The year 2020 has been impacted solely by Covid 19 pandemic which brought the whole world to screeching halt, significantly affecting the global economy. Already struggling Real estate sector was hit hard with nation-wide lockdown, businesses going shut and people losing jobs. But things are looking positive as the year ends bringing more stability.
Swapna More, Co-Founder, KAGAAY mentioned realty sector will showcase following trends in 2021:
Higher Demand for Properties;
Ever lowest bank loan interests , NRI returning to India, Government push to the sector, Companies shifting from China to India, stamp duty reduction, RR rate exemption will create a huge opportunity in Real Estate Market raising the demand for properties.
Increase in Real Estate Investment:
In 2020, many big investors found that real estate investment is the best in long run. Frequent share market crash has changed everyone’s mindset. The good news is that the year 2021 will offer numerous investment opportunities. Right from low-cost studio apartments to luxurious bungalows and penthouses, investors will be easily choose a property that will work with their investment plan.
Rise in Emerging Micro-Markets
In 2021, many B and V class cities will grab attention from real estate investors. Mainly due to migration to small cities and affordability. Such cities will witness huge demand for residential homes and big development in infrastructure.
Commercial Segment on the Upswing:
Inspite of work from trend and compulsions, commercial real estate segments is expected to experience a constant rise in demand. Investments in office spaces, IT Parks, data centres, warehousing and logistic parks will grow. Arrival of multinational companies, the emergence of start-ups and co-working spaces etc has led to growth, which is here to stay.
Emergence of new technology assisted ways:
With the restrictions on social contacts and physical movements and other factors arising due to the pandemic situation, adopting new technologies is the new mantra for the real estate industry. Apart from ease of physical movements, these innovations are expected save time, energy and money of buyers and sellers.
Tushar Desai, CTO-KAGAAY said, "A lot is in stores for everyone in Real Estate Market. Yes, we were the most impacted during Pandemic but , this is not the first time that we were tried to bogged down. Real Estate as an industry has seen many ups and downs in last one decade. However, lets not forget – Real Estate is the most recognised investment sector, Worldwide." Following is in stores for the real estate sector.
- Reverse migration from cities to suburbs and native. This will result in increased demand in tier2 and tier3 cities.
- Customers might begin choosing larger homes which shall facilitate ‘Work From Home’ facility and also societies which are digital villages, wired with high broadband connectivity, power back-up etc.,
- Health will be of paramount importance while buying homes. So, homes and societies which enable meditation spaces and gardens, herbal gardens, walk & Jog tracks, more ventilation, space and abundance of water etc will be the decision drivers while purchasing or renting homes.
- Offices will employ hybrid model of working and distance from homes wont be a concern for many in future. However, the hub-and-spoke model of office working culture will enable smaller offices to spring up with multiple and accessible locations. This will redefine the commercial real estate in a very large way.
- Technology will play crucial role in revival. Anything that helps to expedite sales cycles will thrive the market. Block chain is not very far from entering the Real Estate to cause disruption in how the registration.
- Proptech companies will continue to evolve and innovate to accommodate all the changes coming our way as we navigate through the new norm that COVID-19 has created.
- Also, with RBI and the Indian government announcing policies to help the real estate sector wade through this situation and by correct adoptions of new innovations, the real estate sector will come out as a winner very soon.
