2021 Likely to Witness a Strong Rebound of Residential Real Estate

The residential real estate sector in India would be witnessing a strong comeback in 2021 along with sustained growth over the next few years, thanks to government policies and increasing demand for housing in the city. According to an estimate, the real estate sector in India is likely to witness an expansion of 7.9% in 2021. In the subsequent years, the sector would grow by around 6.5% annually till 2030.

Experts point out the strong support of the government at the national level to the real estate sector. Besides, the government has allocated a significant amount for the real estate industry in Budget 2021. The Ministry of Housing and Urban Development (MoHUA) has been allocated INR 50,000 crore for this purpose. Considering that there are several stalled projects in the country, the government has also sanctioned an additional INR 25,300 crore.

Apart from this, the PMAY (Pradhan Mantri Awas Yojana) program is in place which supports the concept of assuring affordable housing to every family by 2022. The people from middle- and lower-income groups would significantly benefit from these schemes. Experts reveal that they do not expect that this deadline would be maintained. However, the strong backup from the government would continue to fuel the growth of the real estate sector.

The government has also come up with certain privacy initiatives to lend its support to smart cities. With better infrastructure and management in place, the real estate sector would significantly benefit in the coming years. The government had launched the Smart Cities Mission in 2015, with the objective of developing 100 cities. All these cities would have a strong infrastructure in terms of civic amenities. This includes efficient mobility in the urban zones, affordable housing, proper power and water supply and the deployment of technology to ensure safety and security. At the end of 2020, as many as 53 of these cities had functional, integrated command centres. This serves as the prime hub of administration in order to manage disasters and daily actions.

Experts also reveal that they expect the government to come up with reforms in FDI to boost investment in the real estate sector. In the coming years, 100% FDI investment in real estate may be on cards.