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Top 10 reasons affecting real estate industry in 2021

November 25, 2021 | Silky Malhotra

Top 10 reasons affecting real estate industry in 2021

The real estate sector in India has been long grappling with various issues, from limited availability of land for construction activities to old-fashioned building techniques. Also, the very recent COVID-19 pandemic has led to a huge turbulence in the entire sector. It is high time that the Government offers immediate solutions to the rising issues in the real estate sector and helps the worried real estate builders and home-seekers.  Listed below are the top 10 reasons affecting India’s real estate industry in 2021.

Unavailability of land for construction

Government should spare the large share of land areas that are underutilized and vacant for the construction of new projects through land readjustment, land regulations, and land pooling policies. This will help the realty sector grow and improve the state of financially aggrieved realty builders.

Long-pending housing project

This is another reason which is affecting the real estate sector in India. The main cause behind the delay is the irregular funding and lack of modern technologies to complete the project on time.

Old-fashioned building techniques

The realty sector in India is still using the old-fashioned building techniquesand is excessively dependent on human labour. It is high time that the developers now use modern building techniques that will not only reduce construction time but also will lessen labour cost and guarantee faster project deliveries.

Covid-19 Pandemic

The Covid 19-pandemic is also a major reason that has affected the real estate industry in 2021 in any ways. Due to the pandemic many big realty developers had to slash the property rates or had to offer huge discounts and flexible payment plans to the buyers to meet their daily operations.

Lack of affordable Housing

This is a serious issue affecting the real estate industry in 2021.   People are finding it extremely difficult to find affordable housing mainly due to the demand and supply gap in this sector.

Capital Market Risk

Capital market risk is another issue that is affecting the real estate industry. In thelast few months it  hasshownnot only  the real time volatility of the capital markets, but also confirmed how fast debt and equity capital liquidity can end flowing when risk and returns are hard to measure.


With the ever growing population, the need for real estate property in India is growing very rapidly. Developers need moreland areas on a large-scale to construct more housing projects, but due to the increase in population and lack of land areas people are finding it difficult to find a place for living.


Immigration is another factor that is affecting the realty market in India. Immigration has led to increase in property rates and rents, and thus, has lowered the possibility of affordable housing.

Remote Work and Mobility

The COVID-19 pandemic caused a significant disturbance in where and how people live and work.  Remote working may mean people may no longer need to live in areas near their workplaces.

Natural disasters

Last but not the least, natural disasters is also an important issue that affects the real estate industry. Sometimes, natural disasters play havoc on developers and home seekers and thus, affect the real estate industry.

Impact of COVID-19 on Indian real estate sector

The real estate sector in India has suffered a huge setback during the first and the second wave of the COVID 19 pandemic. When the country went into a complete lockdown between March and June 2020, the property transactions came to a near-halt and this greatly affected the Indian real estate sector. However, since then the realty market has taken several steps towards recovery. With an aggressive vaccination drive across the country, the real estate industry has begun showing signs of a sustainable recovery.

As COVID-19 cases is decreasing all over the country and most states are opening up and the economic activity is getting back to normal, the real estate sector is hoping to recover very soon and many of the renowned real estate builders are coming up with their new launch projects in different parts of the country. Pune, a loved and on demand city for residential as well as commercial projects has also been watching coming up of new projects.


Pune has grown up as the most on demand residential destination among buyers and developers. There are numerous attractive and comfortable projects coming up in the city and Panchshil Yoo Villas is one of them. Located at Wagholi, the township offers modern residential villas of various size and at best price. A project by Panchshil realty , the houses have been beautifully crafted with modern day amenities and facilities. The township is well-connected with a superb social infrastructure. Another project by them is Panchshil Towers Pune located at Kharadi, Pune offers 3.5, 4.5 BHK apartments.


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