Introduction
Let’s admit it, nobody among us had ever imagined that 2020 will come to such a pass; that we will have to endure a lockdown situation, revamp our hygiene etiquette and live with an invisible enemy for the moment.
And now with the economy unlocking after being a sitting duck for three months, the brutality of the lockdown is coming out to the fore. A real GDP decline of 3.2% in the fiscal year 2020-21 and growth projection for India down to 1.9% this year are some tell-tale signs that the path to recovery is long.
The Impact on the Real Estate Sector
A blow of this magnitude has strained the real estate sector to some extent. The property industry was coming out of its doom-and-gloom days with renewed confidence and sales looked respectable at the start of the year. The lockdown happened and crashed the expectations of the real estate community.
Real estate experts pegged that the worst for the real estate sector has come. It’s true that the property sector received a setback as the construction of properties winded up, new project launches got shelved, and finishing touches to almost ready projects got stayed. But the demand for new homes didn’t ebb to the extent as projected earlier.
A transition to a new normal
With the lockdown obliterating the traditional concept of buying and selling homes through physical visits, face-to-face interactions, and physical documentation, real estate developers gravitated to the online domain and made merry. Many real estate developers registered phenomenal digital sales, some figures going beyond expectations.
Square Yards with its sophisticated, battlefield-tested tech architecture, helped real estate developers sell 3100+ homes digitally within three months of lockdown.
This splendid development has unearthed the truth that the demand for affordable homes was there. However, due to lockdown, homebuyers were weaned off from their chance of physically buying a home. But with the sudden onset of the digital home-buying trend, homebuyers fulfilled their long pent-up aspirations.
Investment opportunities in the real estate sector
If we see the opportunity in the real estate sector post lockdown, we can say that this is an opportune time for investment. The real estate sector has seen tough times in the past and this lockdown is no less scary for the brick-and-mortar sector. But people have realized that real estate is the safest investment in such tough times.
The bleeding of stocks and gold securities during this time has opened the eyes of millennials who are first-time homebuyers and have attained family-forming years, that real estate is not volatile and has a steady growth rate over the years.
The fact that real estate prices have remained steady in spite of the ongoing pandemic has pulled millennials towards investing in homes. It gave them a sort of comfort that their lifetime savings will not get wasted. The outcome of this thought is evident with the real estate sector brimming with sales making it the hottest sector in the post-lockdown period.
Importance and Safety of Owning a House
A reason why the Real Estate Sector will come out of this mess in a grand fashion is the fact that the lockdown and WFH etiquettes have instilled in people the importance and safety of owning a house. And with WFH set to become a new normal for some years, the demand for bigger homes has shot up.
Most real estate developers are designing their current and upcoming projects keeping this new-born thought in mind. The ushering of digital selling for real estate has been a boon for the real estate sector as deals get closed faster and home seekers can do virtual property visits multiple times from their couch.
Though with the unlocking of the economy, construction activity will take off at a slow pace due to lack of labor, with the passing of time, things will normalize as the fear of the pandemic subsides. And this will amplify the pace of the real estate sector to its former glory. Till then, let’s wait and watch.
FAQs
1. Is it a good time to invest in real estate post-lockdown?
Yes, it is an opportune time for investment in real estate post-lockdown. The real estate sector has remained steady throughout the ongoing pandemic and has proven to be a safe investment. With stocks and gold securities bleeding during this time, millennials and first-time homebuyers are realizing the stability and steady growth of the real estate market.
2. How has the digital home-buying trend impacted the real estate sector?
The digital home-buying trend has had a significant impact on the real estate sector. With physical visits and face-to-face interactions not possible due to the lockdown, real estate developers shifted their focus to online platforms. This has resulted in phenomenal digital sales, exceeding expectations. Homebuyers are now able to fulfill their aspirations of owning a home through virtual property visits and online transactions.
3. Why is real estate considered a safer investment compared to stocks and gold?
Real estate is considered a safer investment compared to stocks and gold because it is not as volatile. Real estate prices have remained steady in spite of the ongoing pandemic, giving investors a sense of comfort that their savings will not be wasted. Additionally, real estate has shown a steady growth rate over the years, making it a reliable investment choice.
4. How has the lockdown and work-from-home scenario influenced the demand for homes?
The lockdown and work-from-home scenario have increased the demand for homes. The importance and safety of owning a house have been instilled in people during this time. With work-from-home set to become a new normal for some years, the demand for bigger homes has risen. Real estate developers are now designing their projects with this in mind, catering to the needs of homebuyers who require more space for working remotely.
5. How has the real estate sector adapted to the digital selling trend?
The real estate sector has adapted to the digital selling trend by leveraging online platforms and technology. Deals are now closed faster with the help of virtual property visits and digital documentation. Real estate developers are utilizing sophisticated tech architecture to facilitate digital sales and enhance the homebuying experience for customers. This has been a boon for the real estate sector, enabling them to continue sales and meet the demands of buyers in the post-lockdown period.
6. Will the real estate sector recover to its former glory after the lockdown?
While the recovery of the real estate sector after the lockdown may take some time, it is expected to bounce back and regain its former glory. Construction activity may initially be slow due to a lack of labor, but as the fear of the pandemic subsides and the economy unlocks, things will gradually normalize. The demand for homes, especially with the new normal of work-from-home, will contribute to the sector’s recovery and growth.
7. What should we expect in the real estate sector in the near future?
In the near future, we can expect the real estate sector to continue its digital transformation. Online platforms and virtual property visits will become more common, making the homebuying process convenient and efficient. Real estate developers will focus on designing properties that cater to the needs of remote working. As the economy unlocks and normalizes, the pace of the real estate sector will amplify, bringing it back to its former glory.
Conclusion
As we navigate through these unprecedented times, the real estate sector has shown resilience and adaptability. The lockdown has accelerated the digital transformation of the industry, making online homebuying the new trend. With the stability and steady growth of real estate, it has emerged as a safer investment choice compared to stocks and gold. The importance of owning a house and the demand for bigger homes in the work-from-home era have further fueled the recovery and growth of the sector. As the economy unlocks and construction activity resumes, the real estate sector is poised to regain its former glory. It is indeed an opportune time for investment in real estate. So, whether you are a first-time homebuyer or looking to expand your property portfolio, explore the options available and make the most of this post-lockdown period.
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