Impact On India’s Real Estate Sector
By Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani
Indian real estate has faced several ups and downs over the past few years. While some green shoots were emerging for the real estate industry after facing headwinds due to reformatory measures and liquidity crisis, the sector has once again confronted a challenge that may have a considerable impact.
The coronavirus outbreak has globally disrupted the business cycle leading to a slowdown. While the government has taken quick relief measures during the pandemic, the expected reduction in the GDP growth rate to less than 3 percent if the situation worsens further, as per reports, is a cause of concern. In the real estate sector, the construction has been halted due to the lockdown. In the next few months there may be a dip in the pace of the sector with reduced new launches and extension in completion of projects. However, housing remains a basic necessity and demand will continue to exist once the situation normalizes.
As mentioned earlier, the sector has displayed tremendous resilience in the past while battling challenges, and it does have the potential to gradually overcome the challenges thrown by the pandemic. We expect a helping hand from the government for the sector to tide over the existing crisis. While the presence of the pandemic remains for an uncertain time, there is a certainty in the damage to the real estate sector in this year.