Real Estate On The Cusp Of Recovery Path

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Milind Korde, Founder & Managing Director, Ananta Landwise In the last quarter of 2020, the real estate sector was on the cusp of a recovery path. Across Maharashtra, property registrations have increased, with November and December being the best months witnessing the highest sales this year. The demand is increasingly coming from end-users evolving from consumer preferences in terms of space and lifestyle amenities. A requirement for functional homes, to accommodate the concept of "work from home", and the need to be self-sufficient within a secure environment, has led to consumers looking for homes that provide ample personal space both within the apartment & in the common spaces within the development. With the growth outlook looking promising, an accommodative monetary policy, recovery in external demand, and support in terms of government spending, we should witness stable and steady traction in the real estate sector this year. What are some of the realty sector’s issues that need immediate government attention? The government realises the need to support the real estate and infrastructure space, and stabilise the demand outlook. This is being reflected in the Maharashtra governments recent decision to reduce premiums on development approvals by 50% up to December 2021. Additionally, the stamp duty too is discounted till 31st March 2021, which will help propel demand. Such regulatory decisions will lend a positive support to the sector, and will play a key role in sustaining its revival this year What are the major changes Indian real estate will see in the coming years? The Indian real estate sector has undergone tremendous transformation in the past few years. One of the biggest trends that we have noticed last year was that people realise the need to have functional yet spacious homes, with recreation and convenience amenities being preferably located within the complex. Projects that have ample open and leisure areas the development and spacious and comfortable spaces within the apartment, and yet which come at an optimized ticket size, are likely to attract the homebuyer’s attention and interest. What are your expectations from the upcoming budget? The government has a tough balancing act to play between providing a demand impetus and yet keeping a watch on the fiscal deficit. We remain hopeful that the government will do its best to get the economy on a fast paced bounce back, and sustain long term growth.