As is everything else, the real estate sector has also been badly affected by the pandemic. The after-effects of the pandemic on the already struggling real estate sector have been immense. But it’s not all bad because so many people are coming up with so many innovative steps as well. What’s even surprising is that some sectors have grown in no time and have been positively affected by the pandemic. While for others, it’s been a mixed ride – one such sector is the real estate sector.
According to Niranjan Hiranandani, Co-founder & MD of Hiranandani Group of Companies, “The real estate sector is under a K-shaped recovery. Some places are booming. Places like Bangalore, parts of Mumbai like Thane, Navi Mumbai are booming while other places like regions of Delhi NCR are struggling to find their way towards growth due to several reasons like insufficiency of funds, labor, or permissions.
When asked about the on-ground situation of the real estate sector, he said “I am going to use the economic term ‘K-shaped’ recovery” because some places and segments of real estate are booming while others are struggling. Places like Bangalore, some suburbs of Mumbai are gaining from the situation and the situation is getting a lot better now. While other areas like the projects which were in the peripheral regions of Mumbai have been stuck as it is and is not even moving ahead any further. There might be various reasons for this- be it lack of funds, denial of permission from RERA, or lack of availability of laborers. So it is basically a good, bad, and ugly kind of a situation because some projects and companies are doing very well while there are others that are not doing so well.
Development in the Not-So developed areas
Since approval rates have increased and interest rates are so low, it has helped real estate companies and businessmen to grab this as an opportunity and come up with the best plans possible. This is going to have a positive impact on the slum areas too and will help with their steady development. Also since demands have increased people have, irrespective of the price started planning on investing in real estate projects. Since raw materials price has gone up, no time in the near future we are going to see a dip in the real estate projects. But with the increase in demands, low-interest rates being offered by banks, and lucrative offers being made available by the company, we are going to see a lot more increase in the upcoming months as far as real estate is concerned.