SANJAY DUTT writes along with residential, we are seeing commercial sector too well poised for recovery
Despite disruptions and market upheavals during the pandemic, the real estate sector has achieved a remarkable recovery.
Government incentives, lower interest rates, resuming economic activities, and increasing desire to own physical assets have fuelled the dream of homeownership amongst home buyers. Furthermore, affordable property prices, discounts and offerings from developers, payment flexibility plans, etc., encouraged fence-sitters to make their purchase decisions during the pandemic. This transformed the sector into an end-user market with an evolved sense of preferences with changing consumer behaviour and market sentiments.
We saw ready-to-move-in and near-to completion projects receiving a good response from the home buyers.
We believe the real estate business will continue to do well with the market's pent-up demand, the job market's uptick, the mass rollout of vaccines, and decreased infection rates. These factors have and will play a significant role in increasing the demand for housing in India in 2022.
Along with residential, we are seeing commercial sector too well poised for recovery. The reopening of workspaces has provided a fillip to the commercial real estate sector. Due to lucrative and stable income potential, we expect commercial real estate to continue to be on investors’ radar.
We are expecting a surge in demand for Grade A offices, flexible/hybrid office spaces to increase with big companies planning to bring their workforce to offices. Additionally, leasing of large-quality office space is likely to increase as companies are increasingly hiring thus boosting the demand for commercial spaces across all cities.
Overall, we believe that the real estate market will continue to resurge in 2022 as well. (*The author is MD & CEO, Tata Realty & Infrastructure Limited)