New Delhi, Jan 31 (IANS): The demand for residential segment in real-estate is expected to increase by 8-10 per cent in FY 2022 and this will increase in all the segments - mid-income, high-income, luxury and premium segment, says Pankaj Bansal, Director of M3M India, one of the fastest growing real-estate developers in India.
Many reports suggest that the post Covid conditions have shifted the mind-set of a large segment of home buyers to higher category. The buyers are looking forward to invest in real-estate but also looking for value of their money. They need luxury which is at their door-step. Golf course, clubs, swimming pools, evening walk corridors, green-belts, recreation facilities etc. are all in high demand from the buyers. Buyers are also looking for some extra space within the accommodation which can have multipurpose use. And above all, they are looking for timely possession to address their home-loans and EMIs.
The inventory that accumulated since 2020 due to Covid restrictions and lockdown is also clearing steadily due to sudden boom in the demand. Whether this inventory will play a decisive role in deciding upward movement of price, is yet to be seen.
"The inventory available at residential complexes at M3M India is selling at a premium of 8-10 per cent, though we hardly have any inventory left now," says Bansal.
Most of the developers are expanding business and are looking into purchase of new parcels of land.
"Seeing the growing demand, M3M India is also expanding the business. We too are acquiring new parcels of land though we already have a large bouquet of land. You will also see many upcoming projects of M3M India being launched in coming months. We would also want our customers and investors to have smart information about our projects and deeper understanding of overall real-estate sector. They have the right to know how the assets they have purchased or likely to purchase, are expected to give returns in near future and in the long run," he said.
Real-estate sector is looking forward to the budget which is now just a few days away. The government is also keen to give a push to the sector which has been looking forward to relaxation in the taxes and change in home-loan rates.
"We are expecting this budget to be quite ambitious and expecting increase in average home loan ticket size for buyers and to give a booster to Indian Economy. It is essential to further relax Income Tax slabs and increase rebates under IT sections 80C, 80EE, 80EEA and 24(b) of the Act. The young buyers, below the age of 35 years, are quite aggressive and emerging as young millennial borrowers of home-loans," says Bansal.
According to a report by Indian Real Estate Industry, August 2021, the real estate market is all set to reach market size of $1 trillion by 2030 and will contribute 13 per cent to the GDP by 2025.
The report also predicted that the market growth to $9.30 billion (about Rs 65,000 crore) by 2040.
As per Department of Promotion of Industry and Internal Trade Policy (DPIIT), the real estate sector is also the third largest sector in terms of FDI flow, it is second largest employment generator, and the third largest sector to induce economic growth.
Reports also suggest that residential sector will regain its boom and demand will increase considerably.