In 2021 against the luxury, second Homes, Retail, Offices, shared accommodation all picked up sales. Buyers returned to the Market with home sales. The Indian real estate market, which was stagnant in 2020 because of the first wave of the pandemic and lockdowns, has shown indomitable resilience and crafted its way forward in 2021. Market analysts have pointed out that the Indian residential real estate sector’s comeback after the second wave in Q2 2021. Between January 2021 and September 2021, around 1.63 lakh units of new residential supply were added across the top seven Indian cities, 27 per cent higher than 2020 full year supply, and 1.45 lakh units were sold, which is 5 percent higher than in the whole of 2020.
Anarock report states that in 2020, 1.28 lakh units of new residential supply were added across the top seven India cities, while sales were clocked at 1.38 lakh units. From the previous peak of 2014, supply was down by 77 percent and sales were down by 60 per cent. This large-scale decline indicated that the residential market had bottomed out in 2020 and was likely to enter a long-term upcycle from 2021 onwards.
‘A year that’s going by, a year of anxiety, destruction, and reconstruction all in one year shaking confidence and also the beginning of a new century, says Mr. Gautam Thacker, President NAREDCO – progressive Neral-Karjat Unit.
He further exclaims that the year started with people trying to peep out from the shadow of Covid destruction and its fear while a lot of lives were lost Economy was eroded and the market looked volatile. Real estate was reeling under tremendous pressure while the Hospitality industry was written off by many pundits. Most were worried about how things would shape in the future and the gestation period it would take to revive the economies to their peak. The real-estate industry in the UK and USA started showing a great amount of enthusiasm followed by some currents in India thanks to some states taking proactive measures in terms of Tax confessions to the industry. While people started to gain confidence when the second wave hit it badly, the resilient industry rose to the occasion and fought back to face another problem of labor shortage and increase in input cost due to severely affected supply chain disruption. Seems the problem doesn’t want to let go of easily. With the threat of omicron and the third wave looming over industry is watchful.
The key take away for the industry according to Mr. Gautam Thacker, President NAREDCO – progressive Neral-Karjat Unit.were:
1. The good take-off of ready stock thereby unlocking the cash flows,
2. It saw traction across segments
3. Against the expectation the luxury, second Homes, Retail, Offices, shared accommodation all picked up sales. Buyers returned to the Market with home sales breaking all the records of the decade.
4. Corona set new buying trends and the new era will be of larger homes where people will not mind moving further down to emerging suburbs, preferring open spaces and a clean environment.
5. Most importantly the millennial that always preferred renting a home above buying changed the preference for buying.
The current trends and expectations are that 2022 will bring cheer to the industry and the decade belongs to it. Even the NITI Aayog report predicted Real-estate to touch the $ 1 trillion market size in the Indian economy. So let’s sit tight for the last few days of 2021 and prepare ourselves for a robust decade starting 2022.