IN 2019 when the Covid Pandemic hit India and the first massive wave spread like wildfire the prices of the properties started to crash. There were many reasons for this unprecedented crash. The slowdown had started with the Demonetization of the currency and the introduction of RERA. The demonetization created a shortage of ready funds and also a panic in the market and the sales of residential properties came to a grinding halt. This was in addition to the implementation of the RERA (Real Estate Regulation Act) which aimed at creating transparency in dealings and also to instill accountability amongst the builders. During 2020 and 2021 the economy suffered and led to job loss for millions of private employees all over India. This further aggravated the situation.
Now that the second wave is almost over the outlook for the market is looking a lot rosier as demand has once again increased. According to industry sources it is expected that by 2023 the demand for real estate will have recovered and the industry will be seeing a steady increase both in price and in demand. Residential accommodation (flats) will see an increase of at least 5% in value. This increase is also being supported by the Government impetus to promote the construction of affordable housing in India. The warehousing segment is expected to maintain the growth rate driven by the demand by the e-commerce and 3 PL players.
The commercial segment is also expected to improve with the economy getting back on track and the improvement in the employment market and the return of the jobs. IT companies foresee massive rehiring of work force. The tourism and hospitality industry which was hit hardest is also expected to see steady recovery during 2022 and 2023 with rehiring of the staff by the companies which had laid off most of the workforce.
So the situation is definitely going to improve and this is a very proper time for people looking for middle term investment opportunities to invest in the sector.