India’s real estate sector has seen burgeoning demand for property over the past 12 months led by first-time buyers, buyers looking for bigger houses and second home buyers, Deepak Parekh said.

MUMBAI: The demand for real estate being seen over the course of the past 12 months is not merely pentup in nature, but is sustainable and here to stay for some time, said Deepak Parekh, Chairman of Housing Development Finance Corporation.

Parekh, who was speaking at Global Proptech Summit, said he has been surprised by the upside in real estate demand since the start of the Covid pandemic.

India’s real estate sector has been seeing a spike in demand for property over the past 12 months led by first-time buyers, people looking for bigger houses and second home buyers, Parekh said.

He believes the work from home culture has diminished proximity to workplace as a factor in real estate purchase and allowed buyers the choice of a wider market for residential purchase.

Parekh said low interest rates, softer real estate prices during the pandemic and the fiscal help from governments for the sector have played their part in propping up demand.

The veteran businessman implored the industry to embrace technology as less than 1.5 per cent of real estate revenues are currently spent on technology. He made a case for faster technology adoption by the real estate companies, which he said would be key to sustainability of the industry.

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