lookout for properties with complete medical facilities, including quarantine support. Several properties have started the addition of quarantine rooms in case of emergencies for its residents such as Protech Prime and it will not be a surprise to see a few more in the coming years in many residential societies.
Conclusion
The years 2020 and 2021 have been a rollercoaster for everyone. People are fighting and lending their helping hand to eliminate the Covid-19 outbreak together. There is an ongoing financial crisis with many due to unemployment and ups and downs in building a strong immunity to fight the virus. However, improved buyer sentiment due to growing or at least zero decline in profits in certain markets has been giving hope. Housing demands have remained strong and people are setting off to invest in properties for a better tomorrow. With cautious steps and study of the market daily, real estate investment can be on the lookout for positive opportunities in the Indian real estate market of 2021.