By Pankaz Jaiin
The economy is rebounding. We must thank the government for its efforts to contain the pandemic through necessary interventions and the trust of the people in the scientific community and vaccines when citizens of even most developing countries are rallying anti-vaccine movements. As the national economy propels, the cascading effect has its own role to play on the real estate sector.
The ‘unmatched blessing’ in the disguise of the pandemic caused by the novel coronavirus is that no matter what were the sentiments of the private sector, the government was unimaginably bullish on infrastructure development across the country. The state didn’t shy away from heightening its expenditure when recession was gazing at India. The net result is that today the economy has resurfaced on the higher growth trajectory with 8.4 per cent of GDP growth last quarter and most economists are of the opinion that we shall be back to pre-Covid health next year.
The real estate and construction sector have grown handsomely in the same quarter. Knight Frank India believes that both commercial and residential segments will find stability soon and its ‘2022 Outlook Report’ has reasons to believe that the real estate prices will soar by at least 5 per cent which is a great sign for the industry. The sector will reach a value of $1 trillion by the end of this decade.
Reform is painful but unavoidable for the nation’s health. The ‘purge’ of the real sector by the state by the means of eliminating money laundering routes, establishment of RERA, notification of Benami Property law and transparency in financial sector had brought the real or needy buyer to the fore and has defunct the ‘speculative characters’ that had marred the real estate business for decades in the country.
Innovative means to provide better adobes or living spaces to the buyers that doesn’t dent his pocket and propels the real estate sector too. Official data is out which discloses the levels to which the savings of the households have depleted in the pandemic but they continue to swell demand side. Our industry must respect it and offer the best to these households.
Sustainability is not a ‘fancy word’ anymore. It’s a responsibility today. If we the ‘men of industry’ do not heed to environmental sustainability of each and every component of real estate business, the word will be a ‘compulsion’ tomorrow for all of us. Green buildings or sustainable construction should become the norm in the real estate world. What’s the purpose of making a lavishing house when we do not have a good planet to put it on?
The article was published on 5th December Print Edition, 2021