The year 2020 was definitely an unprecedented year with the breakout of Covid-19 bringing the world to a complete standstill. Many were taken aback by the intensity of the virus, with scarcity in healthcare systems and a huge dip in the overall economy of the world. With the resurgence of the pandemic, the pandemic continues to wreak havoc all across the world. However, while the past year brought many challenges and a lot of distress, there were also ample opportunities to improve and innovate. In more ways than one, the realty sector benefited from the pandemic to a large extent.
In the financial year 21’, the real estate industry saw a rise of 19% in just one year. The sector saw an inflow of over $6.27 billion. Almost 93% of the total private equity funds were from foreign investors. Many foreign investors are looking at India as a profitable investment in the real estate sector. The past year has also made many realize that there is no place like home. Many NRI individuals are looking to invest in homes in their hometowns. The pandemic has definitely toppled all sense of normalcy and has helped many of us understand the value of a home. When we are forced into staying at home, having a roof over our heads that we can call our own is a great benefit. Many are looking to invest in properties in India to feel a sense of security. Another reason why people are looking at investing in properties in India is due to the gaining strength of the dollar and dirham as compared to the Indian rupee. This has made India a highly competitive market. The introduction of RERA has also added to the reliability of properties and developments in India, which has attracted both, Indian residents, as well as people from other countries. While the reasons behind investing in a home in India vary, it has certainly proved to be a refreshing turnaround for the industry.
Shift to digital
Another positive impact of the pandemic has been innovative technological advancements in the real estate realm. While India was already on a trajectory of a digital revolution, the imposition of the lockdown sped up the process and forced realtors to think of out-of-the-box, innovative ways to attract customers. Sales and the generation of revenue have now fully shifted to a digital marketing platform. Through virtual walkthroughs and digital tours of properties, realtors have bridged the gap between consumers and the organization. Social media platforms have also become a great outlet to gain many new potential customers. Realtors are also investing in augmented reality and virtual reality to utilize technology to their advantage. Webinars have also been a useful platform to give viewers a comprehensive view of not only the properties but the functioning of the organization as well. The aftermath of the virus will push realtors to strike the perfect balance between traditional methods of selling and the use of advanced technology in order to maintain their positioning in the market. This also widens the scope of innovation and modernism in the overall approach to the home-buying process.
Increasing need for a permanent residence
The pandemic was most certainly an eye-opener for many of us. It reminded us of the many things that we sometimes take for granted, whether it’s our health, our families, friends, or even our homes. Especially during these uncertain times having a roof over your head is an added benefit. With everyone being locked down at home, having a home that is spacious and fulfills your basic needs is extremely important. Before the pandemic struck, renting homes was a popular trend in comparison to buying homes due to the high prices of properties. However, this quickly changed after the spread of Coronavirus. With this rapidly changing landscape, many are looking to invest in a home and are looking at it as a long-term investment. The lowering of prices has resulted in a large number of millennials showing interest in homeownership. Another factor that contributes to this shift, is the decrease in home loan rates ranging between 7.15% and 7.8%. All these factors put together have collectively benefited the real estate industry to a great extent.
With the increase in sales due to these factors, the real estate sector has seen a considerable increase in funds as compared to the last financial year. The future of the realty sector looks promising in the post-covid era. A new-age real estate market dictated by sustainable, innovative, and advanced choices will see a distinctive rise. In summary, while there were many pitfalls 2020 brought with it, there were also many advantageous opportunities, that pushes the industry towards more progressive and evolved realty developments. Therefore, while many may assume that the year was a loss, it was also profitable in many aspects.