Despite the drawbacks in the real estate sector, India has always had a way of arising during tough times. The arrival of the pandemic has brought massive change not only in the economy worldwide but also in every sector of the market. Turn of events has seen the loss of jobs and existential crisis. To hold on in this pandemic, India’s real estate will have to go through a lot of changes like,
Decline in Sales
The real estate sector already saw a decline in sales with the rise of structural reforms and with the COVID-19 outbreak, it will significantly drop. In past years India’s real estate saw a decline in sales with certain implemented structural reforms and yet managed to function. But the delay in sales conversion due to the COVID-19 situation will see an additional downfall with no major drop in prices given the high input costs. The real estate sector is, therefore, envisaging tactical offers that can help them generate functionality to boost sales.
Before the pandemic, the Indian housing sector had been withdrawn and took into consideration certain dynamics by focussing on execution, reducing unit sizes, and developing affordable housing projects like luxury flats for sale in Mumbai. By the time, it was to see the dawn of progress on these dynamics the housing sector saw the phase of COVID-19 leading to a halt of 4.7 lakh new project launches.
Given the lockdown, construction sites were stopped and there was a delay in construction is due to many reasons including lack of construction materials, shortage of laborers, and the arrival of monsoon. By the time projects are built again it might tactfully change India’s housing sector by the time things function normally.
Rise in Unemployment
Apart from the unavailability of laborers in the real estate sectors, there is a massive furloughing of employees from multiple companies which leads to a lack of job opportunities in the economy. Unless the drain in cash flow is cleared and there is clear job security the demand for houses would be minimal as persistent home buyers would likely postpone the decision to purchase a house.
In May, the government of India proposed a few measures to let the real estate sector stand strong in the crisis. The liquidity scheme and extension in project completion announced would act as a pillar to the Indian real estate. Real estate is the contributor of 6% of the nation’s GDP including the housing sector which required such support.
Shift in Selling Strategy
The housing sector has mainly seen a fastidious shift in its selling techniques over the past year and largely amidst pandemic. With the country under a nationwide lockdown, real estate companies such as Suraj Estate which are amongst the top builders in Mumbai have adapted and shifted their way of selling homes online. As builders and developers have shifted the mode of purchasing online, it has turned more consistent for buyers to buy a house without scrutiny.
Increase demand in Housing Sector
With the imposed lockdown, people are bound at home coexisting between living and working. As a home buyer who doesn’t find enough space to manage both would look for a tenant which may let him adapt to this change. Support measures from the government like low home loan rates can increase the chances for renters. People living on rent could think of purchasing a home of their own now as due to loss of income paying rents to the owner may be causing a problem.
Homes with Better Amenities
In the long term, homebuyers would possibly demand amenities like – swimming pool, clubhouse, gymnasium, kid’s play area, etc. around their desired projects that promote healthier living by having a greener environment and medical facilities even if that leads to rising prices.
Need of Large Apartments
Houses with reduced space units wouldn’t see much attention as buyers in their current homes may think that their house is not enough and may look for larger flats. The housing market might face this as an issue as prominent home buyers would likely consider buying a large apartment. Projects by Suraj Estate Developers not only divulge in size and space but also provide a sense of luxury in their 2 bhk and 3 bhk flats in Dadar, Prabhadevi, or flats in Mahim which are ideal for home-buying decisions for buyers in the future.
There are changes to be embraced willingly and also due to the imposed conditions which if not contained soon, would not only impact the economy but also adversely affect the housing sector including developers and real estate companies.