The dynamics of every sector is undergoing a change. The real estate sector, which is the biggest contributor to the country’s GDP, is also going to play an important role in the transformation or the changing dynamic. While Covid-19 has created an upheaval in the entire global ecosystem, the pandemic may turn out to be a blessing in disguise for the real estate sector, which has been stressed for a couple of years owing to various factors.
Already the indications of it are there. Accordingly to a recent consumer sentiment report – jointly conducted by Housing.com and NAREDCO, a substantial chunk (35%) of people still perceived real estate as the best investment option closely followed by gold (28%); Fixed Deposits (22%) and Stocks (16%). The confidence of investors on various asset classes like equities and fixed income tools are completely shaken and real estate stands to gain from it.
It is high time for the real estate industry to grab the opportunity with both hands. With the importance of owning a house well and truly reinforced, we envisage a sharp jump in the demand for homes in the next 3-6 months. Amid the interest rate hovering around 15-year low, the affordable housing and ready to move-in are likely to be the prime beneficiary of the improvement in the sentiment.
But luxury properties are also likely to have its share of opportunity. More and more people are likely to opt for bigger houses or villas or even farmhouses as they have realized the importance of space as well as that health and hygiene. The demand for better amenities and enhanced inclination towards nature is likely in the near future. Wellness amenities such as yoga studios, meditation rooms, spas, gymnasiums, tennis courts and jogging tracks may become the new rage among urban homebuyers. The gaining traction of work-from-home is also likely to assist the demand for bigger houses.
As our day to day supplies of farm produce carry a high risk of transporting the virus through them, the rich and the well-off may prefer living in farm houses, which would help them in meeting all their daily needs of fresh and green vegetables as well as whites and meats straight from the source, thus unadulterated and fresh. Needless to say, it will minimize the risk of infection to a significant extent.
And as they opportunity knocks the door once. The real estate sector needs to remain agile to such an opportunity and thereby ensure it regains the trust of the consumers.