India’s real estate sector showed resilience in 2019. The residential market across the country’s top seven cities recorded a growth of 6% y-o-y in the number of units sold and office absorption touched historical highs. As uncertainty grips the world, the year 2020 has started on a turbulent note. The COVID-19 outbreak has led to a global health crisis; putting pressure on economies across the globe. In the aftermath of this ensuing slowdown triggered by a weak business climate and ongoing liquidity concerns, the Indian real estate market, which contributes nearly 8% to the GDP, is likely to be adversely impacted.
Given the distressed economic environment triggered by the health crisis and the resultant dent in consumer sentiments, the Central government with the support of the state governments and the Central Bank have introduced several relief measures for the economically weaker sections and the economy at large. The impact of these measures will be seen in the short to medium term to deal with the immediate challenges faced by different stakeholders within the real estate sector. However, there is a need for additional interventions as well to help the real estate sector gain ground in the long term.
