The real estate sector in India is making a robust recovery from stifling Covid-19 effects, making it an attractive proposition for NRIs, says DEEPAK KAPOOR
The real estate sector has demonstrated a swift and steady recovery from the Covid-19 aftermath. As the inoculation programme unfolded in full swing, the cases saw a significant drop. The strict implementation of Covid-19 safety norms, low interest rates, pent-up demand for homes and discounts by developers were also some crucial reasons for the real estate economy to return to a state of normalcy. Though, whether it has made a complete recovery is a question that will evoke differing viewpoints, nevertheless it is definitely on the right track.
Many real estate segments, including affordable, premium and luxury, are currently doing well. They have recorded pre-Covid sales that have brought relief to the markets and real estate developers. In some markets, volumes are back to pre-Covid level, higher than 2019, with unsold inventory also coming down considerably. All this, coupled with rising prices of commodities, including those used in construction, may together drive up real estate prices in India in the near future.
The state and institutional support have tremendously helped the real estate industry grow and remain resilient in tough times and become stronger. Announcements of new projects have also been made in metro cities and peripheral regions, reflecting the expanding presence of the real estate sector in all corners of India. It also shows that Covid-19 has not affected the industry majorly as the supply and demand chain has not tumbled and only grown larger post-pandemic. The completion of many towering infrastructural constructions has also livened up the real estate sector and contributed to rising sales. Buyers have also learned the value of owning real estate and why investing in it is a much better
deal than any other white elephant investment. Property offers long-term benefits and is an excellent source of income in times of need. All these factors have together hastened the recovery process of the real estate sector and helped it emerge as one of the most significant contributors to India’s GDP. The favourable changes in customer behaviour and the coming up of new projects are signs of good times ahead for the real estate sector.
Luxury real estate has documented a surge in both supply and demand which has outdone the pre-Covid deliveries. A growing population of High Net Worth Individuals (HNIs) in metro cities with income stability and economic prosperity are the biggest takers of luxury properties. The reported rise in fascination for high-quality living, grandeur, high-end security features and home decor has also been witnessed among young buyers.
All this has given a fillip to the growth of luxury housing. Resultantly, there is a spurt in demand for luxury condominiums and villas. It is one of the top trends that is driving the real estate market in India. Luxury properties are one of the most bankable real estate juggernauts that have refused to slow down during and after the pandemic and have held firm.
Overseas Indians have often been found praising property development in India, matching and superseding global standards. Luxury real estate nowadays has encapsulated many new and high-end features that are also encouraging Indian expatriates to buy properties in India. It has attracted significant foreign attention, gaining admiration from NRIs and Indian communities overseas.
The writer is promoter-director of Gulshan Homz, a unit of the GC Group, and formerly president of CREDAI, western UP