According to Infomerics Valuation and Rating Pvt Ltd., a SEBI-registered and RBI-accredited financial services credit rating company, after being hit hard by Covid-19 due to scarcity of labour and low budget spending, India’s real estate industry is now gathering pace and is on the course to healthy recovery. The report mentions that post-pandemic, the real estate industry has been witnessing drastic change over the past two years. While the Covid induced ‘work from home’ model reduced the demand for commercial spaces, it increased the demand for residential spaces.
The commercial segment which is relatively a more formal segment (with big players involved) has seen an influx of investment, says the report. Commercial investments augur well, given the scope of business activity in India & this can be clearly witnessed with the on-going developments in Indian business space as more companies are being formed as they touch greater heights of expansions with need in working spaces.
Among dominant markets, Bengaluru, Chennai, and the National Capital Region (NCR) recorded largest recovery in the September 2021 quarter. The Information Technology (IT) remains the largest consumer of space during the quarter, occupying 34 per cent of the space transacted.
The report said that with regard to residential spaces, the interest rates on home loans (October 2021) is likely to act as an incentive for prospective buyers. Along with that, the buying decisions now factor in adverse impact on income, ‘thriftiness’ caused by unforeseen emergencies, ‘access to large green areas’ and ‘access to good healthcare’.
Further, the report also mentions that the possibility of the third wave of Covid-19 and the emergence of delta variant, however, causes concern for the industry.