Real estate has a healthy demand outlook, but some hiccups remain

The second wave may affect Q1, but there is a strong expectation that FY22 demand will perhaps equal or surpass FY20 levels

In the last few years, the real estate sector has battled a number of headwinds from disruptive policy reforms (though good for the long term), margin compression, tight liquidity, and Covid-19. This has caused a massive consolidation, driving many developers out of business, while rewarding the survivors with higher market share. Accompanied by tight availability of credit in the sector, this consolidation will also help keep the oversupply risk in check in the coming years.
 
The sector is made up of several property types, each with a distinct market cycle, challenges, and opportunities. Covid-19 has caused short-to-medium-term demand disruption