Real Estate Investment has always been considered as one of the most stable & one of the safest investment options. It is often seen synonymous to one’s status & wealth creation within the community and provides the much-needed identity in their neighbourhood. Over the last few months, the entire economy & the market has witnessed the emergence of novel pandemic Coronavirus which has also resulted in the collapse of global markets, and the ripple effects have seen across all the industry verticals.
The risks of buying the stocks have increased, and keeping money in the banks will also fetch lower returns. This is unlikely to change anytime soon. Thus, owning a property will become important more than ever during the current times. The lockdown gave the home-buyers an ideal time to invest their time in searching, evaluating & zeroing down the choices of their dream home. Priorities have changed for most of the people & hence it would increase the demand for real estate in the post-Covid-19 world.
Millennials are the key demand drivers that will, in turn, boost the demand for residential real estate. Prevailing Uncertainties have changed their preferences as well, and they are looking to invest in the residential properties in the mid & affordable segment. Today businesses are moving towards digital, including the real estate sector to engage and involve with the potential customers. The most common tools are video calls, social media & drone tours to engage the future buyers. Hence, it has also become imperative for the developers to put their best foot forward and trigger the buyer’s decisions while they stay indoors.
This was also supplemented by the repo & reverse repo cuts which made the home loans cheaper. This was coupled by lowering of interest rate to 7%. Hence, it has become an ideal time for the home-buyers to look out for the properties, especially those who have been deferring buying decision (Source: Financial Times). Also, it is the need of the hour as uncertain times will become part of our new normal. We all must learn to live with it and make wiser investment decisions into the products of longer shelf-life and have high appreciation value.
The coming festive season will also likely to supplement the decision as the developers would roll out various incentives’ schemes. Hence, it is expected that post coronapocalyspe. Smart buyers will reap the benefits of better-priced deals. The overall impact of the pandemic may seem to be negative; however, it’s highly likely that it triggers a positive change in the whole ecosystem. This would also create a win-win situation for both the buyers as well as builders.