The Indian housing sector looks to emerge stronger as the country steps into the post-COVID world because of various positive factors emerging, says a report “Indian Housing Sector: Disrupted, Transformed & Recovering” prepared by FICCI-Anarock.
However, Mr Getamber Anand, Co-Chair, FICCI Real Estate Committee, in his preface noted “While the sector was on a growth trajectory since the last few years and was likely to emerge stronger than before, the current coronavirus lockdown has surely put brakes on its growth momentum. Industry estimates of the Indian real estate market, prior to COVID-19 outbreak, was projected to be USD 650 Bn by 2025 and USD 1,000 Bn by 2030. This certainly seems tough amidst the current circumstances.”
According to the report there are several factors going in favour of real estate industry in post-COVID world. India’s large population base of over 1.37 Bn residents provides a huge domestic consumption base that attracts businesses from across the world to set up their operations here. Also, the availability of talent pool – skilled and unskilled, basic infrastructure in place, and the presence of good quality commercial offices at sub-dollar rentals act as facilitators to global business establishments.
Along with the rising population, India’s urbanization rate has also increased from 30% to 35% over the past decade and is likely to reach 40% by 2036. While India continues to grow and urbanize, it remains a housing deficit country which indicates that the inherent housing demand in the country may never fade away.
Meanwhile, the report also cautions that rising urbanization may create tremendous pressure on the existing resources and infrastructure resulting in the proliferation of slums and unorganized dwelling units in urban areas.
The report also commented that the Indian real estate sector has been experiencing continuous transformation since the turn of the century and has become better organized, compliant, accountable, and transparent compared to what it was during the last decade of the 20th century.