Dr Niranjan Hiranandani, National President, NAREDCO and Managing Director, Hiranandani Group said that, “The snowball effect of fiscal impetus has resulted in a positive forecast of India’s GDP growth. Indian real estate remains a predominant driver for employment after agriculture and has a multiplier effect on 269 allied industries. The pent up demand due to the multiplier effect of policy reforms will fuel sustainable growth in 2021. The government spends on public infrastructure and has to scale up a manifold that will attract more investments and lead to further job creation-a need of an hour. Demand for owned houses has gained traction post pandemic life and adaptation of digitization, product redesigning and upskilling of human capital will be focal points for the business continuity plans. Indian real estate assets hold huge investment potential with an influx of highest FDI and FPI seen during FY 20-21, as the construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. The commercial real estate growth trajectory will be resuming back once the GDP growth is on a positive scale. The supply chain disruption has opened floodgates for the logistics sector to fix the gaps and flourish in light of becoming a global manufacturing hub. Other sunrise sectors like Industrial Parks and Data Centres will see pent up demand in the year ahead.”
Murali Malayappan, Chairman and Managing Director, Shriram Properties Ltd.
The most preferred property segments in 2020 were mid-income, affordable housing and plotted land development, and we see a considerable growth potential for these segments in 2021 as well. Covid 19 has made the prospects brighter for mid-income and affordable housing segments. The end-users’ current mindset is to own a house /flat with all safety measures and flexible design options to meet pandemic limitations and constraints.
Additionally, real estate is considered the best asset class to invest in the present economic scenario, with the falling interest rate of fixed deposits and stock market uncertainties. Therefore, there will be a further increase in housing demand and well-developed residential plots from the reputed builders in 2021. Commercial and office space will also witness a moderate rise in demand from the second quarter of 2021.
In order to achieve the mission of Housing For All, there needs to be a more significant thrust for this industry from the Government, including ease of doing this business, affordable capital availability and relevant tax cuts, enabling India to reach the $5 Trillion economy goal soon. We feel that this already rising demand in the housing sector will only further emphasise that the year 2021 belongs to the Real Estate sector.