Housing Revival - Govt. Must Partner with Developers
So far, 2020 was a nightmare for most industries, including Indian real estate where COVID-19 collided with all segments, causing varying degrees of damage. Commercial office space growth – on a bull-run over the last six years – has also hit the pause button as many large companies explore the work-from-home option. Residential sales are severely impaired due to the pandemic’s underlying uncertainties.
The collision was not a terminal event, though, and the sector can emerge from the wreckage with cuts and bruises but otherwise intact. In the housing sector, sales need to pick up. The market fundamentals are still strong, especially since the pandemic’s underlying mantra of ‘stay at home and work from home’ has made homeownership a new priority.
For the housing sector, COVID-19 couldn’t have come at a worse time. Many aspiring homebuyers were on the verge of making purchases when an avalanche of uncertainties struck and forced many onto the fence of indecision. Simultaneously, a new buyer segment entered the arena - millennials. This previously rent-favouring demographic took an unexpected U-turn and started exploring the housing market as convinced buyers.
Yet, the uncertain environment is seriously impacting overall demand. Even with discounts, real estate buys are massive investments and buyers need more confidence to make such financial commitments. Boosting demand is therefore not solely up to developers – this has to be a collaborative effort involving the government and banks, as well.
Read the rest here https://www.anujpuri.com/housing-revival-government-developers/
Enterprise Architect || Friction Fixer || Business Analyst || Senior Product Owner
4 年Why should the govt get in what is a purely a private affair? Why should the govt use the public money to support private players to get public buy a private property? Amrapali and all have really made a psychological dent in public mind of builders in cohoot with bankers and state govt to dupe them. Salaried class loosing jobs, paying salary for non serviced house helps, supporting local for vocal. cutting down on expense , banks going belly up due to corruption using public money , where is the trust left to believe any service provider except the grocery business where there is no choice. WHat measures have the real estate industry taken to build trust, throw out the dupers and over all improve the assurance of planned delivery date to actual hand over!!!
An astute Business Development Professional with Digital Marketing skills | Passionate about Stock Market
4 年Even though the Pandemic may have given reasons to buy homes, but the uncertainty due to pay cuts and furloughs have kept the sentiments low. With WFH culture gaining strength, commercial spaces too are taking a hit. RE is not an independent sector, none is. Unless, people get the security in terms of jobs and salary on one hand and safety from Covid on other, RE will have to suffer the brunt.
A.V.P at NHLML
4 年There is no perfect answer to the current situation...everyone is just saying out the same thoughts and opinions emphasising surveys saying New buyers are the millennials, affordable is the next segment, NRI will boost real estate etc...just assumptions... Can we have opinions based on ground report from Developers/Property Consultants with the actual monthly/quarterly sales numbers. I believe, at present survival is the key for a middle class buyer...
Real Estate
4 年Anuj Puri Sir: Interesting. I am of the same opinion. But this is being marketed at massive level. This will lead to delayed decision making. We should have decent fence sitters by the festive time. I am sure Real Estate Industry will bounce back in Q3 & Q4 of 2020.
Real Estate Agent at Stay Royale International
4 年They should also filter the consultants on the market and really utilise the potential of qualified professionals on the industry.