The ongoing COVID-19 pandemic has led to a huge crisis in all the sectors, and real estate is also one of them. In fact, as per the current trends, the real estate sector is going through a hiatus that is nothing short of depression. Not only the sales and rented property areas are affected, but construction and development operations are also affected. Most of the people are working from their homes and tourism operations are also suspended. With an indefinite tag allocated to the pandemic, it is hard to say anything about the real estate sector.
One of the biggest disadvantages is that even after the pandemic is over, people are most likely to avoid travelling or looking for new homes etc. With such a situation, all the people associated with the real estate sector are looking for ways to keep their businesses afloat.
In the following sections, we are going to discuss some of the major ongoing trends in the real estate sector. We are also going to reflect on the real estate trends in the post-pandemic situation.
Here are some trends we analysed in the real estate industry after the Covid-19 pandemic
- Commercial Real Estate Investment is expected to be on rise
While the latest surveys and studies have shown a drop in the interest of buying heavy-investment residential properties, commercial real estate is going to be a lucrative area. However, the builders in kochi are expected to deliver some new products and smart floor-plans that are relevant to the current pandemic, and even later. Commercial real estate is also going to take a front seat when it comes to medium-sized investments.
While it is expected that people are not going to buy or invest in crores, offering properties in mid-range budget might entice them to invest in the property sector.
- NRI rush and INR fall
All the market gurus are confident that the economy and market is going to experience a hit once again in the post-pandemic scenario. So, the value of Indian Rupee is going to fall even more and the government might have to take precautionary measures to maintain its value. However, the recent studies have also shown that NRIs are going to invest in real estate in India.
Amidst the market crisis, the NRIs will be looking forward to the safest and the smartest investment options. For such investors, real estate in India is a lucrative option. They would also want to look for investment options that offer them a rapid and assured return. Hence, commercial properties are going to take the priority in their case as well. The commercial properties are generally raised on rent for offices, businesses and commercial activities. Though the extent of working in a physical office will be reduced in future, the demand for commercial spaces will still be able to keep the business afloat.
- Real Estate Meltdown is a real scenario
Though the government is going to take some precautionary measures to balance the downfall introduced by the COVID-19 pandemic, a slowdown in the sector is a sure thing. Further, the unavailability of raw material for manufacturing and building because of paused imports from China are going to take a toll on the real estate sector. However, many market researchers are also speculating that this might just be the right chance to focus on indigenous production and manufacturing. If the indigenous production plants and manufacturing units are able to meet the requirements of the real estate sector, then the operational costs will be properly balanced. This way, it would be possible for the people to buy mid-range budget residential and commercial properties. As per the recent surveys, the majority of people are looking for options in residential and commercial properties that don’t exceed INR 50 lakhs. The realtors are expected to offer better deals and better bargains as well. So, all in all, the real estate sector will be under a lot of stress!
- Rented Properties are in for a loss.
With lots of people getting affected by the COVID-19 pandemic in terms of staffing and labour, most of the people are going to expect a cut in the rent. They will not only ask for rent cutting for just a few months, but they are going to ask for revisiting the rent matrix. They would expect the realtors to revise the rent table and downgrade the rent without compromising with the facilities and amenities. This, in turn, is going to affect the real estate business in an even grave manner.
- Residential Property Trends are jittery
As per the latest surveys and researches, people are more willing to work with reputed and well-established builders instead of small realtors. They don’t want to fall victim to higher execution risks that are inherent in the small builders’ deals that might offer cheaper homes. They prefer investing their money in some expensive residential properties that come under a lower execution risk bracket. Further, the buyers are showing more interest in buying a ready-to-move home, instead of building one from scratch. While doing so, they relate the quality of stuff used in construction and the level of finesse with the brand. This is why they are going to invest in reputed brands that offer homes with an expensive price tag, but don’t compromise with the quality of service and standards of construction. Buying a ready-to-move home also minimizes the time-consuming research on home interiors and design ideas.
Well, this brings us to the conclusion. We hope that this trend in the real estate industry after the Covid-19 pandemic proves helpful for all our readers and they get valuable insights into the post-pandemic future of real estate.