Real Estate Revival
The infrastructure and real estate sectors are experiencing uncertainty due to the pandemic lockdown that impacted businesses across all sectors. However, on the upside, the pandemic has reinforced the significance of real estate as the most reliable and stable investment asset; as the sector has maintained its lustre, despite the economic setback.
The unlock phases, along with a series of government measures, have led to the revival of real estate. The slashing of the repo rate and reverse repo rate, extending Emergency Credit Line Guarantee Scheme (ECLGS) to the sector, and increasing the allocation to Pradhan Mantri Awaas Yojana (PMAY) will boost buyer sentiment and accelerate the revival pace.
With the interest rate being at an all-time low, there was traction in residential real estate. We expect this momentum to sustain in 2021 on the back of prospects for economic stability and a conducive policy landscape. Riding on the spate of infrastructural developments, Tier 2 and 3 cities will emerge as the 'destination next' for real estate. The government also needs to continue providing a thrust to affordable housing to fulfil the mission of 'Housing for All.' Various stakeholders such as the government, industry bodies and developers need to come together and think out-of-the-box to lay a roadmap for long-term growth.
Everyone is doing their best to get the economy moving with the new normal. Adhering to the utmost level of precautions is the only solution till the vaccine’s use becomes widespread. We look forward to participating in expos such as the bauma CONEXPO, which provides a platform for stakeholders of real estate to converge and meet as well as showcase their expertise. However, rescheduling bauma CONEXPO to April 2021 is a prudent move, considering the transmission risk in crowded places. In fact, hygiene and safety of people should be the foremost priority in these unprecedented times.
