Realty back on growth track

New Delhi: REALTY in the country has seen an increased preference, owing to change in consumer behaviour amid ongoing pandemic, and realtors are calling the year 2021 as a comeback period for the industry. Real estate moghuls have said that complementary factors such as stamp duty reduction, unchanged repo rate and low rate of interest have contributed to the boom in real estate, particularly in the housing segment.

Navin Makhija, Managing Director, The Wadhwa Group, told Bizz Buzz that the reduced stamp duty by the State government at the end of the year 2020 set the momentum for the real estate sector at the beginning of the year 2021. He further said that post Covid 2nd wave, once the immunisation drive kickstarted, in the country, Indian real estate market again saw a sharp turnaround on the back of a healthy demand.

On the increase in demand owing to improved consumer sentiments. Makhija said, "We immediately saw sales volumes coming back to normal due to a boost in the consumer sentiments on the back of favourable Government policies, necessity for owning a home, all time low home loan interest rates along with various schemes from developers… We anticipate the Government to announce incentives that will propel the growth of the sector such as introducing tax breaks which will increase public spending, and less transaction cost."

The realty expert also said that for the forthcoming year, developers must focus on the completion of the existing projects, as developers have witnessed relatively better sales in mid-income and affordable housing segments and which may continue to dominate in 2022 as well.

Pritam Chivukula, Secretary, Credai, MCHI, on the overall outlook of 2021 for realty, has said that the residential housing gradually picked up momentum as compared to other segments. To further ease the path of growth, Chivukula anticipates that the government may extend further relaxations and benefitting incentives that will only help better the sector in next year.

"Various supply and demand patterns assessed over the last decade have already started putting upward pressure on residential property prices. Residential sales momentum is expected to continue in 2022 as prospective homebuyers' preferences for bigger homes, better amenities and attractive pricing will keep them interested to seal the deals," he said.

Other industry giants too share similar sentiments with a positive outlook for realty industry in the coming quarters, but are also keen in the observing the rapid popularity of luxury housing segment which has taken a precedence in residential market.

"Prerequisite of comfort and solace within homes due to increased habitation between lockdowns led to an increase in demand for premium and uber-luxury developments. The presence of spacious homes, luxurious lifestyles and unique amenities in these developments prompted a gradual rise in transactions. While the second wave of the pandemic dampened the home buyer interest, the commencement of the festive season towards the year-end restored the same and ushered in a lucrative wave of sales," Shreyans J Shah, Managing Director, MJ Shah Group has said.