When the foundation is strong...
The Hindu
A look by Shrinivas Rao on how the real estate industry withstood the pandemic
The year 2021 held renewed hope of revival of the economy with a slew of vaccinations announced to counter the pandemic. The industry had hardly breathed a sigh of relief with the commencement of the vaccination programmes when the second wave struck, bringing business activities to a standstill anew. Yet, despite the severity of the second wave, the real estate sector of the country strove to withstand the impact, signifying strong fundamentals ruling the market.
The sector was in a relatively better position in 2021 compared to the previous year, as most of the systems required were in place, with technology playing a major role. From an economic perspective, a few of the indicators, including GST collections and FDI inflow into the country, kept up confidence in the business environment. Thus, barring the second quarter of the year, the office markets showed fair traction, attributable to positive expectations emanating from vaccination drives, increased mobility and the imminent return of employees to work. Institutional investment in real estate, too, saw substantial improvement in 2021, with several large deals inked during the year.