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Indian Real Estate was suffering from a slowdown in demand as the market was undermined by price correction, muted buyer’s sentiments & host of policy overhauls. The industry was highly hopeful in 2020, where finally the markets were set for a recovery.
After some initial momentum as soon as the Coronavirus came into the picture, sentiments plummeted. Following a lockdown, the momentum in the market came to a standstill. Although the industry showed some limited maneuvering, a sharp decline was inevitable.
However, as they say, every crisis is also a catalyst to new reforms and changes, the same holds for the current pandemic. As markets are reopening and sentiments are reviving, the industry is witnessing some positive and long-lasting changes.
Technology has started moving to the core from the periphery. We are entering into a new era of O2O (Online to Offline) business model, where technology will drive most of the customer interaction. The property brokerage space is seeing an unprecedented amount of digitization including digital marketing, AR/ VR, e-brochure, online transaction engines, webinars, property virtual shows, and digital walkthroughs. Alongside marketing and transaction, new product types are also coming up, fine-tuned to the evolving demand. Some of the new real estate products, which are going to be very popular in a post-COVID world, are mentioned below-
Farm House/ 2nd Homes/ Holiday Homes: As the Work from Home (WFH) culture is picking up fast, 2nd homes are independent farmhouses, 2nd homes, & holiday homes are going to see a rise in popularity. Investments in such properties have already started to edge up in recent months. People will like to operate away from the noise of the urban lifestyle and enjoy a more tranquil and peaceful working environment.
Rise in Peripheral Locations: In a post COVID world, the peripheral locations in major metros will gain more prominence. As WFH culture is becoming popular, individuals will like to shun congested parts of the cities to relatively open peripheral locations in the city. Moreover, prices are more affordable in peripheries. Hence, individuals can afford a larger space for lesser prices. The additional space can be used for work stations, fitness places, and leisure activities to enjoy a more balanced lifestyle.
Co-Living Culture: The post COVID world will see a surge in popularity fro co-living lifestyle. While families will shift to large spaces in peripheries; bachelors will gravitate towards relatively affordable but good quality co-living spaces. In Tier 1 & 2 cities co-living culture backed with better hygiene, entertainment facilities, sporting avenues will increasingly become popular.
Asset Generating Commercial Assets: Although a quick revival in commercial Real Estate looks far –fetched, there will be renewed investor interest for income-generating commercial assets. The newfound interest is rooted in financial volatility and staggering stock markets. As economic outlooks look little uncertain currently, investors are eyeing income-generating hard assets such as real estate as it can greatly hedge against any possible future turmoil, besides giving a constant flow of income.
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