Real Estate

Real Estate Sector – New Optimism in 2021

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<p style="text-align: justify;">As we are foray into the last month of the year 2020 which predominantly went on to become a Covid-19 year of pandemic, we explore some positive signals in the dawn of the next year 2021 which may bring back on track the growth trajectory of real estate sector in India.</p><p style="text-align: justify;">Due to lockdowns and impending slowdown in the economies of the world, the Real Estate sector has been hit hard as well. The Malls were closed down, Hotels &amp; Commercial buildings remained vacant for many months, and inventory of residential apartments bloated up and had a severe impediment on the lease and rentals as well. But as the major economies of the world are planning to bounce back into the mainstream once again with more thrust and an optimistic roadmap. India is now preparing to join into the bandwagon once again and infuse fresh energies into the real estate sector in the year 2021. The gap created due to this sudden crippled the construction sector which ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.</p><p style="text-align: justify;">Office space has been driven mostly by growth in Co-working, IT, BFSI and manufacturing sectors. Demand for Grade-A office space is expected to cross 700 million square feet by 2022, with Delhi-NCR region topping the charts in this demand. Investments from PE funds, FDIs and Institutions can boost the inflow into the real estate sector by whirlwind. Construction sector needs to revamp their operations with more safety measures for their workers and follow all the necessary guidelines as required by regulatory authorities.</p><p style="text-align: justify;">The initiatives taken by Indian government to build 100 Smart Cities is a right opportunity doe the real estate companies to channelize their synergies in accordance with the development of Tier 2 &amp; Tier 3 cities. Similarly, the development of Infrastructure sector with Railways, Ports, Airports and Highways is going to push the demand further for the development of Real Estate sector. Hopefully the government will keep on introducing various initiatives time to time in order to bolster the momentum of growth further.</p><p style="text-align: justify;">Road Map to New Optimism</p><p style="text-align: justify;">Last but not the least, the Indian developers are now gearing up with the challenges to focus on becoming professionally managed enterprises from the family-owned businesses. They are streamlining their operations in alignment with the global practices and benchmarking of processes in order to build stability mechanism and transparency into the system. With this they are hiring well qualified professionals who are adept in Architecture Design, Procurement, Project Management and Construction Management. With these synergies the outlook seems to be quite upbeat and nevertheless we all need to rejuvenate ourselves in this transition period and remain optimistic.</p>
KR Expert - Harpreet Sabarwal