The COVID-19 pandemic has led to upheavals in several economic sectors in India, including the real estate industry. Now, as the pandemic-induced lockdown eases, the realty sector must repurpose its operations, from space layouts to actual construction sites and demand resurgence while paying extra attention to health, mobility, and social distancing concerns. Let’s find out how.
Post COVID-19, the biggest challenge for the real estate industry will be resuming the unfinished/delayed projects with a lack of sufficient labour force; meanwhile, their inventory remains unsold, and demand falls.
And,commercial planning will incorporate more open spaces while optimizing workstations and cubicles to prevent health threats. Likewise, the demand for buying a house in satellite townships and gated communities will surge as the demand for additional spaces increases.
How the Realty Demand Will Change Post COVID-19?
In the wake of COVID-19, realty demand decreased due to a severe credit crunch. Nonetheless, to revive demand, the real estate industry can leverage latent opportunities in the commercial and hospitality sectors as the need for touch-less, hygienic spaces surge. Apart from these, IT and BPM sectors can revive the demand for office spaces as the integration of technology gains traction.
The demand for ready-to-move-in housing units will also see a surge, especially among the first-time buyers, owing to safety and remote working benefits of an owned house.Additionally, with eased down foreign exchange rates, NRI investments are likely to grow with many returning ‘back home’in the wake of the pandemic.
Furthermore, government provisions can promote the consumer sentiment for buying a house due to –
- Reduction in GST rates and Stamp Duty Charges
- Cut down in RBI’s repo rate by 4.40% resulting in lower home loan interest rates
- A three-month moratorium on loans, including housing loan
- Extension of the PMAY scheme till the FY21 for the M.I.G category
However, these provisions will take time to drive any significant change in the realty sector.
A Sure Revival
The road to recovery will be gradual but definite, depending mainly on the efficiency of the demand and supply cycle. Nonetheless, operations in the realty sector will transform, with increased reliance on digital platforms and automated construction sites for marketing and sales. Realty business will turn to virtual means, offering digital property tours and monetary transactions to accommodate consumer safety concerns and revive demand.
In addition to this, several investors are choosing real estate sector over similar assets due to the volatility of the stock market post-COVID-19. So, the real estate sector will bounce back albeit slowly.
The Bottom Line
Overall, the outcome seems to be positive for the real estate sectorin the wake of COVID-19 pandemic, but not before significant transformations.It will witness increaseduse of modular construction technologies and IT-optimisation in urban planning.
Besides, the financial sector will assist in the recovery of the real estate industry. Many home loan borrowers will benefit from the three-month moratorium as they struggle to pay off their home loan online.
As for potential home buyers looking for a home loan, apply after conducting proper research. Check your home loan eligibility and estimate the EMIs using a home loan EMI calculator to plan your finances better.
Article Submitted By Community Writer