India's Real Estate Sector Making a Strong Comeback
Increasing demand across residential, commercial, warehouse and office spaces, is driving sales, even as developers contend with the upsurge in construction costs due to the hike in raw material costs. Developers are also going digital - from project conceptualisation and designing to planning and project management to using advanced construction equipment and innovative construction techniques – they are modernising and upgrading their front- and back-end processes. And despite the many hiccups, the sector is set to make a strong comeback in FY22.
The real estate sector, which had recently started seeing green shoots of revival amid record-low home loan interest rates, stamp duty reduction by state governments and stable prices (most developers have not increased property prices while prioritising liquidity over profitability), is once again faced with many issues. Within just five weeks, the Repo rate has been hiked twice, even as the rising cost of construction owing to the increase in price of raw materials like steel and cement continues to impact the sector.
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NBM&CW July 2022
