WHAT ROLE DOES EMPLOYMENT GROWTH PLAY IN REAL ESTATE RECOVERY?
Following the second wave of unemployment this year, a bigger number of people were affected, particularly small traders, daily wage workers, and those engaged in pandemic-hit sectors like travel and hospitality. According to the Centre for Monitoring Indian Economy, after peaking at over 11% in May, general unemployment in India has steadily decreased to around 9% as a result of mass vaccination coverage and phased opening across states.
With a multiplier effect on 270 linked businesses, Indian real estate is the second largest employer.” A favorable policy environment, lower GST on key raw materials such as steel and cement, fiscal stimulus from the government in the form of stamp duty waivers or cheaper ready reckoner rates, and a plethora of large infrastructure projects would all encourage developers to start new projects. This will help the job market”, says Goel Ganga Group owner, Atul Goel.
JOB SECURITY MOTIVATES HOME PURCHASES A F F O R D A B L E HOUSING IN M ETR OPOL I TAN AREAS WAS DEFINED IN M A R C H 2019 AS RESIDENCES COSTING UP TO RS 45 LAKH, WITH A 1 % GST ON UNDER- CONSTRUCTION PROJECTS IN THIS PRICE BAND. THIS P R O M P T E D M A N Y FIRST- TIME PURCHASERS, P AR TI CULAR LY MILLENNIALS, TO E X P L O R E PURCHASING A H O M E R A T H E R THAN CONTINUING TO RENT. ACCORDING TO GANGA B H A G Y O D A Y TOWERS REVIEW, IT IS A PRECISELY CONSTRUCTED P U N E P R O P E R T Y LOCATED ON SINHAGAD R OAD AT A GOOD POSITION. IN THIS COMPLEX, YOU CAN H A V E A UNIQUE LIVING EXPERIENCE.
From a business standpoint, there is rising optimism that the following quarters will see more employment growth and, as a result, increased house buying activity. The ongoing immunization campaign has had a favorable influence on the workforce and employee occupancy. The employment rate, which plummeted to 9.19 percent in June from 11.9 percent in May, demonstrates this.
At this rate and with these incremental signals of recovery, the economy is likely to return to its previous levels of 7%. Hiring has been ramping up, which will have a beneficial impact on millennials’ or firsttime buyers’ home investment selections, particularly in the cheap housing category.
Increasing employment through incentivizing it
ACCORDING TO ATUL GOEL GA NGA PUNE, R EGU L A R L Y CREATING A F F O R D A B L E HOUSING SHOWS THAT CREATES JOBS, BOTH DURING CONSTRUCTION AND THROUGH N E W C O N S U M E R SPENDING ONCE THE HOMES A R E OCCUPIED, JUST AS IT DOES WITH MARK ETRATE HOUSING. THE C ON S E QU EN C ES OF CONSTRUCTING CERTAIN TYPES OF INEXPENSIVE RENTAL HOUSING A RE C O M P A R A B L E TO THOSE OF C O M P A R A B L E MARK ETRATE UNITS.
We can anticipate potential buyers to reconsider their intentions for real investments if their income improves and remains solid. While government efforts like as the PMAY, stamp duty reductions, and cheap borrowing rates have aided in the segment’s expansion, maintaining the pace would require a focus on employment creation in terms of the abilities that will usher in the sector’s and economy’s next phase of growth.
AS A RESULT, IN THE EARL Y PHASES OF THE PANDEMIC, BUSINESS MODELS A R E BEING RE- EVALUATED, AND N E W IDEAS A RE BEING EXPLORED. IT’ S N O W TIME TO FOCUS ON IMPROVING THE WORK PLACE, ATTRACTING TOP PERSONNEL, GENERATING I NC R EM EN TA L VALUE, AND EMB RAC ING A DIGITAL- FIRST STRATEGY FOR THE FUTURE.