Due to the first and second waves of Covid 19, we have seen huge economic damage, especially in April and May 2021. The residential real estate was going through an enormous loss, and gradually, signs of betterment were shown by the end of June. The price range all over India has risen by 1.7% approximately.
The growth of real estate companies is dependent on the corporate ambience and continuous demand for space to set up offices. It is seen both in the urban and rural areas of India.
In India, there was a national lockdown announced in March 2020. Every company has announced work from home. Hence, it increased the demand of 3bhk amongst the buyers. The main possible reason was people were looking for extra room to facilitate their office work.
The Reasons Behind The Bounce Back Of Indian Real Estate
Few reports state that in regards to quarter 1 of 2020, the sales of residential properties increased in quarter 1 of 2021. There was a hike of 90% in the volumes, whereas, in 2020, it was around 84%. A noticeable change of 5% increase is noticed in the real estate industry in Delhi.
According to the renowned economist, a report has been prepared. In that report clearly states the sustainable growth of sales is like a sign of demand for housing properties. Therefore, the buyers are gaining back their confidence in investing in real estate.
In this context, it is essential to know that the real estate company owners are taking the opportunity and providing low-income home loan rates, brilliant payment plans, and even reduction in stamp duty.
Another reason is the closure of lockdown and the introduction of a vaccine. Therefore, more buyers are showing interest in buying the properties. Moreover, the space stick of India is also expanding by 10-15% from the present 36 million sq ft in the next three years.
The presentation of the micro markets all around in Delhi NCR, Noida, Gurgaon have promoted a double-digit increment in expanding property appreciation. The rates are 11% to 13% growth.
2021 is the year where people have adopted the new trend of working from home. The remote working system has increased the demand for houses at affordable prices. We have seen the demand for house properties ranging between 40-50 lakhs in major 2-3 cities.
The Government’s Role
The Indian government, along with the different State Governments, is taking many initiatives for developing the real estate company. Primarily the smart city concept has encouraged people a lot for investing in houses or apartments. The government is indulging in developing almost 100 smart cities. Hence, there will be more opportunities and growth for this sector.
Conclusion
The Securities and Exchange Board Of India have approved the platform for Real estate investment trust (REIT). This will again call for more investors to invest in the real estate Indian market. In the coming years, the opportunity will create a profit of 124-125 trillion in the Indian market.
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