Covid-19 Second Wave Alters Realty Sector In India
NEW DELHI — India’s second wave of the Covid-19 virus has altered the realty landscape, according to Vineet Nanda, one of India’s leading infrastructure and real estate experts.
“Customers are now beginning to veer towards multifunctional working space, with contemporary amenities and safety provisions, in community living format at high-end locations,” Nanda said.
“Prior to the pandemic, young executives generally stayed in rental accommodations and saved money for the future. A major shift in perspective and preferences happened post-pandemic. The youngsters especially are now renouncing the option of rental accommodation and would rather opt for a ‘work from home space’, that is conducive to their holistic wellbeing.”
The real estate sector in India is growing at a fast pace and will cross the $1 trillion by 2030, according to the Indian Brand Equity Foundation (IBEF).
The Real estate sector will contribute 13 percent to India’s Gross Domestic Product by 2025, the note said.
“Emergence of nuclear families, rapid urbanization, and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial, and retail,” IBEF said in the note.
It is noteworthy that 80 percent of residential purchases are by the end-users, out of which the majority of them are first-time buyers.
With social distancing emerging as the key concern during the pandemic, homebuyers increasingly opt for self-owned independent homes, villas, or raw houses in convenient locations.
Additionally, smaller plots, in the range of 1,500-2,000 ft., are predicted to witness an uptick in sales across urban and semi-urban locations.
With trust, quality, and value for money gaining currency, the professionally managed companies will command an edge over the conventional players.
The Covid-19 pandemic has also heralded a paradigm shift towards digitization in real estate. Developers are leveraging social listening, social listening, social insight, customer satisfaction index, and CSAT to gain an in-depth understanding of their target audience.
In 2020, the residential market showed quick signs of recovery, and the growth momentum continued in the first quarter of 2021, global real estate services firm Jones Lang LaSalle Incorporated said in a note in March.
Real estate sales volume recovered to more than 90 percent of the volumes witnessed in the first quarter of 2020 (pre-Covid) across the top 7 cities in the country.
“While the leasing momentum for office in the upcoming quarters will mainly depend on the time taken to contain the second wave of Covid-19 cases, the aggressive vaccination drive and cautious approach by the government to contain the virus gives an optimistic outlook for the market’s recovery,” JLL said in the note.
(With inputs from ANI)
(Edited by Abinaya Vijayaraghavan and Praveen Pramod Tewari)