Real Estate Industry: Outlook and Challenges

Wednesday, April 28 2021

The real estate industry has faced many wounds starting from the Demonetisation in November 2016, subsequent changes in GST, NBFC liquidity crisis among others, and the latest blow is the Covid-19 outbreak. The sentiment (of developers and lenders) which showed certain signs of stimulation during the OctoberDecember quarter of 2019, has suffered an enormous slowdown due to the Covid19 crisis with both current and future sentiment index falling to an all-time low in pessimistic zone.1 The residential sector which already had concerns of weak demand may find it difficult to launch new projects and complete the ongoing ones due to construction halts and labour shortage. With the second wave of infection beginning Feb’21, with increasing daily cases (especially Maharashtra), challenges are again on the upside. It is largely realized now that instead of lockdown, rapid vaccination could be a second best measure.

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