With the Covid-19 pandemic becoming endemic across the country, people have gradually learnt to accept the ‘new-normal’ and imbibe it to their lifestyle. A notable change that came to existence, since the pandemic struck is the concept of work from home (WFH). It started with the focus solely on keeping employees safe at home and gradually became the most popular work trend all over the country.
This led to companies stepping away from large real estate construction projects and lease deals. The workplace environment began to bear a scanty look with a depleted staff. The focus now has shifted primarily to an employee’s health followed by better communication while WFH.
The pandemic ensured that people begin to seriously consider homeownership where the idea is to own a home and give it an office-like makeover alongside a homely touch. Instead of going for multipurpose projects and erecting skyscrapers, developers and real estate firms have begun to cash in on this trend; by tapping the consumers’ minds. There was also a faster adoption of digital technologies by builders. On the other hand, some developers in partnership with architects are even going an extra mile to infuse business centres to give WFH population an office-like look.
This new trend of WFH also ensured that a major chunk of the middle class that is city-centric (based in New Delhi, Mumbai, Bengaluru, Hyderabad and Pune to name a few) flies back to their respective homes as the pandemic-induced-WFH is here to stay. The developers have begun to shift their attention to tier-II and tier-III cities as the demand for affordable living increased during the pandemic with more and more people wanting to stay indoors while kids attending online classes.
REALTORS PIN HIGH HOPES THIS YEAR
The realty sector like most of the sectors staged a rebound from 2020’s economic downturn. It also stands at firm ground after tackling the pandemic gloom. Housing sales have witnessed a rise of over 50 per cent, thanks to a sharp rise in WFH. However, it is yet to reach pre-pandemic levels. This uptrend has ensured the property dealers pinning their hopes from 2022 beginning with the Budget (that is scheduled to happen on February 1).
Economic revival is on cards as the real estate sector is projected to reach $1-trillion-mark by 2030 from $200 billion in the pre-pandemic year.
The year 2021 began on a positive note for the real estate sector as the sales were strong during the January-March period, assisted by low-interest rates on home loans, pent up demand, discounts offered by cash-starved developers and lower stamp duty offered by some states.
NAREDCO President Rajan Bandelkar described 2021 as a “year of recovery”. He said, “The declining number of cases and resurgent homebuyers’ interest paved the way for a sustainable recovery”.
The central government also extended an additional tax deduction of Rs 1.5 lakh on interest paid on housing loans for the purchase of affordable homes by one more year to March 31, this year; thereby facilitating recovery to the real estate sector. The additional deduction of Rs 1.5 lakh over and above Rs 2 lakh was brought in Budget 2019.
The government should focus on demand stimulation measures to sustain economic recovery. It should look for ways to boost private consumption and incentivise the real estate sector in the upcoming Budget.