India's residential market will witness growth in the coming years on rising demand while housing prices are expected to appreciate on account of increased input costs, according to industry experts. Participating in a CII-Anarock webinar on Friday, real estate developers and consultants said they were surprised with strong recovery in housing sales both after the first and the second wave of COVID.
Overall housing market shrunk during the pandemic but large-branded developers have gained market shares, they added. The session was being moderated by Anarock Chairman Anuj Puri.
Replying to a query on housing price outlook, Oberoi Realty Chairman and Managing Director Vikas Oberoi said price rise in housing market was "inevitable" as "there is clear cost escalation taking place". He also said the prices would be driven by rise in input costs and supply crunch.
According to him, developers, big or small and listed or unlisted, who have better execution track record would continue to do better. "I clearly see consolidation and growth," he said, adding that the consumption of real estate has started going up.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
Asked whether his company would enter affordable housing projects, Oberoi said the government need to come up with a strong policy and initiatives to boost this segment. The affordable housing segment would require the government subsidies, if it has to take off in a big way, he added.
Bengaluru-based Sriram Properties MD M Murali also felt that housing prices could rise by up to 15 per cent in the next one year because of rising input costs. Brigade group CMD M R Jaishankar said the Bengaluru market performed well despite the pandemic as IT employees incomes' were largely unaffected while their expenditure fell.
He observed that millennials have started to purchase homes as they want to invest in solid assets such as real estate. Ambuja Neotia group Chairman Harsh Neotia said the housing market recovered faster than he imagined because of rising importance of having home ownership and additional demand from millennials.
Irfan A Kazi, Chief Investment Officer of SWAMIH Investment Fund, highlighted the funding done by the Rs 25,000 crore-SWAMIH fund and said the target is to complete 10,000 stalled homes every year. Vipul Roongta, MD and CEO of HDFC Capital Advisors Ltd, said the company has been funding affordable housing projects in a big way.Ravi Agarwal, Co-founder and MD of Signature Global, talked about the success of its affordable housing projects in Gurugram, Haryana.