Saturday, January 23, 2021

Editor's Space

Wishing for the BRIGHT SKIES!



With the Indian economic growth wheels taking a slow and steady uptick, all is not lost for the biggest employment generator in the country – Indian real estate and construction market, which is set to witness a gradual demand uprise as well in the near future. And we are not just being optimistic without a reason… here’s the proof…. The 26th Knight Frank - FICCI - NAREDCO Real Estate Sentiment Index Q3 2020 Survey revealed that the real estate sector is on a path to revival with residential sales volumes increasing to 55% in the July to September quarter. The ‘Future Sentiment Score’ for Q3 2020 is in the optimistic zone at 52 points, up from 41 in the previous quarter. The ‘Current Sentiments Score’ (for past six months) also recorded a significant improvement from the previous quarter low of 22 points to 40 points in Q3 2020.



The demand seems to be backed by the recent notification issued by the RBI wherein new housing loans will attract a risk weight of 35% where LTV is less than 80% and a risk weight of 50% where LTV is more than 80% but less than 90%.With revision in the risk weightage, the requirement of capital provision for banks will come down. This will encourage banks to push housing loan products with attractive features. This measure, according to the RBI, is expected to give a fillip to bank lending to the real estate sector, which is critical for economic recovery, given its role in employment generation and the inter linkages with other industries.



Not only this, Private equity (PE) investments in India’s real estate sector also picked up in June-September quarter, as the lockdown was being lifted gradually. In those months, the real estate sector attracted $2.1 billion — 90% of the total PE investment of $2.3 billion in 2020.



Leave aside the gloom and the doom… let’s RISE to the occasion and work towards giving this sector a new lease of life on the back of digitalization, affordable housing and sustainable avenues.



As we welcome the festive cheer amid the Covid pandemic, here’s to the new beginnings for the real estate and construction market to take the Indian growth journey on the NEXT HIGH!



Wishing you the very best Diwali and the most promising New Year!

Leave a Comment

Email Address
(will not be published)