In 2020, the world was gripped by a pandemic that brought everything to a halt. As we enter the new year, the global economy is on its way to recovery and is preparing to tackle the new normal. Considering this global transformation, the real estate sector in India is set to welcome the future. The evolving real estate sector of India is re-establishing its foundation in the new normal of today. Supporting and nurturing this road to recovery are the various government initiatives that are predicted to provide the much needed impetus.
Here is how realty in India is leading the way for expansion by re-imagining the future.
Economy- A fast recovery rate of 96% has got India at the forefront of COVID-19 recovery. With the world economy expected to surge in 2021, global GDP has been projected to rebound to 5.5% this year. The government of India has taken various initiatives to ensure slow yet steady growth across the different segments of Indian real estate. India, alongside the world, is headed towards recovery in the current COVID era.
Office- Adapting to the digital age, the office segment is re-calibrating for the future. Providing low-cost yet efficient knowledge talent, India will continue to remain a preferred destination for global outsourcing. Further, with the evolution of a hybrid working model, there will be an optimization of the office portfolio through the right mix of traditional and flexible spaces. Nurturing the digital workspace will be enhanced technologies that will transform the way commercial properties typically function.
I & L- Redefining resilience in the challenging Covid era, the Industrial and Logistics segment has been an asset for real estate in India. E-commerce and third-party logistics are expected to lead the way for transformation for Indian realty while tech-enhanced spaces will gain preference and a well-connected supply chain model will take the lead.
Retail- Resetting in the new normal, the retail segment is expected to undergo transformation through technology. Regaining demand in evolving times, the retail sector is also focusing on reinventing customer experience. A massive growth is expected in e-commerce and flexibility in production cycles will be witnessed because of streamlined supply chains.
Residential- Revival of the residential segment will be led by increased sales in the mid-end and affordable segments. Demand for digitally enabled spaces is expected to increase with millennials emerging as a prominent consumer class. Completion of existing projects will pace up and project execution capabilities will gain focus. At the same time, developer consolidation will be defined through mitigation of execution risks.
Capital markets- Investment activities are expected to gain momentum due to increase in overall capital flows. Segments such as office, retail and hospitality will offer myriad opportunities for investment in real estate.
The year 2021 is expected to redefine real estate in India by bringing transformation through technological advancement and resetting new goals for growth.