The Union Budget for 2020-2021 was announced last year. Some of the budget's prominent highlights included deductions on affordable housing, and the loan sanction date has been extended. Last year was a period of several ups and downs for the Indian real estate market. In 2019, the NBFC crisis led to a liquidity squeeze, and the pace of sales recovery was at snail speed.

However, the launch of India's first-ever Real Estate Investment Trust (REIT) paved the way for new investments and several initiatives from the government. The housing sales in 2019 saw a modest 4-5 percent annual growth with over 2.5 lakh homes sold during the year.

The new housing launches saw 18-20 percent growth, and property developers are eyeing immense development in the property development sector. According to the real estate entrepreneurs, if the government hosts additional deductions on loan interest and GST rate cuts, it would strengthen the industry, especially affordable housing-led growth.

In India, the real estate market in the second-highest employment generation sector after agriculture. Yes, the real estate sector owes nearly 6-7 percent of India's economy, and it is expected to hit almost 25 percent by 2025. After GST and RERA plans' crises, the banking system's enhanced liquidity and restoration of buyer confidence were developing at a snail's pace just before COVID hits Indian states. Over time, the real sector was laid back just like all other sectors – resulting in a more significant setback of the Indian economy. However, with the vaccinations being rolled out and with the mass vaccination drives, it is expected that the real estate market will bounce back to normalcy in a short period.

As a result of this pandemic, the buyers' preferences in purchasing land might get affected in 2021. People will be more concerned about choosing larger layouts where the sanitation, hygiene, and other safety aspects are questionable. When it comes to commercial real estate, the satellite offices in non-conventional micro-markets will be fastened up.

Further, the most-followed IT culture – Work from Home (WFH) will also have an adverse effect across the IT buildings as they might face medium vacancies in the first quarter of 2021. However, as we mentioned before, as the vaccinations roll out, this situation may turn the table in the second quarter of 2021. The increase in FDI is also a strong factor indicating commercial real estate recovery as we march towards the second half of 2021. Though there are short-term disruptions, India's commercial real estate continues to flourish and attract fascinates investors to eye on long-term profits. Besides the relaxations being extended further by the government, both the employees and employers are admitting an equal balance of in-office and remote working options.

In a nutshell, 2021 will see a strong investment flow as the liquidity of global central is eased. With the amendment of SEBI and REIT rules, the realtors can expect an inflow of investment in commercial real estate that offers an attractive return as compared to other sectors.

The real estate prices in the top-tier cities are expected to stay firm with upwards growth as the demands get high. With greater economic and policy reforms and lucrative packages introduced by the authorities, the real estate sector is expected to have an affirmative outlook in 2021. The sector is also confident with a neat budget plan from the Finance sector, which will act as a catalyst to improve the real estate sector.

Are you looking to buy your dream home or land this year? Then head to the Sulekha properties site and get connected to professional service providers who will guide you through buying houses or any property forms at top localities in Chennai or any other prime cities in India.