The ongoing social and economic situations highly influence the real estate sector's demand and supply. The beginning few months of the Unlock witnessed interest in property investment rising in Tier II-III cities. Buyers in Punjab region were getting inclined towards well-planned projects and better infrastructure. After initial hiccups, 2020 panned out well for the real estate sector as it set the tone for 2021.
Talking of 2020, Nagaraju Routhu, CEO, Hero Realty, says, "The year has been a great learning period when it comes to reforming our business strategies and revisiting our contingency plans to prepare ourselves better for tackling setbacks caused due to the lockdown. Real estate witnessed the new dawn with digital integration in terms of virtual tours, online sales etc. Gradual unlocking of states and industries helped the sector go back to normalcy. The festive months were bright in terms of project deliveries and possessions. Tier-II and Tier III cities as compared to metros have seen robust demand in the residential segment due to reduced home loan rates and buyers' inclination towards integrated living."
2020 has been a year of unique trends in the real estate sector, the reverse migration among the working professionals from metros and NRIs lead to increase in demand of property for Tier II and tier III cities. "When it comes to analysing the northern region, Tricity and its peripheries witnessed an upsurge laying the foundation for a market that is going to grow exponentially from here. The year 2021 promises favourable returns, as the lifestyle of people is going to be changing drastically after overcoming the effects of the pandemic. Residential spaces that promise holistic living, unique amenities, the ideal location would become the epitome of an ideal home," says Raman Gupta, Director- Branding & Construction, GBP Group.
Delivery of projects and catering to the changed preferences of the buyers will be the focus of developers in the coming year. Prateek Mittal, Executive Director, Sushma Group, says, "Since April 1, 2020, SUSHMA Group has already given possession of 302 units in four of its projects, and plan on giving possession of another 812 units by the end of FY 20-21. The demand for Integrated townships is on the rise due to their amenities provided within the premises and controlled living conditions. The upcoming year will witness the development of more integrated township projects in this particular market with an expansive green cover and close attention paid to hygiene and cleanliness. Experienced developers in the industry, have revised their upcoming projects as per changing homebuyer's lifestyle choices."
Mohit Goel, CEO, Omaxe Ltd., says, "The positives that have emerged from the COVID-19 crisis will form the cornerstone of the coming decades of growth in the real estate sector and overall Indian economy. The increased investment in infrastructure development by governments and businesses in developing tier 2/3 cities as centres of economic activity along with increased consumer spending and activity will write the story of growth, employment and opportunities in the coming decades in India."
More millennial are likely to go real estate assets in 2021 as they understand the importance of real estate investment. Vimal Monga, VP- sales and leasing (commercial), TDI Infratech Ltd., says, "The coming year will see an increasing demand owing to the people's likeness for gated communities post-COVID-19 due to the ability of these projects to provide a complete healthy lifestyle. We will also see interest in well-planned commercial developments as the requirement of malls and office spaces will go up. The real estate sector will also witness more young investors coming in as the millennial are now getting attracted to investment in commercial properties. The demand for commercial among youngsters has picked up pace as Post-COVID-19 people are looking for a source of extra income and rental income from the commercial is a smart way to get it; young professionals see commercial properties as their pension plan."
Talking about the commercial segment in 2021, Goel adds, "As far as the office segment is concerned, it will remain affected as the rationalisation of the workspace by the corporate sector has led to a pile-up of inventory that is expected to take 2-3 years to clear. Additional supply that is being created despite subdued demand will aggravate the situation further. As far as the retail segment is concerned, those with 2-3 years delivery timeline will continue to be highly sought-after but more importantly, the trend of developing more organised retail space, mainly commercial redevelopment projects in metros, will become more prevalent in the times to come."