New Delhi: After it was badly battered by pandemic-led lockdowns, the ease in restrictions and subsequent economic recovery has boosted the volumes of the domestic real estate sector, say industry insiders and analysts.
The trend is expected to continue during the upcoming year, they say, adding that the sector’s current volumes have almost reached the pre-Covid levels.
“The factors that have supported strong recovery in demand are expected to remain in place for the near to medium term as well, including increasing preference for own homes as against renting, higher demand for larger homes with better amenities, as well as, improved affordability,” said Mathew Kurian Eranat, ICRA, VP.
“Thus, the demand trends are expected to sustain going ahead into 2022 as well with developers lining up new project launches to meet the demand.”
IIFL Finance’s Head of Real Estate Business, Pranav Dholakia said: “Residential real estate space has seen an uptick over the last few months largely driven by increase in economic activity post the second wave.”
“A sizable pent-up demand for quality homes, better affordability due to soft interest rates and supportive government policies have created a conducive environment.”
However, a rise in input costs for construction materials has become a major headache for the sector.