We have stepped into the third quarter of the financial year and as far as real estate is considered, it’s been a lifeline with great results in the resurrection mode. Everybody knows how drastically we were, in fact, the global economy was affected by the Covid-19 pandemic. The cascading effect of the pandemic is still evident in many sectors, but in this narrative, we are checking on how real estate managed to beat the second wave of Covid-19.
“As per statistics of Knight Frank, new launches shot up by 71 percent (year on year) (103,238 launches in H1 2021 versus 60,489 launches in H1 2020), and sales volume spiked by 67 percent (99,416 home sales in H1 2021 versus 59,538 in H1 2020). How did the realty sector manage to pull off this heist breaking all the barriers raised by the pandemic? Let’s take a closer look at the events that shaped the betterment of the real estate sector.
A lot of policy reforms were put in place for the end-users and investors to leverage the benefits. Major cuts were issued in the bank repo rates, stamp duty charges, and ready reckoner rates which has pushed the sales ahead. The developers pushed the momentum further by offering highly lucrative equations for the investors to harness the surprise growth so far in 2021. Indian real estate, post-pandemic, has been a happy marriage of stamp duty largesse, circle-rate cuts, realistic repo rates from the Reserve Bank of India, and calculated business development plans adopted by builders.
Backed by the first wave experience, developers have reinvented their strategies understanding the situation and demand of the evolving audience. The low interest rates were a key factor in reinfusing liquidity in the sector. They have tapped the ongoing buzz of Work From Home culture which gave considerable importance to space management in architecture and construction for bringing the office to home. The better understanding from the first wave has empowered the real estate stakeholders to possess better preparedness in 2021.
Long Way Ahead
Even though we have recorded commendable growth so far in 2021, the real estate sector is still trailing behind when compared with the figures in 2019. The 67 percent increase in 2021 is clearly indicating the increase in consumption, but it’s still picking up its momentum, indicating that the investors and end-users have a lot more time left to take advantage of the changing dynamics of real estate. Invest in real estate now and diversify your portfolio with a better growing asset class.