Mr. Murali Malayappan, Chairman and Managing Director, Shriram Properties Ltd. on how the year has been for realty sector and the industry outlook for 2021.
The most preferred property segments in 2020 were mid-income, affordable housing and plotted land development, and we see a considerable growth potential for these segments in 2021 as well. Covid 19 has made the prospects brighter for mid-income and affordable housing segments. The end-users’ current mindset is to own a house /flat with all safety measures and flexible design options to meet pandemic limitations and constraints.
Additionally, real estate is considered the best asset class to invest in the present economic scenario, with the falling interest rate of fixed deposits and stock market uncertainties. Therefore, there will be a further increase in housing demand and well-developed residential plots from the reputed builders in 2021. Commercial and office space will also witness a moderate rise in demand from the second quarter of 2021.
In order to achieve the mission of Housing For All, there needs to be a more significant thrust for this industry from the Government, including ease of doing this business, affordable capital availability and relevant tax cuts, enabling India to reach the $5 Trillion economy goal soon. We feel that this already rising demand in the housing sector will only further emphasise that the year 2021 belongs to the Real Estate sector.
– Murali Malayappan, Chairman and Managing Director, Shriram Properties Ltd.