India Real Estate Trends in 2021
The Indian real estate sector has transformed significantly during the past few years and the pandemic has accelerated the transformation.
In 2020, 1.28 lakh units of new residential supply were expanded across the top cities of India, while sales were measured at 1.38 lakh units. This large-scale decrease implied that the Indian residential market had bottomed out in 2020 and was plausible to enter a long-term upcycle from 2021.
Between Jan - Sep 2021, 1.63 lakh units of new residential supply were expanded across Indian cities, 27% higher than the 2020 full-year supply. And 1.45 lakh units were sold, 5% higher than in the whole of 2020.
The S&P BSE Realty Index was at 1,423 on 27th March 2020. On 1st Jan 2021, it was at 2,501 and as of mid-December 2021, it was at 4,028.
In 2021, a bull run was observed, not only in real estate stocks but also in the larger market. The appearance of the Omicron distress towards the end of 2021 has hindered this trend, however, mid-to-long-term possibilities remain positive as COVID-19 has been reinforced to a vast magnitude in India, and most businesses are back on route.