Positive signals for India's real estate sector as economy normalises

Demand expected to pick up; deleveraging, consolidation are key triggers

The real estate sector has seen speculative interest from traders and investors. Although it was hit hard by the pandemic, there are positive trends. One is that the business is expected to pick up, both in the residential and the commercial segments, as the economy normalises. Second, low interest rates could spur demand.
 
A third trend is that of consolidation. As the smaller under-capitalised players are forced out by the recession, better-capitalised players are grabbing market share.
 
Financial year 2020-21 (FY21) was poor. One indication would be that collections from stamp duty declined by close to 35 per