By Runwal Group Posted On Jul 06, 2020
Category Residential properties
The pandemic caused by the corona virus has sent shock waves across our global economy and disrupted all major industry verticals, including the real estate sector.
However, with every history-defining event, comes the need to improvise, adapt and overcome. There is already a push towards innovation in real estate, and this, along with the changing preferences of homebuyers, will give rise to key real estate trends during the lockdown.
Let's take a look at the top 6 significant consumer trends that have emerged in the Indian real estate scene during the era of Covid-19:
Many individuals who weren't seeking to invest in property have reconsidered their decision during the lockdown phase. Real estate as a physical asset affords solid security even during events of financial uncertainties. The value of real estate as an imperishable asset along with low home loan interest rates have positively impacted home-buying decisions.
There's been a significant rise in the number of individuals in the age group of 25-35 years who believe that real estate is the best asset class for investments. Physical assets like real estate provide the highest sense of security, especially during frequent falls in financial and stock markets caused by economic crises such as the Covid-19 pandemic. The global meltdown of 2020 has brought about a change in priorities and more and more new-age millenials are preferring to own a home rather than pay rent.
With the lower-income groups hard hit by the economic crisis, the demand for the affordable housing segment was expected to go down. However, there has been a steady interest among property-seekers for housing priced under Rs. 45 lakh. It could be hypothesized that homebuyers with higher budgets are now preferring to purchase affordable, functional houses, instead of investing a large sum of money in premium properties during this economic downturn.
Due to the lockdown, most construction activity has been completely halted and project delivery have been delayed until the foreseeable future. In this uncertain scenario, investors are naturally keener to look at ready-to-move-in homes over under-construction properties, resulting in a noticeable demand for completed and ready residential projects.
A majority of home-buyers are looking at risk-free investments, which may even entail settling for higher-priced properties as long as they are from a trusted and renowned developer. Consumers do not want to purchase from smaller developers who offer low-price properties but pose a higher risk.
Developers who have leveraged digital platforms for conducting virtual site walkthroughs and executing smart, seamless online bookings will gain the upper-hand during this lockdown period and further ahead. Innovation in digital strategies will define the growth trajectory ahead for residential real estate in India. Maximum online bookings just before and during the pandemic have been observed in tier-1 metropolitan cities like Mumbai, Bengaluru and Hyderabad.
There's a silver lining to every cloud, and the current situation has presented many opportunities favourable to home-seekers. If you're looking to invest in luxury residential projects in Mumbai, now's the best time as property prices are expected to fall and interest rates are at an all-time low.