One of the most popular and tangible assets of the Indian economy is set to receive a huge influx of backing come 2021. Although recent events have sent the once flourishing sector into a slump, numerous experts have voiced their opinion, predicting a strong showing by the industry in the coming year. Contributing to almost 7% of the country’s GDP with numbers speculated to grow to as much as 13% by 2025 subjective to effective implementation of announced reforms, the news could not have come at a much better time.
Real estate, which has always been a strong contender to agriculture in terms of employment generation, is expected to bring in at least $6 billion in 2021 according to a report by Savills India. With the Government extending support to the real estate sector through its Atmanirbhar Bharat campaign and a substantial increase in Foreign Direct Investment, the real estate sector is on the road to recovery with current estimates showing a 30% year-on-year growth.
The latest report released by Colliers shows an increase of 14.6 % in institutional investments in the Indian real estate. This comes as a huge bonus in the backdrop of the past year which had seen a fall of 23% compared to 2019.
While commercial office assets have proved reliable in the long run, the residential sector is slowly gaining traction. Propelled by all-time low mortgage rates and discounts offered by developers, the residential sector is projected to make prolific windfalls.
The industrial and logistics sectors are also expected to reap significant gains with interests being shown by institutional investors. Siddhart Goel, Senior Director & Head of Research at Colliers, observed that the availability of the COVID 19 vaccine will revive the economy and bring in the much-needed funding for consolidation and growth.