India’s real estate sector has been one of the few that actually benefited from the pandemic. Although the first half of 2020 saw slow growth, from the 2nd half of 2020 till today, we’re seeing increased demand, high sales, strong growth and improved conditions for homeowners and developers. Here are a few trends we’re expecting to see going forward.
2 Increase in demand for homes
With the after-effects of the pandemic still going strong, renters and buyers are now looking to upgrade their lives and live in more spacious, luxurious homes. With so many people still working from home or working more flexibly, it’s important to them to have a space they can feel productive and comfortable in. Residential sales figures from October-December 2020 show a 2x increase to 61,593 units versus the 33,403 units we saw in the previous quarter.
Rise in cost of materials
SILA has conducted a survey and learnt that across the real estate sector, there seems to be an increase of 7-12% in the cost of construction. This is due to the rise in the cost of essential materials like steel and cement, as well as ceramics, aluminium and copper. Due to this, developers are struggling to keep prices down however there has been inflation here as across many other industries. We at Sila have worked with Real Estate developers and created a dashboard that will help you in better understanding the cost of materials. Check out our real estate management services
The digital age
All over the world, everyone is going digital. Whether it’s for your payments or when buying your home. As leaders in the industry, we understand the importance of using technology to do business but also to be in touch with customers. From payments and planning to innovative ways to build homes, technology is now a better friend than ever before and will only continue to increase in importance and value.
The time of 10,000 sq. ft. offices is now over with many companies opting for smaller spaces where employees will work in a hybrid fashion. With the rise of remote work, companies do not expect to see 100% of their staff in office 5-6 days a week. Flexible work spaces, whether these be coworking spaces or multi-functional offices, are now in demand. Companies are also opting for satellite offices in smaller cities in order to offer employees more flexibility and options.
Overall, it is a great time to be in real estate! According to some sources, we can expect the real estate sector to contribute almost 10% of India’s GDP by 2030, creating a value of around USD 1 trillion. To learn more about our development projects in India, contact us at [email protected]. Check out our clients.