Analyzing post Covid situation and opportunities for real-estate

The real estate industry isn't new to the challenges of recent years, but in the last two years things have become even more difficult for the sector.
Fiscal year 2020-2021 was the Covid-19 watershed year, which led to a market crisis and recession. A series of closures and restrictions caused a sharp decline in real estate demand and construction activity, stagnant real estate transactions and price volatility. The residential and commercial real estate markets were affected.
As the concept of homework and telework became the norm, the footprint of commercial real estate began to shrink. But everything isn't dark here, as the market has taken several steps towards revitalization since last year. The real estate industry is slowly beginning to recover due to the ongoing coronavirus vaccination campaign nationwide.

Government initiative

The Government of India has taken the necessary steps to stabilize the weakened and volatile real estate market. GoI has proposed a positive annual budget for 2021-22 to enable growth and has already taken steps to encourage investment in India's real estate sector. In addition to central government efforts, each state government also plays an important role in bringing the declining sector back to the fast track after Covid-19.
Last year, the Maharashtra government decided to reduce the stamp duty rate on real estate registration / real estate transactions. Other states, such as Karnataka, followed the same pattern, but the center lowered the GST rate. This has brought customers back to the market. The Reserve Bank of India also announced that it will offer several concession schemes to support the sector and reduce the tax burden on buyers. The RBI continues to maintain a 4% repurchase rate, so homebuyers can now rent a home at an annual interest rate of only 6.65%. Taxpayers can also claim a deduction for interest paid on their mortgage. In addition, the government has allocated a stress fund of Rs 25 billion for unfinished projects. All of this leads to a situation that is mutually beneficial to all stakeholders in the industry.
The positive impact of the government's aggressive vaccination program can also be experienced in the national real estate market. It gave people the confidence to return to the city. As a result of this increase in urban population, there is a great demand in the residential real estate market, which is a sign of good performance a year ahead.

NRI investment

This may seem like a difficult time for sellers, but it's a great opportunity for homebuyers. Over the last two years, people have learned how important it is to own property. Not only real estate, but also visible enthusiasm and a significant increase in private investment. The relaxation of investment rules has increased investor interest and made the residential real estate market very beneficial to NRI. HNI and retail investors see the struggling real estate market as an investment opportunity and are investing large amounts of capital in this asset class. The depreciation of the rupee value against the US dollar and lower deposit rates have increased cross-border investment in this sector. Promising renaissance

Given its panoramic view, India's real estate sector is a very mature industry. You've dealt with many interruptions well in the past, but changing isn't new. The process seems to be slow again due to the pandemic, but it is definitely recovering. And in anticipation of the third wave, we can expect some more hurdles in the industry. However, the government's steps to promote a sustainable revival and promote further growth in the industry are expected to produce positive results this year. But in the future, the future of the industry looks promising.

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