New housing project launches in 2021 will continue to be in the affordable and mid-segment with real estate developers trying to reap the benefits of strong pent-up demand, a report by JLL titled 'India Real Estate Outlook – A new growth cycle' has said.
In 2020, more than 80 percent of the new launches were in the sub Rs 10 million category. Moving ahead, new launches will remain concentrated in these price segments. The government is also committed towards boosting affordable housing, the report said.
The recent Union Budget has extended the benefit of additional interest deduction on home loans for first-time homebuyers in the affordable segment. Further, there is a time extension to claim the tax holiday on profits from affordable housing projects until March 2022.
The organised shared housing market in India has also seen influx of several organised players in a bid to tap the opportunities arising out of the strong demand from a growing millennial workforce and student population. While the market took rapid strides in the past few years, 2020 brought the co-living and student housing sectors to a grinding halt.
As migrant millennial workers move back to the major cities and higher education institutes resume physical classes, occupancy levels in organised setups are expected to go up and gradually return to 2019 levels by the end of 2021.
There will be an increased focus on health and wellness aspects in the post-COVD era, which is expected to drive demand for organised co-living and student housing setups, the report said.
The role of organised senior living facilities, which are designed with senior-friendly amenities such as medical support on call, services for food, housekeeping and assistance around the clock became more prominent during these trying times. This has increased the attractiveness of such facilities and demand for organised senior housing setups is expected to pick up in the near future, it said.
“With economy picking up and employment witnessing stability, housing sale is expected to sustain the existing momentum for the year 2021. With the property prices bound to go up because of the rising demand, investors are likely to come back to the market by last quarter of 2021. In short, residential business can look forward to a rounded growth with both supply and demand soaring,” said Siva Krishnan, MD & India Head, Residential Services, JLL India.