A leading real estate entrepreneur believes that the regulatory aspects have also brought in a safe and secure environment to the sector.

The need for secured assets and aspirations to own spacious homes as remote working is fast becoming the new norm is driving sales of residential properties across the country. Further, investors are also warming up to Real Estate Investment Trusts (REITs) he said. He is also of the opinion that the regulatory aspects have also brought in a safe and secure environment to the sector. Edited excerpts:

 

This year, housing sales across major cities have been on the rise?

Where is this demand coming from?

The disruptive pandemic has predominantly reinforced the value of owned houses. The need for a secured asset that offers stability and safety in crisis is a goldmine investment against volatile assets. The remote working trend further fuel the urge to own a large spacious home in peripheral cities at attractive price points to integrate new normal living conditions.

 

In addition, market dynamics and policy regime are skewed towards nudging the fence-sitters to convert into the first-time home buyers and existing ones to upgrade into luxury homes catalysed by fiscal growth levers.

 

After the initial hesitation, REITs are gaining ground, and despite the pandemic, there were two successful public issues?

REITs are an alternative option for investment in real estate at a low unit price entry point. It reflects growing confidence in commercial real estate as an asset class. The Indian real estate investor has gradually warmed up to REITs. The two successful public issues are just the beginning of what will gradually grow in investor confidence.

 

RERA has brought in some amount of transparency and accountability to the sector?

RERA is moving in the right direction and is taking the industry to the right aspects of accountability. The regulatory aspect has brought in a safe and secure environment, one in which we see unscrupulous elements being weeded out. Obviously, this also leads to enhanced customer confidence.

 

Source:  https://www.thehindubusinessline.com/