India’s real estate sector, which suffered due to the COVID-19 pandemic, is showing signs of steady recovery, says Deloitte Report. The report titled Reality of reality in a post-COVID-19 highlights the important trends of recovery for the sector.
The COVID pandemic has triggered a change in consumer behavior and that is one of the factors enabling this sector to bounce back. Even though the first wave had a far bearing impact on the residential real estate, the report says the sub-sector was quick to regain its balance. 74% of respondents that participated in the survey expect that there will be an increase in demand for the residential sub-sector, of which, 86% indicated a 10-20% increase.
Aditya Kushwaha, CEO and Director, Axis Ecorp, said the real estate market is not ready to taper right now and will continue to move in a fast direction amid pent-up demand. “Interest rates also have a major impact on the current boom. During these uncertain times, homebuyers are scouting for projects that are spacious, deploy sustainable materials and are giving preference to self-sustaining societies,” Kushwaha said. “They are expecting a better experience and long-term connection with their house. We believe that given the changing needs and aspirations of the people, the affordable housing and holiday home segment will continue to flourish in the coming few months.”
The survey predicts that the demand for data centres will pick up in India. 88% respondents believed that demand for data centre real estate after COVID-19 will shoot up with technology, innovation and data taking centre stage, owing to the digital narrative. Data privacy and data localization policy reforms and initiatives by the government mandate India Inc. to focus on local establishments. 56% of respondents believe that there will be a spurt in demand for newer data centres.
It highlighted that the effects of the pandemic have been far-reaching in all industries, but it seems clear that COVID-19 has fundamentally changed things in the commercial real estate space. Moreover, the survey believes that India is expected to touch $4 billion in the next three to four years. There is a lot of potential for growth in the data centre market in India and that is evident from the rising demand of data centres and the sheer volume of cables that are being laid around the established hubs.