The real estate of India covers approx 8% GDP of the country, 4 years back the residential property market itself was estimated at $180 billion and is projected to touch $650 billion by 2025. In another 5 years, it will touch the figure of $1 trillion.
The size & value of Indian real estate is estimated by the fact that approximately millions of people are directly or indirectly dependent on this industry for employment.
So, with this big & important role of real estate in the economy of India, it is very expectable that strains in the realty sector will have a dropping effect on the economy, which is already struggling in the face of the 2nd wave of Covid19.
The real estate sector is both worried and under pressure at this time. While loads of unsold inventories for a long time have smashed the confidence of many builders and the jerk from lockdowns has generated a little halt on new deals. Even if, the positive thing in this situation is the fact that the total number of Covid cases has fallen in most of the cities and economic recovery has begun.
But still, the government and real estate industry itself must effort together and work on a perfect plan. According to the experts, the government and real estate industry should work together with few points - Relief, Adaption, and Flexibility for the revival of the property market and economy.
Relief
At this time all that the real estate industry need is relief and this relief come as loan reformation in under-pressure development. By reformation of loans, not only respite will be given to builders but also banks will be relieved. Government should provide direct support through rebates in stamp duty & IT returns to boost the sales in the property market. States like Maharashtra & Karnataka have already offering rebates in stamp duty and caused a rise in demand, this is an actual game-changer.
Adaption
In the long race, it is very important to the adoption of modern technology. Now real estate of India leaving its demure nature and adopting the online medium & other modern technology, thanks to the behavioral change of home buyers & investors. Now real estate sector & government should effort together for more advanced technological innovation through subsidies, concessions, and other incentives. According to real estate, expert’s modern technology should be expanded and installed – both in real estate construction sites and transactions methods. This step will facilitate higher sales, shorter construction cycles, and effective overall operational flow.
As well as, the real estate sector needs to re-evaluate its overall strategy and identify the reasons for transformations in buyers’ behaviors. Demands are expected to rise in residential property sub-categories such as independent developments, plotted development, co-living spaces, and affordable homes.
Flexibility
Now we understand that relief measures in real estate will entice prospective buyers and adaptation measures will aid in adjusting to modern technologies. Now question is - how much flexibility do we need for the existing situation? Even with the ongoing Covid19 crises, we have to keep ourselves updated and work with an approach of constant advancement.
The demand for housing is high in our country, positive socio-economic circumstances, young working professionals, a high rate of urbanization & infrastructure development, and the rise in household income will aid the real estate sector to go on an upward direction. On the other hand, for better performance of the real estate market, we would need extra efforts from Government & Real Estate bodies.
